[BRIEFING.COM] The stock market finished broadly lower on Wednesday as accelerating inflation raised concerns about the Federal Reserve's policy outlook, while persistent weakness in semiconductor and other technology stocks weighed heavily on the major averages. The Nasdaq Composite (-1.9%) suffered the steepest decline, followed by the S&P 500 (-1.1%), while the DJIA (-0.1%) finished with a relatively modest loss thanks to strength in defensive stocks.

The September Consumer Price Index report set the tone for the session, showing that headline inflation accelerated to 3.7% year-over-year from 3.4% in August, while core inflation increased to 2.6% from 2.4%. On a monthly basis, total CPI rose 0.6%, matching expectations, while core CPI increased 0.3%, slightly above the Briefing.com consensus estimate of 0.2%. The acceleration in annual inflation, moving further away from the Fed's 2.0% target, fueled concerns about additional monetary policy tightening. The CME FedWatch tool showed the probability of a 25-basis-point rate hike at the October FOMC meeting jumping from 22.1% yesterday to nearly 50% immediately following the report.

Treasury yields also surged in response, with yields on the 3-, 5-, and 7-year notes reaching fresh 2026 highs before steadily retreating throughout the session. The recovery coincided with a moderation in rate hike expectations, which moved back toward yesterday's levels as the day progressed. Notably, the reversal in yields provided little relief for equities, which continued sliding through the afternoon despite the improving Treasury backdrop. The 2-year note yield settled up one basis point to 4.80%, and the 10-year note yield settled down three basis points to 5.19%.

The S&P 500 briefly fell below the 7,700 level and its 50-day moving average near 7,706 before recovering somewhat from its session lows. Technology stocks remained at the center of the selling pressure throughout the day. The information technology sector (-2.6%) finished at the bottom of the S&P 500 leaderboard, with the PHLX Semiconductor Index plunging 4.3% and extending its recent stretch of pronounced weakness. Mega-cap stocks also struggled, reflected in a 2.1% decline in the Vanguard Mega Cap Growth ETF, while the iShares Expanded Tech-Software Sector ETF fell 3.0%.

The retreat was especially pronounced among AI and data center infrastructure companies, where concerns about rising capital costs and the ability to support ambitious expansion plans weighed heavily on sentiment. CoreWeave (CRWV 65.78, -12.03, -15.46%) was a particular laggard amid reports that its unsecured debt maturing in 2032 had fallen to levels associated with financial distress, adding to existing concerns about financing requirements across the industry. Dell (DELL 507.45, -65.02, -11.36%) and Hewlett Packard Enterprise (HPE 63.17, -5.64, -8.20%) also faced sharp selling pressure after Barclays downgraded both stocks to Equal Weight from Overweight.

Weakness extended into other growth-oriented areas, with the communication services (-1.7%) and consumer discretionary (-1.1%) sectors posting sizable declines. Airline stocks were particularly weak as elevated fuel costs and accelerating inflation raised concerns about profitability and travel demand. The industrials sector (-1.0%) also struggled, while the Russell 2000 (-1.9%) and S&P Mid Cap 400 (-1.3%) underperformed the S&P 500, reflecting the broader market's difficulties.

The financials sector (-0.6%) also finished lower amid mixed reactions to quarterly earnings. Bank of America (BAC 51.42, -2.54, -4.71%) declined after weaker trading and investment banking revenue, an earnings miss, and a regulatory charge overshadowed continued net interest income growth. Morgan Stanley (MS 181.60, -5.04, -2.70%) also retreated despite topping earnings expectations, while BlackRock (BLK 1074.17, +8.05, +0.76%) held up relatively well following its quarterly report.

In contrast, defensive stocks attracted considerable buying interest as investors sought shelter from the broader retreat. The health care sector (+2.5%) and consumer staples sector (+2.4%) were the clear leaders, with strength in UnitedHealth (UNH 395.76, +18.00, +4.76%), Merck (MRK 147.36, +5.38, +3.79%), Walmart (WMT 116.16, +3.88, +3.46%), and Coca-Cola (KO 91.80, +1.69, +1.88%) helping the DJIA avoid a steeper decline. Discount and value-oriented retailers also outperformed, reflecting expectations that persistent inflation could encourage consumers to shift more spending toward lower-priced essentials.

The energy sector (+0.8%) was another outperformer as WTI crude oil futures settled $1.05 higher (+1.1%) at $95.11 per barrel.

Ultimately, Wednesday's session reinforced the divergence between technology and defensive stocks, with the recovery in Treasury prices doing little to improve sentiment toward growth-oriented companies. The losses also left all three major averages in negative territory for the week, although the DJIA remains only modestly lower compared with the more substantial declines in the S&P 500 and Nasdaq Composite.

Attention now turns to Thursday's September Producer Price Index report for further insight into inflation trends, alongside earnings from Taiwan Semiconductor Manufacturing (TSM 430.00, -15.12, -3.40%), which could influence sentiment toward the recently battered semiconductor group.

Reviewing today's data: 

• Total CPI increased 0.6% month-over-month (Briefing.com consensus: 0.6%), led by a 5.2% jump in the energy index, following a 0.4% increase in August. The September increase left total CPI up 3.7% year-over-year versus 3.4% in August. Core CPI, which excludes food and energy, increased 0.3% month-over-month (Briefing.com consensus: 0.2%), pushed by a 0.4% increase in the shelter index, following a 0.3% increase in August. That left core CPI up 2.6% year-over-year versus 2.4% in August.
  
  • The key takeaway from the report is the acceleration in inflation away from the Fed's 2.0% inflation target. That is going to accelerate concerns about a possible tightening of Fed policy at the October FOMC meeting, not to mention deficit worries as cost-of-living adjustments for 2027 for SSI recipients are on track to see their largest increase in three years.
• The Fed's Beige Book for October noted that economic activity in seven Districts was essentially muted while just two Districts reported moderate growth. The Dallas District observed robust manufacturing growth while six other Districts saw modest to moderate manufacturing growth. Consumer spending was little changed in general while employment levels were also steady. Three Districts reported robust growth in prices while eight observed moderate growth.
• The weekly MBA Mortgage Index fell 2.7% to follow last week's 4.2% decrease. The Purchase Index was down 4.0% while the Refinance Index was up 0.5%.

[BRIEFING.COM] The major averages remain little changed from previous levels with just half an hour left in today's session.

The market will have more AI and semiconductor-related catalysts to navigate, with CNBC reporting that Anthropic is set to disclose new revenue numbers to investors today ahead of its IPO.

Additionally, investors will receive earnings results from Taiwan Semiconductor Manufacturing (TSM 430.04, -15.08, -3.39%) before the open tomorrow.

The PHLX Semiconductor Index is currently down 4.0%, extending its week-to-date loss to 6.8%

[BRIEFING.COM] The S&P 500 (-1.3%), Nasdaq Composite (-2.0%), and DJIA (-0.4%) continue to chart session lows as the market enters the final hour of the session.

Despite the broad weakness, discount and value-oriented retailers are outperforming the broader market today, with Walmart (WMT 115.58, +3.30, +2.94%), Costco (COST 975.98, +21.35, +2.24%), Ollie's Bargain Outlet (OLLI 91.72, +3.39, +3.84%), Dollar General (DG 129.81, +4.81, +3.85%), Dollar Tree (DLTR 120.73, +4.45, +3.83%), and BJ's Wholesale (BJ 102.63, +3.06, +3.07%) all posting solid gains.

The strength reflects a broader rotation toward defensive businesses following September's CPI report, which showed inflation accelerating to 3.7% year-over-year. Rising living costs could encourage more consumers to seek lower-priced groceries and household essentials, potentially benefiting retailers positioned to capture spending from increasingly budget-conscious shoppers.

[BRIEFING.COM] The S&P 500 (-1.3%) trades on its low, slipping below its 50-day moving average (7706), with eight sectors holding losses and technology (-2.6%) at the bottom of today's leaderboard.

The Nasdaq (-2.0%) underperforms due to the tech-heavy focus of the index while the Dow (-0.4%) outperforms, withstanding some of today's selling pressure. In fact, just over half of the components of the price-weighted average trade in positive territory, but that does not include the three highest priced listings-Goldman Sachs (GS 868.36, -23.55, -2.64%), Caterpillar (CAT 744.45, -28.33, -3.67%), and Microsoft (MSFT 534.08, -9.38, -1.73%).

On the upside, UnitedHealth (UNH 392.90, +15.14, +4.01%) is the best performer in the Dow, followed closely by Merck (MRK 147.21, +5.23, +3.68%) and Amgen (AMGN 427.36, +14.52, +3.52%). Fittingly, the health care sector (+2.4%) is today's best performing group.

[BRIEFING.COM] Things feel uneasy today, primarily because stocks retreated at the open, bothered by the spike in Treasury yields that followed today's September CPI report. The uneasy feeling has gotten more pronounced, though, with stocks steadily sliding to session lows as Treasury yields have steadily dropped from session highs.

The 10-yr note yield spiked from 5.17% to 5.32% immediately after the CPI report, but it has since backed down to 5.22%. The S&P 500, for its part, is down 1.4% and has broken below the 7,700 level.

An ugly showing by the semiconductor stocks, not just today but over the course of the past six sessions in which the Philadelphia Semiconductor Index has dropped 11.6%, has been an additional weight on market sentiment.

The SOX Index is down 4.3% today, with concerns about AI financing costs and debt repayment capabilities exacerbating the retreat. AI/data center infrastructure company CoreWeave (CRWV 64.92, -12.90, -16.57%) is at the heart of those concerns. It is getting hit hard, with Bloomberg reporting that its unsecured debt due in 2032 has fallen to levels that typically indicate distress, which Elon Musk summed up simply when he said "yikes."

The CBOE Volatility Index is up 10.9% to 16.93.

[BRIEFING.COM] The major averages remain near session lows in the early afternoon, with airline stocks facing particularly sharp selling pressure as elevated fuel costs and accelerating inflation raise concerns about profitability and consumer demand.

American Airlines (AAL 11.76, -0.74, -5.88%), United Airlines (UAL 98.24, -4.99, -4.83%), Delta Air Lines (DAL 76.42, -3.16, -3.97%), Southwest Air (LUV 39.32, -1.34, -3.28%), American Airlines (AAL 11.77, -0.73, -5.84%), and JetBlue Airways (JBLU 3.08, -0.26, -7.91%) are all posting sizable losses. Brent crude oil trading near $106 per barrel is adding to concerns about fuel expenses, which have already prompted Delta to lower its FY26 earnings guidance.

Meanwhile, September's CPI report showed airfares rising 22.4% year-over-year, reflecting airlines' efforts to offset higher operating costs through ticket prices. However, further fare increases could weigh on travel demand, particularly as accelerating inflation and the prospect of higher interest rates place additional pressure on consumers' discretionary spending.

[BRIEFING.COM] The stock market is facing broad selling pressure at midday after September's CPI report showed inflation accelerating further away from the Fed's 2.0% target, fueling concerns about additional policy tightening and weighing heavily on technology and other growth-oriented stocks. The S&P 500 (-1.0%) and Nasdaq Composite (-1.5%) are posting sizable losses, while the DJIA (-0.3%) is holding up relatively well thanks to strength in several defensive components.

The September CPI report showed headline inflation rising 0.6% month-over-month, in line with expectations, while core CPI increased 0.3%, exceeding the Briefing.com consensus estimate of 0.2%. More importantly, headline CPI accelerated to 3.7% year-over-year from 3.4% in August, while core CPI rose to 2.6% from 2.4%, reinforcing concerns about the direction of inflation. The report prompted a sharp repricing of rate hike expectations, with the CME FedWatch tool now assigning a 37.1% probability to a 25-basis-point hike at the October FOMC meeting, up from 22.1% yesterday.

Treasury yields jumped in response before easing somewhat from their highs, leaving the 10-year note yield up two basis points at 5.24%. The resulting pressure on growth stocks has been particularly evident in the information technology sector (-2.2%), where semiconductor stocks are facing another sharp retreat following yesterday's rebound. The PHLX Semiconductor Index is down 3.5%, while the Vanguard Mega Cap Growth ETF (-1.6%) reflects broader weakness among heavily weighted technology names.

AI and data center infrastructure stocks are also under considerable pressure, with CoreWeave (CRWV 66.35, -11.46, -14.73%) among the hardest hit as rising borrowing costs compound concerns about the substantial capital requirements and lofty growth expectations associated with AI infrastructure expansion. Elsewhere, Dell (DELL 510.61, -61.86, -10.81%) and Hewlett Packard Enterprise (HPE 63.84, -4.96, -7.22%) are notable laggards after Barclays downgraded both stocks to Equal Weight from Overweight.

The selling pressure extends well beyond technology, with the consumer discretionary (-1.4%), communication services (-1.3%), and industrials (-1.3%) sectors also posting sizable losses. Rate-sensitive areas are facing additional pressure from elevated Treasury yields, with the iShares U.S. Home Construction ETF down 2.6%. The Russell 2000 (-1.9%) and S&P Mid Cap 400 (-1.4%) are also underperforming, underscoring the widespread nature of today's retreat.

The financials sector (-1.0%) is also struggling amid mixed reactions to quarterly earnings. Bank of America (BAC 51.14, -2.82, -5.22%) is a notable laggard after an earnings miss and weaker trading and investment banking revenue overshadowed continued net interest income growth. Morgan Stanley (MS 180.35, -6.29, -3.37%) is also trading lower despite exceeding earnings expectations, while BlackRock (BLK 1065.60, -0.52, -0.05%) is bucking the weakness following its better-than-expected results.

There are some notable pockets of strength, particularly in defensive areas of the market. The health care sector (+2.1%) is the clear leader, followed by the consumer staples sector (+1.6%). UnitedHealth (UNH 387.75, +9.99, +2.64%), Walmart (WMT 114.84, +2.56, +2.28%), Merck (MRK 147.16, +5.18, +3.65%), and Coca-Cola (KO 91.64, +1.53, +1.70%) are among the outperformers in the DJIA, helping limit its decline despite the weakness elsewhere.

The energy sector (+0.8%) is also holding up well as WTI crude oil rises $1.48 (+1.6%) to $95.62 per barrel.

The latest retreat has pushed all three major averages into negative territory for the week, although the divergence in performance remains notable. The DJIA is only modestly lower on a week-to-date basis, supported by defensive strength, while the S&P 500 and Nasdaq Composite are facing considerably steeper weekly losses as selling pressure remains concentrated in technology and other growth-oriented stocks.

Reviewing today's data:

• 10/10 MBA Mortgage Applications Index -2.7% (Prior -4.2%)
• Total CPI increased 0.6% month-over-month (Briefing.com consensus: 0.6%), led by a 5.2% jump in the energy index, following a 0.4% increase in August. The September increase left total CPI up 3.7% year-over-year versus 3.4% in August. Core CPI, which excludes food and energy, increased 0.3% month-over-month (Briefing.com consensus: 0.2%), pushed by a 0.4% increase in the shelter index, following a 0.3% increase in August. That left core CPI up 2.6% year-over-year versus 2.4% in August.
  • The key takeaway from the report is the acceleration in inflation away from the Fed's 2.0% inflation target. That is going to accelerate concerns about a possible tightening of Fed policy at the October FOMC meeting, not to mention deficit worries as cost-of-living adjustments for 2027 for SSI recipients are on track to see their largest increase in three years.

[BRIEFING.COM] The S&P 500 (-1.1%), Nasdaq Composite (-1.7%), and DJIA (-0.3%) are charting session lows just after midday as selling pressure across technology stocks continues to intensify.

The information technology sector (-2.2%) remains a primary source of weakness, with the PHLX Semiconductor Index down 4.0%. AI and data center infrastructure names are facing particularly sharp losses, with CoreWeave (CRWV 65.51, -12.30, -15.81%), Nebius Group N.V. (NBIS 185.66, -21.20, -10.25%) 188.59, -18.27, -8.83%), IREN Limited (IREN 31.11, -3.69, -10.61%) 31.74, -3.06, -8.79%), TeraWulf (WULF 11.86, -1.34, -10.18%)11.92, -1.28, -9.73%), and Applied Digital (APLD 20.20, -2.24, -9.98%) 20.72, -1.72, -7.66%) falling to multi-week lows. The weakness reflects concerns about rising financing costs following this morning's hot September CPI report. Higher borrowing costs are compounding existing concerns about lofty AI growth expectations and the potential for evolving technology to disrupt current business models.

Elsewhere in the sector, Hewlett Packard Enterprise (HPE 63.56, -5.25, -7.63%) and Dell (DELL 505.99, -66.48, -11.61%) are notable laggards after Barclays downgraded both stocks to Equal Weight from Overweight.

[BRIEFING.COM] Although premarket indications pointed to another mixed, subdued opening, stocks came under considerable selling pressure at the start of the session after the September CPI (0.6%; Briefing.com consensus: 0.6%) and core CPI (0.3%; Briefing.com consensus: 0.2%) reports showed both headline and core inflation accelerating on a year-over-year basis, moving further away from the Fed's 2.0% target.

The acceleration in inflation prompted a sharp increase in rate hike expectations, with the CME FedWatch tool now assigning a 43.7% probability to a 25-basis-point hike at the October FOMC meeting, up from 22.1% yesterday. Treasury yields also moved higher in response, although they have since moderated somewhat, leaving the 10-year note yield up three basis points at 5.25%.

The major averages remain broadly lower, with continued weakness in mega-cap and technology stocks weighing on the S&P 500 (-0.8%) and Nasdaq Composite (-1.1%). The DJIA (flat), meanwhile, is holding near its unchanged level for both the session and the week, supported by relative strength in select defensive and energy stocks.

The selling pressure is widespread, with decliners outpacing advancers by roughly 4-to-1 on the NYSE and more than 3-to-1 on the Nasdaq. The heavily weighted information technology sector (-1.6%) is the worst-performing S&P 500 sector, pressured by weakness in semiconductor stocks, while the Vanguard Mega Cap Growth ETF (-1.3%) also underperforms. Other rate-sensitive areas of the market are facing considerable pressure, including homebuilders, with the iShares U.S. Home Construction ETF (-2.4%) declining sharply, while the Russell 2000 (-1.5%) trails the major averages.

[BRIEFING.COM] The major averages continue to drift lower.

Mega-cap stocks are a source of pressure today, weighing on the index level. The Vanguard Mega Cap Growth ETF is down 1.1 % as five of the "Magnificent Seven" names trade lower. Meta Platforms (META 745.72, -16.78, -2.20%) is a laggard after a solid start to the week that still leaves is up nearly 4% week-to-date, while Tesla (TSLA 368.94, -6.30, -1.68%) also underperforms and NVIDIA (NVDA 223.89, -4.63, -2.03%) lags amid broad weakness across semiconductor stocks.

Similar to yesterday's session, Apple (AAPL 344.39, +3.12, +0.91%) is charging to new record highs, helping soften relatively steep losses in the information technology sector (-1.4%), while Alphabet (GOOG 350.04, +0.52, +0.15%) clings to a slight gain.

[BRIEFING.COM] The S&P 500 (-0.6%) and Nasdaq Composite (-0.8%) have stabilized following their opening declines, while the DJIA continues to hover near its flat line.

The financials sector (-1.3%) is the worst-performing S&P 500 sector so far, weighed down by negative reactions to quarterly earnings from several major firms. Bank of America (BAC 49.78, -4.18, -7.75%) is selling off after weaker trading and investment banking revenue, an earnings miss, and a $1.2 billion regulatory charge overshadowed continued net interest income growth. Morgan Stanley (MS 181.08, -5.56, -2.98%) is also trading lower despite exceeding earnings expectations, as its results showed a sequential slowdown in capital markets activity.

Meanwhile, BlackRock (BLK 1083.14, +17.02, +1.60%) is bucking the weakness following a strong Q3 report, supported by broad client inflows and improved profit margins.

[BRIEFING.COM] Stocks are off to a mostly lower start this morning, with continued semiconductor weakness weighing on the Nasdaq Composite (-0.8%) and S&P 500 (-0.6%), while several defensive pockets of strength keep the DJIA (+0.1%) modestly higher.

While semiconductor stocks recovered the bulk of yesterday's weakness, the PHLX Semiconductor Index is down 2.4% this morning, weighing on the information technology sector (-1.1%).

Mega-cap tech is mostly lower this morning, partly due to the release of the September Consumer Price Index, which showed both total and core CPI rising year over year. In turn, the CME FedWatch Tool now puts the Fed's next policy decision at a coinflip, after showing roughly 80% odds of keeping rates steady at the October FOMC meeting.

Treasury yields are also moving higher, which weighs on the rate-sensitive utilities (-0.9%), real estate (-0.8%), and consumer discretionary (-0.8%) sectors.

The financials sector (-1.2%) is also a laggard, with Bank of America (BAC 49.62, -4.34, -8.05%) moving sharply lower after earnings.

Meanwhile, the health care (+1.6%) and consumer staples (+0.9%) sectors both show firm gains as investors rotate into more defensive holdings, while the energy sector (+0.4%) benefits from rising oil prices.

Total CPI increased 0.6% month-over-month (Briefing.com consensus: 0.6%), led by a 5.2% jump in the energy index, following a 0.4% increase in August. The September increase left total CPI up 3.7% year-over-year versus 3.4% in August.

Core CPI, which excludes food and energy, increased 0.3% month-over-month (Briefing.com consensus: 0.2%), pushed by a 0.4% increase in the shelter index, following a 0.3% increase in August. That left core CPI up 2.6% year-over-year versus 2.4% in August.

The key takeaway from the report is the acceleration in inflation away from the Fed's 2.0% inflation target. That is going to accelerate concerns about a possible tightening of Fed policy at the October FOMC meeting, not to mention deficit worries as cost-of-living adjustments for 2027 for SSI recipients are on track to see their largest increase in three years.

The CME FedWatch tool now shows a 49.3% probability of a rate 25-basis point rate hike at the October FOMC meeting, up from 21.6% before this morning's CPI release.

Equity futures now point to a lower opening following the release of the September CPI report.

Asian markets finished mostly lower on Wednesday, with persistent concerns surrounding AI investment spending and renewed strength in oil prices weighing on sentiment. Japan's Nikkei 225 slipped 0.1% for a fifth consecutive decline, with Kioxia Holdings (-3%), Tokyo Electron (-3%), Mizuho Financial (-3%), and Mitsubishi UFJ (-2%) among the laggards. China's Shanghai Composite fell 0.9% to a nearly three-month low, while the Shenzhen Component dropped 2.0% to a more than one-year low as September producer inflation accelerated to 5.0% yr/yr and consumer inflation edged up to 0.9%. Chinese equities weakened despite stronger-than-expected trade and credit data, with exports rising 36.3% yr/yr and imports increasing 31.0%, while Foxconn Industrial Internet (-7%), Zhongji Innolight (-6%), CATL (-3%), and China Life Insurance (-3%) declined. Hong Kong's Hang Seng slipped 0.1%, with Akeso (-10%), Kingboard Laminates (-5%), and Z.AI (-5%) among the notable decliners. Brent crude trading above $106 added to inflation concerns across the region ahead of the upcoming U.S. CPI report.

• In economic data:
  • China's September CPI rose 0.2% m/m (expected 0.3%; prior 0.4%) and 0.9% yr/yr (expected 1.0%; prior 0.8%).
  • China's September PPI rose 5.0% yr/yr (expected 4.4%; prior 3.8%).
  • China's September trade surplus totaled $133.53 bln (expected $116.80 bln; prior $119.09 bln).
  • China's September exports increased 36.3% yr/yr (expected 25.5%; prior 25.0%).
  • China's September imports increased 31.0% yr/yr (expected 24.5%; prior 28.2%).
  • China's September new loans totaled CNY1.080 trln (expected CNY1.025 trln; prior CNY60.0 bln).
  • China's September total social financing totaled CNY3.550 trln (expected CNY3.270 trln; prior CNY1.660 trln).
  • China's September M2 money supply increased 7.2% yr/yr (expected 7.4%; prior 7.5%).
  • China's September outstanding loan growth was 4.8% yr/yr (expected 4.8%; prior 4.9%).
  • India's September WPI inflation rose to 11.39% yr/yr (expected 10.18%; prior 9.92%).
  • India's September manufacturing inflation rose to 9.76% from 8.37%.
  • India's September food inflation rose to 8.14% from 5.67%.
  • India's September fuel inflation rose to 25.85% from 22.93%.

European markets trade mostly higher on Wednesday, with technology shares rebounding after upbeat results from ASML, although rising oil prices and the upcoming U.S. inflation report keep investors cautious. Germany's DAX gains 0.6%, with Infineon (+3%), Vonovia (+3%), MTU Aero Engines (+2%), Rheinmetall (+2%), and BASF (+2%) advancing, while Zalando (-2%) retreats. France's CAC 40 rises 0.6%, with STMicroelectronics (+2%) participating in the broader technology rebound and LVMH (+2%), Herms (+2%), and Kering (+2%) lifting the luxury sector. London's FTSE 100 gains 0.3%, supported by BAE Systems (+1%), Babcock (+1%), Rolls-Royce (+1%), and Glencore (+1%), while Rio Tinto (-1%) lags. Inflation remains a focus after Spain's September CPI accelerated to 4.9% yr/yr and Germany's wholesale prices jumped 8.7% yr/yr, while renewed Middle East tensions continue to support oil prices. The broader STOXX Europe 600 rises 0.5%, while Spain's IBEX 35 gains 0.5% and Italy's FTSE MIB slips 0.1%.

• In economic data:
  • Germany's September WPI increased 1.9% m/m (expected 0.6%; prior 0.9%) and 8.7% yr/yr (prior 6.8%).
  • Spain's September CPI increased 0.3% m/m (expected 0.3%; prior 0.7%) and 4.9% yr/yr (expected 4.9%; prior 4.3%).
  • Spain's September core CPI increased 3.1% yr/yr (expected 3.1%; prior 2.9%).
  • Spain's September HICP increased 0.6% m/m (expected 0.6%; prior 0.7%) and 5.0% yr/yr (expected 5.0%; prior 4.6%).

The S&P 500 futures currently trade nine points below fair value.

Just released, the Consumer Price Index increased 0.6% in September (Briefing.com consensus 0.5%), from a 0.4% increase in August.

Core CPI, which excludes food and energy, was up 0.3% in September (Briefing.com consensus 0.3%), from a 0.2% increase in August.

Equity futures point to another mixed opening as investors assess another round of earnings reports from banking names and weigh geopolitical developments ahead of key inflation data.

Crude oil is currently up $1.75 (+1.9%) to $95.90 per barrel following a Reuters report that Iran is planning to increase attacks on shipping through the Strait of Hormuz ahead of the midterm elections. Encouragingly, Treasury yields are not following oil prices higher.

Meanwhile, futures tied to the Nasdaq Composite are lower as semiconductor stocks continue to face pressure, with the PHLX Semiconductor Index in the midst of a five-session losing streak. ASML (ASML 1,708.11, -9.65, -0.6%) is indicated lower despite a beat-and-raise earnings report, with the company noting it sees 2027-28 supply falling short of customer demand.

Still, there are a lot of moving parts ahead of the open. September CPI and core CPI will be released at 8:30 ET, giving the market an important update on inflation pressures, while the October Beige Book is due this afternoon. The CME FedWatch tool currently assigns a 78.4% probability to the Fed keeping rates on hold at the October FOMC meeting. The latest MBA Mortgage Applications Index remained in contraction territory.

On the U.S. data front:

• 10/10 MBA Mortgage Applications Index -2.7%; prior -4.2%

Today's remaining economic calendar:

• 8:30 AM ET: September CPI; Briefing.com consensus 0.6%; prior 0.4%
• 8:30 AM ET: September Core CPI; Briefing.com consensus 0.2%; prior 0.3%
• 2:00 PM ET: October Beige Book

In corporate news:

• Bank of America (BAC 51.60, -2.36, -4.4%) missed EPS expectations by $0.02 and missed revenue expectations.
• BlackRock (BLK 1120.00, +53.88, +5.05%) exceeded fiscal third-quarter earnings and revenue estimates, reporting $205 billion in quarterly net inflows and ending the period with $15.5 trillion in assets under management.
• Morgan Stanley (MS 184.85, -1.79, -1.0%) beat EPS expectations by $0.10 and beat revenue expectations.

Reviewing overnight developments:

Asian markets finished mostly lower as concerns about AI investment spending and higher oil prices weighed on sentiment. According to Nikkei, Japan's benchmark logged a fifth consecutive decline.

In news:

• Brent crude traded above $106, adding to regional inflation concerns ahead of the U.S. CPI report.
• Chinese equities weakened despite stronger-than-expected trade and credit data.

In economic data:

• China's September CPI 0.2% m/m (expected 0.3%; prior 0.4%) and 0.9% yr/yr (expected 1.0%; prior 0.8%); PPI 5.0% yr/yr (expected 4.4%; prior 3.8%)
• China's September Trade Balance $133.53 bln (expected $116.80 bln; prior $119.09 bln); Exports 36.3% yr/yr (expected 25.5%; prior 25.0%) and Imports 31.0% yr/yr (expected 24.5%; prior 28.2%)
• China's September New Loans CNY1.080 trln (expected CNY1.025 trln; prior CNY60.0 bln); Total Social Financing CNY3.550 trln (expected CNY3.270 trln; prior CNY1.660 trln); M2 Money Supply 7.2% yr/yr (expected 7.4%; prior 7.5%) and Outstanding Loan Growth 4.8% yr/yr (expected 4.8%; prior 4.9%)
• India's September WPI Inflation 11.39% yr/yr (expected 10.18%; prior 9.92%); Manufacturing Inflation 9.76% (prior 8.37%), Food Inflation 8.14% (prior 5.67%), and Fuel Inflation 25.85% (prior 22.93%)

Equity Markets:

• Japan's Nikkei: -0.1%
• Hong Kong's Hang Seng: -0.1%
• China's Shanghai Composite: -0.9%
• India's Sensex: -0.3%
• South Korea's Kospi: -0.4%
• Australia's All Ordinaries: -0.6%

European markets trade mostly higher, with technology shares rebounding after upbeat results from ASML. Higher oil prices and the upcoming U.S. inflation report remain points of focus.

In news:

• Technology and luxury shares have provided support, while renewed Middle East tensions have kept oil prices elevated.

In economic data:

• Germany's September WPI 1.9% m/m (expected 0.6%; prior 0.9%) and 8.7% yr/yr (prior 6.8%)
• Spain's September CPI 0.3% m/m (expected 0.3%; prior 0.7%) and 4.9% yr/yr (expected 4.9%; prior 4.3%); Core CPI 3.1% yr/yr (expected 3.1%; prior 2.9%); HICP 0.6% m/m (expected 0.6%; prior 0.7%) and 5.0% yr/yr (expected 5.0%; prior 4.6%)

Equity Markets:

• STOXX Europe 600 : +0.5%
• Germany's DAX : +0.6%
• U.K.'s FTSE 100 : +0.3%
• France's CAC 40 : +0.6%
• Italy's FTSE MIB : 0.0%
• Spain's IBEX 35 : +0.5%

[BRIEFING.COM] The major averages finished Tuesday's session with modest changes, recovering from more pronounced intraday weakness as a late improvement in semiconductor stocks helped stabilize the broader market. The S&P 500 (flat) ended near its unchanged level, while the Nasdaq Composite (-0.2%) and DJIA (-0.4%) registered small losses. The relatively quiet finish masked another session of uneven performance across individual stocks and sectors.

Semiconductor stocks were a central influence on today's trading, initially extending yesterday's decline amid concerns about increased competition from Chinese memory chipmakers. The PHLX Semiconductor Index (-0.2%) fell as much as 3.1% shortly after the open, reflecting pressure that also contributed to a 5.5% overnight decline in South Korea's Kospi. Memory names such as Micron (MU 953.19, -35.85, -3.62%) remained under pressure, but selling across the broader semiconductor group eased considerably as the session progressed. The recovery helped the information technology sector (+0.1%) finish with a slim gain after spending much of the morning in negative territory.

The improvement in semiconductor stocks also helped the Nasdaq Composite recover much of its earlier decline, although the index ultimately finished slightly lower. Five S&P 500 sectors closed higher, led by the energy sector (+1.8%), which continued its recent stretch of outperformance despite relatively little movement in crude oil prices. Refiners were particularly strong, with Marathon Petroleum (MPC 476.98, +18.17, +3.96%) and Valero Energy (VLO 456.46, +20.46, +4.69%) reaching fresh record highs. WTI crude settled $0.29 higher (+0.3%) at $94.06 per barrel.

The communication services sector (+0.9%) was another standout, benefiting from continued strength in Meta Platforms (META 762.50, +19.54, +2.63%).

On the other side of the sector standings, the health care sector (-1.3%) finished with the largest decline, weighed down by Johnson & Johnson (JNJ 248.61, -15.12, -5.73%) following its Q3 earnings report. Disappointing MedTech growth and a modest increase to full-year guidance overshadowed stronger pharmaceutical sales, leaving JNJ among the weakest DJIA components.

The industrials sector (-0.3%) also staged a notable recovery from its earlier losses, moving higher alongside semiconductor stocks after falling more than 1.0% around midday. However, Caterpillar (CAT 772.78, -26.59, -3.33%) remained a significant drag on the price-weighted DJIA as its recent retreat continued.

Meanwhile, the financials sector (-0.4%) finished modestly lower following mixed reactions to earnings from several major banks. Goldman Sachs (GS 891.91, -2.04, -0.23%) and JPMorgan Chase (JPM 331.43, -2.87, -0.86%) ceded earlier gains, while Citigroup (C 124.53, -7.39, -5.60%) and b80.74, -2.58, -3.10%) faced more pronounced pressure. Bank earnings remain in focus tomorrow, with Bank of America (BAC 53.96, -0.62, -1.14%) and Morgan Stanley (MS 186.66, -3.36, -1.77%) scheduled to report before the open.

Elsewhere, the Russell 2000 (-0.4%) continued to trail the S&P 500, while the S&P Mid Cap 400 (+0.1%) managed a slight gain.

On the geopolitical front, Axios reported that Israeli Prime Minister Benjamin Netanyahu and President Trump discussed the possibility of renewed strikes against Iran before the midterm elections. Trump reportedly indicated that he would not authorize additional strikes before the elections, although the Pentagon remains prepared should that position change.

Ultimately, the afternoon recovery in semiconductors and other technology-related stocks prevented the earlier selling from producing a more substantial decline in the major averages. Nevertheless, the uneven sector performance and continued weakness in select heavyweight stocks left the broader market with little directional momentum by the close.

U.S. Treasuries had a mostly higher start to the holiday-shortened week, but the front end finished flat after reversing from a higher start while longer tenors held onto a portion of their starting gains. The 2-year note yield finished unchanged at 4.79%, and the 10-year note yield settled down two basis points to 5.22%. 

• Nasdaq Composite: +17.1% YTD
• S&P 500: +14.0% YTD
• Russell 2000: +12.2% YTD
• S&P Mid Cap 400: +10.7% YTD
• DJIA: +7.5% YTD

Reviewing today's data: 

• Sep NFIB Small Business Optimism 97.9 (Briefing.com consensus 98.0; Prior 98.7)
• Existing home sales increased 1.5% month-over-month in September to a seasonally adjusted annual rate of 3.99 million (Briefing.com consensus 3.96 million) from a downwardly revised 3.93 million (from 3.98 million) in August. Sales were down 2.2% on a year-over-year basis.
  
  • The key takeaway from the report is that year-over-year sales were down in all four regions, reflecting persistent headwinds from high mortgage rates. As a result, August and September have been the slowest two months for home sales so far in 2026.