US Stock Futures Fall as Hot Inflation Revives Fed Hike Concerns

3-line summary

• US stock futures fell (S&P 500 futures -0.3% to 7,747.50, Nasdaq 100 futures -0.8% to 29,943.00, Dow futures flat at 51,866.0 as of 20:20 ET), per Investing.com, after Wednesday's session saw tech- and AI-led selling that left the Nasdaq Composite down 1.9%, the S&P 500 down 1.1% and the Dow down 0.1%. September core CPI (ex-food and energy) rose 2.6% year-over-year (vs. 2.5% forecast) and 0.3% month-over-month (vs. 0.2% forecast); gasoline prices jumped 9.1%, accounting for more than half of the monthly inflation increase, with broad-based price pressure elsewhere including housing.
• The data raised expectations the Fed could hike rates again at its October 27-28 meeting, after lifting its benchmark to 3.75-4.00% in September; investors had expected a hold this month. Treasury yields spiked on the data before paring gains; the dollar strengthened. AI-related stocks fell further — CoreWeave about 16%, Nebius about 11%, Dell about 11%, Oracle about 9% — on financing-cost and valuation concerns. Oil dipped slightly in Asian trading but stayed elevated on Middle East tensions, with Brent above $105/barrel. Thursday's PPI and retail sales data are next up.

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