Hot Inflation + Rate-Hike Fears (Tech/AI Selloff)
Inflation just slapped the AI trade in the face — and the market is still reeling.
Yesterday’s September CPI came in hotter than expected at 3.7% year-over-year (vs. 3.6% forecast and 3.4% previously). Core was also sticky. That immediately raised the odds of more Fed rate hikes, sending the Nasdaq down ~1.9% and the S&P 500 down ~1.1% — its worst day since July.
AI and semi names took the biggest hits (Nvidia, AMD, CoreWeave and others sold off hard) because higher rates make the massive AI spending boom more expensive to finance. Futures are still weak this morning as the selloff continues.
Watch today’s PPI, retail sales, and jobless claims at 8:30 AM ET for the next signal on whether inflation is cooling or staying hot.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
either analysts rrally sucks....or we are dead tonight