US STOCKS-Wall St slides as hot CPI data fuels rate-hike bets; chips, banks weigh

Micron Technology

14/10/2026 15:39

Indexes down: Dow 0.06%, S&P 500 0.60%, Nasdaq 0.78%
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 for market open
By Tharuniyaa Lakshmi and Purvi Agarwal
Oct 14 (Reuters) - Wall Street's main indexes edged lower 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. 
Data showed US consumer prices accelerated in September amid a surge in gasoline costs, leading traders to bolster bets of a rate hike in October. They now see 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 Federal Reserve 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.
Stovall said given the Fed had taken a hawkish stance on monetary policy, the data makes a December rate hike increasingly likely. 
Markets also digested another round of bank earnings. Bank of America BAC.N was down 8.5% 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 3.4% despite a rise in quarterly profit.  
The S&P 500 Banks index .SPXBK fell 2.4% to its lowest level in over four months. 
Asset manager BlackRock BLK.N gained 2% after reporting a jump in third-quarter profit, helped by higher fees from managing client funds.
At 10:09 a.m. ET, the Dow Jones Industrial Average .DJI fell 32.80 points, or 0.06%, to 51,637.30, the S&P 500 .SPX lost 46.65 points, or 0.60%, to 7,758.80 and the Nasdaq Composite .IXIC lost 216.07 points, or 0.78%, to 26,988.31. 
Seven of the 11 major S&P 500 sectors declined. Sectors considered traditionally defensive rose, with consumer staples .SPLRCS and healthcare .SPXHC stocks up 0.9% and 1.7%, respectively. 

        The S&P 500 technology index .SPLRCT was trading at over two-week lows, as chip stocks came under pressure again. They lost ground on Tuesday after reports pointing to progress in chip design by China's CXMT 688825.SS fueled competition concerns.
     Shares of Intel INTC.O and Micron MU.O fell 2.6% and 1%, respectively, while Nvidia NVDA.O slipped 1.7%.
Most "Magnificent Seven" stocks declined, barring Alphabet GOOGL.O and Apple AAPL.O, which rose 0.2% and 0.9%, respectively. 
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 28% 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. 
Declining issues outnumbered advancers by a 5.57-to-1 ratio on the NYSE and by a 3.3-to-1 ratio on the Nasdaq. 
The S&P 500 posted 11 new 52-week highs and 9 new lows while the Nasdaq Composite recorded 16 new highs and 309 new lows.

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