Nasdaq Plummets 1.88% as September Inflation Surprises Markets
Hotter-than-expected US consumer price data for September triggered a sharp Wall Street sell-off on Wednesday, pushing the Nasdaq down 1.88% and lifting rate-hike expectations. Reuters reported that accelerating price pressures fueled by surging gasoline costs and broadening inflation forced investors to reevaluate Federal Reserve monetary policy, pressuring technology and artificial intelligence equities sensitive to high borrowing expenses.
Semiconductor Index Extends Losing Streak to Six Sessions
The Philadelphia SE Semiconductor Index dropped 4.3% on Wednesday, marking its sixth straight declining session and its longest losing streak since May 2025. Barclays downgraded AI server manufacturers Dell and Hewlett Packard Enterprise to “equal-weight” from “overweight,” causing their shares to sink 11.4% and 8.2% respectively. Oracle shares fell 8.8%, while AI-infrastructure firms CoreWeave and Nebius tumbled 15% and 10% respectively. Apple stood as a notable exception, rising 0.5% to close above a $5 trillion market capitalization for the first time.
Bank of America Profit Declines on Regulatory Fines
Bank of America shares fell 4.8% after the lender reported a lower third-quarter profit due to $1.2 billion set aside for regulatory fines covering failures to detect potential money laundering. Morgan Stanley dropped almost 3% despite posting an increase in quarterly profit, dragging the S&P 500 Banks index down 0.7% to its lowest close since June. Meanwhile, Bending Spoons rallied 41% after Berkshire Hathaway invested another $330 million in the owner of Vimeo and AOL.
September Consumer Price Acceleration Drives Fed Rate Bets
US consumer prices accelerated in September due to surging gasoline and broader price pressures, according to data from the Labor Department’s Bureau of Labor Statistics. CME’s FedWatch tool showed interest-rate traders pricing in a 37% chance that Fed policymakers will raise rates this month, up from 22% on Tuesday. Adam Sarhan, chief executive of 50 Park Investments in New York, stated that inflation remains public enemy number one for the market and the Fed as investors react negatively to the pressure for tighter monetary policy.
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