US stocks fell on Wednesday as stronger-than-expected inflation data renewed concerns about Federal Reserve interest rates, while losses in artificial intelligence stocks weighed heavily on the Nasdaq. The S&P 500 dropped 1.11% to 7,718.94, while the Nasdaq Composite slid 1.88% to 26,692.87. The Dow Jones Industrial Average edged down 48.62 points, or 0.09%, to 51,621.48, supported by gains in healthcare stocks.
US consumer prices rose 0.6% in September, taking annual inflation to 3.7%, above expectations of 3.6%. Core inflation, which excludes food and energy, increased 0.3% for the month and 2.6% annually, also exceeding forecasts. The figures reinforced concerns that persistent inflation could prompt further Federal Reserve tightening later this year.
Technology stocks led the declines amid growing concerns about debt-funded investment in artificial intelligence infrastructure. CoreWeave plunged more than 15%, Oracle fell almost 9%, while AMD and Sandisk lost more than 5% each. Micron Technology and Intel both declined around 4%.
Bank stocks also weakened, with Bank of America falling nearly 5% after disappointing quarterly revenue, while Morgan Stanley slipped almost 3% despite beating earnings expectations. Oil prices moved higher, with West Texas Intermediate crude gaining 1.01% to US$95.09 a barrel.
Australian Market Outlook
Australian shares are set to open lower, with S&P/ASX 200 futures down 29 points, or 0.3%, to 8,716.
The weaker lead follows a sharp sell-off in US technology stocks, while stronger inflation has renewed concerns about further Federal Reserve rate increases. The US dollar also climbed to an 18-month high, adding to pressure on global markets.
Locally, attention turns to September employment figures due at 11.30am AEDT, with the unemployment rate expected to remain broadly steady. Investors will also monitor US corporate earnings and remarks from Federal Reserve chairman Kevin Warsh later today.
The weaker lead follows a sharp sell-off in US technology stocks, while stronger inflation has renewed concerns about further Federal Reserve rate increases. The US dollar also climbed to an 18-month high, adding to pressure on global markets.
Locally, attention turns to September employment figures due at 11.30am AEDT, with the unemployment rate expected to remain broadly steady. Investors will also monitor US corporate earnings and remarks from Federal Reserve chairman Kevin Warsh later today.
