Nasdaq ends sharply lower as hot inflation data stirs rate-hike worries
The Nasdaq closed sharply lower as hotter-than-expected inflation reports stirred new concerns over potential Federal Reserve interest rate hikes. Surging energy and gas prices pushed the consumer price index to 3.7 percent in September, exceeding forecasts and sending American equities into their worst sell-off since July. Artificial intelligence stocks and chipmakers led the market retreat, deepening a broader rout across major indexes.
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- ✓ Inflation rose to 3.7 percent in September, driven by surging gas and energy prices.
- ✓ The Nasdaq and the S&P 500 suffered their worst single-day drops in over two months following the inflation report.
- ✓ Artificial intelligence stocks and chipmakers experienced steep declines amid renewed bets for interest rate hikes.
What changed
A higher-than-expected consumer price index report for September triggered a broad technology sell-off and renewed fears of Federal Reserve rate hikes.
Live updates
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Nasdaq Drops as Hot Inflation Data Sparks Rate Hike Fears
The Nasdaq closed sharply lower as hotter-than-expected inflation reports stirred new concerns over potential Federal Reserve interest rate hikes. Surging energy and gas prices pushed the consumer price index to 3.7 percent in September, exceeding forecasts and sending American equities into their worst sell-off since July. Artificial intelligence stocks and chipmakers led the market retreat, deepening a broader rout across major indexes.
Why it matters
The sharp drop in equity markets highlights investor sensitivity to persistent price pressures and monetary policy shifts ahead of midterm elections. Higher energy costs continue to drive inflation higher, complicating the economic outlook and reviving fears that central bank officials will tighten borrowing costs further. Major technology shares bore the brunt of the selling pressure, signaling a shift in sentiment for sectors that previously enjoyed prolonged stability.
What is confirmed
- Inflation rose to 3.7 percent in September, driven by surging gas and energy prices.
- The Nasdaq and the S&P 500 suffered their worst single-day drops in over two months following the inflation report.
- Artificial intelligence stocks and chipmakers experienced steep declines amid renewed bets for interest rate hikes.
Still unconfirmed
- Political pressure regarding the midterm elections directly influenced the Federal Reserve policy trajectory.
What to watch next
- Upcoming central bank communications regarding potential interest rate adjustments
- Subsequent consumer price index reports and energy price trends
confidence 90%Sources used for this update (34)
- www.investing.com — Investing.com - Stock Market Quotes & Financial News
- finance.yahoo.com — Yahoo Finance - Stock Market Live, Quotes, Business & Finance...
- en.wikipedia.org — Nasdaq - Wikipedia
- finance.yahoo.com — NASDAQ Composite (^IXIC) Charts, Data & News - Yahoo Finance
- markets.businessinsider.com — NASDAQ 100 INDEX TODAY | NDX LIVE TICKER | NASDAQ 100 QUOTE &...
- Investor's Business Daily — Tech Futures Rise: Meta, AMD Lead 5 Buys; ASML, CPI Inflation Due
- CNN — Inflation was hotter than expected in September, rising to 3.7% | CNN Business
- Yahoo Finance — Surging gas prices pushed CPI inflation to 3.7% in September. The Fed is watching.
- CNBC — Inflation data, Bank of America's penalty, Apple's new home hub and more in Morning Squawk
- CNN — Trump was trying to force prices lower ahead of the midterms. But Iran gets a vote, too
- Fox Business — Dems call Trump 'a total failure' over inflation as White House cites economic growth
- Reuters — Nasdaq ends sharply lower as hot inflation data stirs rate-hike worries
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