US STOCKS-Wall St set for lower open as hot inflation data fuels rate-hike bets

Micron Technology

14/10/2026 14:17

Futures down: Dow 0.20%, S&P 500 0.31%, Nasdaq 0.61%
US inflation rises more than expected in September 
Bank of America slips after lower Q3 profit 
Liquidia surges after settling lawsuits with United Therapeutics
Updates after inflation data
By Tharuniyaa Lakshmi and Purvi Agarwal
Oct 14 (Reuters) - Wall Street's main indexes were set for a lower open on Wednesday after a hotter-than-expected inflation report boosted bets of an interest rate hike this month, while investors parsed more big bank earnings. 
A Labor Department report showed the Consumer Price Index rose 3.7% on an annual basis last month, above estimates of 3.6%, according to economists polled by Reuters. It increased 0.6% on a monthly basis, in line with estimates. 
Traders bolstered bets of a rate hike in October, now seeing a 46% chance of a quarter-point increase compared with a 21.6% chance before the figures, according to LSEG-compiled data. 
"It certainly increases the odds of the Fed raising rates at the October meeting, but I believe they're not going to, because we have never had two rate hikes within two months of midterm election," said Sam Stovall, chief investment strategist at CFRA Research. 
However, Stovall said the Fed had indicated it was going to take a hawkish stance, so the data increased the likelihood of a December hike. 
Markets also assessed another set of bank earnings. Bank of America BAC.N was down 7.3% in premarket trading after the lender's profit fell in the third quarter as it set aside $1.2 billion to cover regulatory fines, while Morgan Stanley MS.N dipped 2.2% despite a rise in quarterly profit. 
Asset manager BlackRock BLK.N gained 2.2% after reporting a jump in third-quarter profit, helped by higher fees from managing client funds. 

        Banks including JPMorgan Chase JPM.N and Goldman Sachs GS.N reported a mixed set of earnings on Monday, suggesting a dealmaking and trading boom that powered record first-half earnings may be slowing, with executives pointing to the bond market rout weighing on activity. 
At 08:48 a.m. ET, Dow E-minis YMcv1 were down 103 points, or 0.2%, S&P 500 E-minis EScv1 were down 24.5 points, or 0.31%, and Nasdaq 100 E-minis NQcv1 were down 186.5 points, or 0.61%. 

        Chip stocks compounded losses after the data. They have been under pressure this week after reports pointed to progress in chip design by China's CXMT 688825.SS that fueled concerns about growing competition.
     Shares of Intel INTC.O and Micron MU.O fell 2.3% and 1.6%, respectively, while Nvidia NVDA.O slipped 1%.
Most "Magnificent Seven" stocks still rose, with Alphabet GOOGL.O gaining 0.9%, while Microsoft MSFT.O and Amazon.com AMZN.O were marginally higher.
The Fed has time to wait and see how markets and the economy evolve after its September rate rise before deciding whether to take any more action, Vice Chair for supervision Michelle Bowman said.
Remarks from Richmond Fed President Tom Barkin and the Fed's Beige Book report on regional economic conditions are also due late in the day.
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. O/R
Among individual movers, Liquidia LQDA.O jumped 37.6% after the drugmaker said it settled all six pending lawsuits with United Therapeutics UTHR.O, ensuring uninterrupted access to Yutrepia, a drug used to treat patients with a form of pulmonary hypertension. 

 (Reporting by Tharuniyaa Lakshmi and Purvi Agarwal in Bengaluru; Editing by Devika Syamnath)
 ((tharuniyaa@thomsonreuters.com))