Nasdaq ends sharply lower as hot inflation data stirs rate-hike worries
SPY•Hotter-than-expected September inflation data drove the Nasdaq down 1.88%, its biggest daily drop since July 23, while the S&P 500 fell 1.11% and the Dow slipped 0.09%. Traders raised the probability of a Fed rate hike this month to 37%, from 22% on Tuesday.
1. Inflation fuels rate concerns
US consumer prices accelerated in September as gasoline costs surged and price pressures broadened beyond energy. Traders increased the chance of a Federal Reserve rate hike this month to 37% from 22% on Tuesday.
2. Technology shares lead declines
The Nasdaq fell 1.88% to 26,692.87, its biggest daily drop since July 23, while the S&P 500 lost 1.11% to 7,718.94, its largest one-day decline since July 29. Oracle fell 8.8%, CoreWeave dropped 15% and Nebius lost 10%; the Philadelphia Semiconductor Index declined 4.3% for a sixth straight session.
3. Other market moves
Eight of the 11 S&P 500 sector indexes declined, led by information technology, down 2.6%. Bank of America fell 4.8% after its third-quarter profit declined as it set aside $1.2 billion for regulatory fines. Apple rose 0.5%, closing with a market capitalization above $5 trillion for the first time.
