US September CPI Rises 3.7 Percent and Nasdaq Drops 1.88 Percent
The United States September Consumer Price Index rose 3.7 percent compared to the same month last year, surpassing both August’s 3.4 percent increase and the market consensus expectation of 3.6 percent, 한국경제신문 reported.
Energy Price Surge Drives Overall Inflation Higher
Energy and food prices pushed core inflation upward, with the core Consumer Price Index advancing 2.6 percent annually and 0.3 percent monthly, exceeding projections.
Gasoline prices jumped 9.1 percent within a single month. This sharp increase stemmed directly from escalating energy costs fueled by conflict in the Middle East.
Federal Reserve Rate Hike Probability Jumps After Data Release
Stronger-than-expected inflation pressures amplified expectations that the United States central bank might pursue an additional benchmark interest rate increase at the upcoming Federal Open Market Committee meeting scheduled for October 27 to 28.
Data from the Chicago Mercantile Exchange FedWatch tool showed the probability of an October rate hike spiking to 51.5 percent immediately following the consumer price data release, compared to 17.7 percent a week earlier and 22.1 percent the previous day. Although the probability later receded into the 30 percent range, market apprehension regarding monetary tightening intensified significantly.
Market participants previously anticipated an interest rate freeze in October followed by an increase in December. The latest inflation figures prompted observations that the timing of a rate increase could be accelerated.
Wall Street Indices Fall as Nasdaq 100 Index Drops Below 30,000
All three major New York stock exchange indices closed lower on October 14. The Dow Jones Industrial Average dropped 48.62 points, or 0.09 percent, to finish at 51,621.48.
The S&P 500 index fell 86.51 points, or 1.11 percent, to 7,718.94. The Nasdaq Composite index tumbled 511.51 points, or 1.88 percent, ending at 26,692.87.
Large-cap technology shares experienced heavy selling. The Nasdaq 100 index plunged 2.02 percent to close at 29,950.82, breaking below the 30,000 threshold. Semiconductor stocks declined alongside the broader tech sector, while the Cboe Volatility Index surged 10.64 percent to 16.89.