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Source: Newsmaker.id
US stock indexes fell sharply on Wednesday (October 14) after September inflation data showed stronger-than-expected price pressures. The S&P 500 declined 1.11% to 7,718.94, while the Nasdaq Composite dropped 1.88% to 26,692.87. The Dow Jones Industrial Average also fell 48.62 points, or 0.09%, to 51,621.48, although gains in healthcare stocks helped limit the index’s losses.
Market pressure intensified after the Consumer Price Index (CPI) showed US inflation rose 0.6% month-on-month and 3.7% year-on-year in September. The annual figure exceeded economists’ expectations of 3.6%. Meanwhile, Core CPI, which excludes food and energy prices, increased 0.3% month-on-month and 2.6% year-on-year, also slightly above forecasts of 0.2% and 2.5%, respectively.
The hotter inflation data raised concerns that the Federal Reserve may need to maintain its restrictive monetary policy for longer. Markets have increased their expectations for another interest rate hike, particularly in December, as persistent inflationary pressures could make it more difficult for the Fed to ease monetary policy in the near term.
Apart from inflation, artificial intelligence-related stocks also came under significant pressure on Wall Street. Investors stepped up selling after valuations across the AI sector were seen as elevated, while higher interest rates increased financing costs and reduced the appeal of riskier assets. As a result, the Nasdaq experienced a deeper decline than the other major US indexes.(mrv)
Source: Newsmaker.id