US Stock Market Move | CPI Exceeds Expectations, Intensifying Rate Hike Bets; Nasdaq Falls 0.6%, Most Star Tech Stocks Weaken

On Wednesday, the three major US stock indices opened lower collectively, with the Nasdaq falling 0.6%. Most star tech stocks weakened, as Advanced Micro Devices (AMD.US) dropped nearly 4%, SpaceX (SPCX.US) and SanDisk (SNDK.US) fell over 2%, and NVIDIA Corporation (NVDA.US), Meta (META.US), and Tesla, Inc. (TSLA.US) declined over 1%. On the news front, the US September unadjusted core CPI annual rate rose to 2.6%, a new high since June this year, exceeding market expectations of 2.5%. The US September seasonally adjusted core CPI monthly rate came in at 0.3%, above market expectations of 0.2%. The US September unadjusted CPI annual rate recorded 3.7%, a new high since May this year, exceeding market expectations of 3.6%. The US September unadjusted CPI monthly rate recorded 0.6%, a new high since April this year, in line with expectations. Following the release of the CPI data, the market increased bets on a Federal Reserve rate hike in October and added wagers on three more Fed rate hikes before the end of 2027. Ol Sonola, head of US economic research at Fitch Ratings, said this inflation report is a red flag warning for the Federal Reserve. Energy inflation pushed up the headline figure as expected, but the real problem is that core inflation (super core services inflation) remains stuck above 3%. Higher energy costs are beginning to seep into broader services prices, increasing the risk that this inflation outbreak persists. A rate hike at the end of the month is now clearly in the discussion, but December remains the more likely timing for action.