A hotter-than-expected September CPI report and a deepening selloff in AI names sent the S&P 500 down more than 1% for the first time in 54 sessions, with the Nasdaq and small caps falling nearly 2%.
The October edition provides hawks a lot more to work with than August did.
Core rises 0.33% from August, a second hot monthly print, as gains spread well beyond energy. October rate-hike odds more than double.
Memory makers fell again and the big banks missed Street expectations but Mag-7 strength kept the S&P 500 flat.
September existing-home sales rose 1.5% from August, but NAR’s chief economist cautioned Q4 closings could be ‘measurably down’ as affordability slips year-over-year for the first time this year.
NFIB’s Small Business Optimism Index slipped to a three-month low as fewer expect conditions to improve.
Eight of 11 sectors rose and the Dow Jones Industrial Average gained for a third straight day, but another selloff in chipmakers kept the S&P 500 little changed and the Nasdaq in the red on the lightest volume of the year.
The Fed’s triennial Survey of Consumer Finances showed income gaps narrowed while wealth gaps widened. Debt stress rose even as more families reported increased spending.
We finally got our broadening in equities as yields softened but a packed calendar including CPI, bank earnings and Warsh will put it to the test
Nine of 11 sectors rose, powering the S&P higher despite semiconductor weakness. Small-caps, though, posted a fifth straight weekly loss for the first time since 2022.
