Dow Jones| Nasdaq | US Stock Market Today | Live: Nasdaq tumbles 500 pts as rate pressure hammers high-flying AI stocks

extract

Business News›Markets›US Stocks›Wall St Guide›Dow Jones| Nasdaq | US Stock Market Today | Live: Nasdaq tumbles 500 pts as rate pressure hammers high-flying AI stocks LIVE BLOG US Stock Market Live Updates: US stocks dip as September inflation data fuels Fed rate-hike bets. Synopsis Dow Jones Today | US Stock Market Live: Hotter-than-expected inflation data sent the Nasdaq to a sharply lower close on Wednesday, with worries about more interest rate hikes from the Federal Reserve pummeling shares of Oracle, CoreWeave and other AI stocks sensitive to higher borrowing costs. The S&P 500 lost 83.96 points, or 1.08%, to end at 7,721.49 points, while the Nasdaq Composite lost 502.90 points, or 1.85%, to 26,701.48. The Dow Jones Industrial Average fell 45.23 points, or 0.09%, to 51,624.87. 1 New Update US Treasuries rallied sharply on Wednesday afternoon, reversing an earlier selloff spurred by the latest hot inflation report and leaving yields on most maturities lower for the day. The turnaround highlighted an increasingly vigorous debate in the market, centering on accelerating consumer price data on the one hand and a string of comments from Federal Reserve officials on the other suggesting that the central bank is not in a rush to hike rates further to try to tame stubborn inflation. Iowa, Kansas and six other states said on Wednesday they had sued OpenAI in courts across the country over harms they say ChatGPT has caused to children, alleging the chatbot has coached children to harm themselves or others. The New York Federal Reserve's operations desk plans to conduct approximately $14.6 billion in reinvestment purchases between October 15 and November 13, it said in a schedule released on Wednesday. Major AI stocks slumped on Wednesday following the latest hot US inflation report, highlighting investor concern about the risks posed by rising borrowing costs in this capital-intensive sector. Among the leading decliners were data center operator CoreWeave, which fell 16%, AI infrastructure provider Nebius, off 11%, cloud computing giant Oracle, down 9%, and AI server seller Dell Technologies, down 11%. Together the declines erased some $80 billion of market value. (Read) The US labor market remained stuck in a low-hire, low-fire state and inflation was intensifying across parts of the country in recent weeks, a Federal Reserve report showed on Wednesday, underscoring what's at stake as the central bank weighs whether to deliver a second straight interest rate hike later this month. While businesses in much of the country have a positive outlook, their "expectations tend to be for slight growth, weighted toward manufacturing and burdened by persistent uncertainties," the Fed said in its latest "Beige Book" report, a compendium of survey-based data and commentary from businesses compiled by its 12 regional banks to provide a read on economic conditions. US stocks fell sharply on Wednesday as hotter-than-expected inflation data strengthened expectations of another Federal Reserve rate hike. The Dow Jones Industrial Average dropped 242.79 points, or 0.47%, to 51,427.31, while the S&P 500 declined 103.69 points, or 1.33%, to 7,701.76. The Nasdaq Composite tumbled 548.41 points, or 2.02%, to 26,655.97. Federal Reserve governor Lisa Cook's lawyers say that a committee set up by the White House last week to investigate an accusation against her is “demonstrably biased," though they did not close the door on the possibility that she would appear before the panel. Lawyer Abbe Lowell also said in a letter Tuesday that Cook would not be able to participate in a hearing Nov. 5 because she “will be executing her official duties as Governor at financial and monetary policy meetings in Europe." US banks reported solid loan and deposit growth in the third quarter, but lenders are paying a premium to retain customer funds in a fiercely competitive, high-interest-rate environment. JPMorgan Chase, Citigroup and Wells Fargo all posted higher net interest income on Tuesday, even as investors worried that soaring bond yields and elevated borrowing costs would stifle loan demand and trigger a flight of deposits. US chipmaker GlobalFoundries is set to build two new semiconductor manufacturing facilities in New York, with up to $21 billion in funding from a US-Japan initiative, the company said Wednesday. Japan would provide the investment and under a separate agreement, the US government will also take a four percent stake in the company, said GlobalFoundries. US President Donald Trump lauded the arrangement in a social media post Wednesday. The US Federal Reserve has room to assess the impact of its September rate increase on markets and the economy before considering another move, Vice Chair for Supervision Michelle Bowman said on Wednesday, Reuters reported. “I don’t feel any urgency for taking further action at this point. We really need to take some time and understand how things will evolve,” Bowman said during the IMF-World Bank meetings in Bangkok. (Read) US President Donald Trump said on Wednesday Taiwan's commitment to buy 30% of the output of a proposed LNG pipeline in Alaska over the next 20 years would amount to between $70 billion and $80 billion. JPMorgan Chase is hiring veteran senior consumer and retail M&A banker Richard Peacock from Bank of America, people familiar with the matter said on Wednesday. Peacock, who joined Bank of America over a decade ago, is the latest in a string of managing directors to leave the United States' second-largest bank. An OpenAI employee who left the ChatGPT maker for Apple sent more than 100 files about an unreleased product to a personal account and later made a presentation about the unreleased product to senior Apple leadership, a new filing in the lawsuit between OpenAI and Apple alleges. In the filing in US federal court in San Jose, California, OpenAI alleged that the presentation happened months ago and that Apple is now making AI products of its own, citing the release of Apple's HomeView product this week. - Shares of neocloud firms Nebius and CoreWeave dropped 15.1% and 9.5%, respectively - CoreWeave stock set to wipe out about a quarter of its value this month, Nebius set to erase almost 20% - Data center operators Applied Digital and IREN down 8.8% and 9.9%, respectively - Shares of debt-laden AI hyperscaler Oracle were down 7.2% and most of its dollar bonds had also declined The Trump administration said on Wednesday it is cutting off Affordable Care Act subsidies for about 189,000 people it identified as having duplicate government coverage or being deceased, a move officials estimate will save taxpayers roughly $738 million this year. US Health Secretary Robert F. Kennedy Jr. said the Centers for Medicare & Medicaid Services identified enrollees in 2026 as holding subsidized coverage on the ACA federal marketplace, also known as Obamacare, while also enrolled in Medicare, Medicaid or the Children's Health Insurance Program. It also identified deceased people still on the subsidy lists. The US dollar hit an 18-month high on Wednesday after stronger-than-expected inflation data revived expectations for a Federal Reserve interest rate hike later this month, highlighting concern that price pressures are broadening across the economy. The US dollar index, a measure of the greenback's strength against a basket of six currencies, rose 0.68% to 102.86, its highest since April 2025, shaking off the previous day's losses. US President Donald Trump's administration has lifted sanctions on Jorge Rodriguez, the head of Venezuela's National Assembly and the brother of the nation's president, a notice posted on the US Treasury Department's website showed on Wednesday. BlackRock rose 2% after the investment company reported stronger profit and revenue for the summer than analysts expected. Customers poured a net USD 205 billion into BlackRock's funds, including iShares exchange-traded funds, from July through September to bring its total assets under management to USD 15.5 trillion. BlackRock makes money by charging fees on those dollars. Yields on US Treasuries climbed across durations on Wednesday after consumer prices accelerated in September ramping up expectations that the Federal Reserve will have to increase interest rates to try to tame stubborn inflation. Yields on 2-year Treasuries climbed to their highest levels in more than two weeks after the Labor Department's Bureau of Labor Statistics said the Consumer Price Index rose 0.6% last month after climbing 0.4% in August. In the 12 months through September, the CPI advanced 3.7% compared with economist expectations for 3.6% and a 3.4% increase in August. A Federal Reserve interest-rate decision later this month may be a closer call than previously thought, traders bet on Wednesday, after Labor Department data showed consumer prices were up 3.7% last month from a year earlier, well above the Fed's 2% target and moving in the wrong direction. Higher gasoline prices from the Middle East war were a main driver. Excluding volatile food and energy prices, the core consumer price index (CPI) was up 2.6%, more than the 2.5% economists polled by Reuters had projected. The Dow Jones Industrial Average fell 85.11 points, or 0.16%, at the open to 51,584.99. The S&P 500 fell 31.3 points, or 0.40%, at the open to 7,774.18, while the Nasdaq Composite dropped 172.7 points, or 0.63%, to 27,031.64 at the opening bell. Netflix is cutting about 6% of its workforce, or roughly 1000 jobs, the Wall Street Journal reported on Wednesday, citing an email sent to employees. This marks its biggest round of layoffs since 2022, as the streaming giant faces intense competition for users' time in a consolidated media market. Gold fell over 1% on Wednesday, extending losses for a third straight session, as a stronger-than-expected inflation reading increased US Federal Reserve rate hike bets for this month. Spot gold dropped 1.7% to $4,086.06 per ounce by 9:03 a.m. EDT (1303 GMT), its lowest since October 7. US gold futures for December delivery fell 1.6% to $4,108.60 per ounce. The dollar rallied, while US Treasury yields shot higher and stock futures fell on Wednesday, after data showed consumer inflation picked up more quickly than expected in the world's largest economy last month, firming up expectations for another rate rise as early as this month. The dollar rose 0.3% against a basket of currencies, while US 2-year Treasury yields, which are most sensitive to shifts in expectations for inflation and monetary policy, leapt 7 basis points on the day to 4.872%, from around 4.77% earlier on. The US Federal Reserve has time to wait and see how financial markets and the economy evolve after its September rate rise before deciding whether to take any more action, its Vice Chair for Supervision, Michelle Bowman, said on Wednesday. "I don't feel any urgency for taking further action at this point; we really need to take some time and understand how things will evolve," Bowman said during the IMF-World Bank meetings in Bangkok. US Treasury yields rose after consumer inflation data came in hotter than expected on Wednesday as gasoline prices surged and traders priced in a higher likelihood the Federal Reserve would raise rates. The yield on the benchmark US 10-year Treasury note rose 6.6 basis points to 5.283%. The yield on the 30-year bond rose 2.9 basis points to 5.592%. The two-year US Treasury yield, which typically moves in step with interest rate expectations for the Fed, rose 10.6 basis points to 4.899% US consumer prices accelerated in September amid a surge in gasoline costs, dealing another blow to President Donald Trump and his Republican Party ahead of the November 3 midterm elections and putting an interest rate increase later this month back on the radar. The Consumer Price Index rose 0.6% last month after climbing 0.4% in August, the Labor Department's Bureau of Labor Statistics said on Wednesday. In the 12 months through September, the CPI advanced 3.7% after rising 3.4% in August. A Federal Reserve interest-rate decision later this month may be a closer call than previously thought, traders bet on Wednesday, after Labor Department data showed consumer inflation last month rose 3.7%, faster than expected. Traders had priced interest-rate futures for about a 22% chance of an October rate hike. After the report, which also showed faster underlying inflation than economists had anticipated, the implied probability of a rate hike at the Fed's October 27-28 meeting rose to around 40%. Bank of America's profit fell in the third quarter as it set aside $1.2 billion to cover fines by US regulators over widespread failures to detect potential money laundering and other illicit activity. Oil prices edged higher on Wednesday, with Brent crude holding above the $100-a-barrel mark after two vessels were struck in the Strait of Hormuz and Iranian officials told Reuters they were deploying new tactics to target ships. New York Fed President John Williams says the central bank may need to raise interest rates once more this year to contain inflation but sees no need for further hikes in 2027. Investors also await remarks from Richmond Fed President Tom Barkin and the Fed’s Beige Book report on regional economic conditions later in the day. US chip stocks trade slightly lower after a sharp pullback earlier this week, as reports of advances in chip design by China’s CXMT raise concerns about intensifying competition. Intel falls 1.6%, Micron loses 1.1% and Nvidia slips 0.6%, while most “Magnificent Seven” stocks rise, led by a 1.3% gain in Alphabet. Microsoft and Amazon edge higher. US stock futures trade mostly higher on Wednesday as AI-linked shares stabilize after a recent selloff, while elevated oil prices keep investors cautious ahead of key inflation data and another round of major bank earnings. At 7:28 a.m. ET, Dow futures rise 141 points, or 0.27%, and S&P 500 futures gain 11.5 points, or 0.15%, while Nasdaq 100 futures fall 50.75 points, or 0.16%. US financial stocks diverge in premarket trading, with Bank of America falling 4.2% after its third-quarter profit declines as the lender sets aside $1.2 billion for regulatory fines. Morgan Stanley edges lower despite higher profit, while BlackRock jumps 4.9% as increased fund-management fees lift its quarterly earnings. The results add to signs that the dealmaking and trading boom may be losing momentum amid a bond-market rout.