Stocks fell as hotter inflation revived bets on a Fed rate hike. Worries about AI debt deepened a chip selloff.
Hot inflation revives hike bets. Consumer prices rose 3.7% in the year to September, above the 3.6% forecast, as gas prices jumped. Traders doubled the odds of an October Fed hike to about 44%. Higher rates hit richly valued tech stocks hardest.
AI debt fears hit chips. Bond yields near 15% at an AI cloud provider revived worries about debt-funded data centers, sinking Oracle (−8.8%) and Nvidia (−3.2%) as semis fell a sixth straight day.
What’s next. The Fed meets October 27–28.