Dow Jones| Nasdaq | US Stock Market Today | Live: Nasdaq falls 1% as inflation gets worse; bank stocks in focus

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US Stock Market Live Updates: US stocks dip as September inflation data fuels Fed rate-hike bets.

Dow Jones Today | US Stock Market Live: Wall Street’s main indexes trade lower on Wednesday as hotter-than-expected inflation data strengthens expectations for another interest-rate increase this month. At the same time, investors assess the latest earnings from major banks.

The Dow Jones Industrial Average fell 85.11 points, or 0.16%, to 51,584.99. The S&P 500 fell 31.3 points, or 0.40%, to 7,774.18​, while the Nasdaq Composite dropped 172.7 points, or 0.63%, to 27,031.64. Meanwhile, the Fed is seeking to curb inflation after raising its benchmark rate last month for the first time in three years. Higher interest rates increase borrowing costs for consumers and businesses, slowing economic activity and easing price pressures.

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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.