Investing.com — U.S. stocks fell Thursday as stronger-than-expected inflation data muddied the outlook for Federal Reserve rate cuts.
At 3:02 p.m. ET (2002 GMT), the was 151 points, or 0.4%, lower, the fell 0.4%, and the dropped 0.2%.
CPI data comes in hot, cooling bets on big rate cuts
Headline inflation in the US slowed on an annualized basis in September, but was still faster than expectations, providing the Federal Reserve with less impetus to cut interest rates at a fast pace.
The (CPI). was 0.2% in September, unchanged rom August but above the 0.1% expected. That took the annual pace through August to 2.4%, down from 2.5% in August, but above expectations of 2.3%.
Core CPI, which strips out food and energy and is closely watched by the Fed, rose at 0.3%, taking the annual pace through September to 3.3%, topping economists estimates of 2.3%.
“With a further emphasis back towards inflation, investors appear to be “recalibrating” their outlook for rate cuts, reducing expectations for a second-round outsized 50bp cut in November and sending the 10-year back over 4% for the first time since July,” Stifel said in a Thursday note.
Banks to kick off Q3 earnings season; Delta falls on guidance
Focus this week is also on the third-quarter earnings season, with a string of major banks set to report on Friday.
JPMorgan Chase (NYSE:), Wells Fargo (NYSE:) and Bank of New York Mellon (NYSE:) are set to report third-quarter earnings on Friday, while Goldman Sachs (NYSE:), Bank of America (NYSE:) and Citigroup (NYSE:) will report earnings next week.
Earnings from Johnson & Johnson (NYSE:), Unitedhealth Group (NYSE:) and Walgreens Boots (NASDAQ:) are also due early next week.
Ahead of this, Delta Air Lines (NYSE:) stock fell 0.3% after the carrier unveiled current-quarter earnings guidance that missed analysts expectations, as it grapples with the fallout from a summer computer network outage and pricing pressures from overcapacity.
The company said it now expects to report fourth-quarter adjusted earnings per share of between $1.60 to $1.85, missing Wall Street estimates of $1.78 at the midpoint, according to Bloomberg News.
Tesla robotaxi event eyed; GXO reportedly mulls sale; AMD falls as AI event gets underway
GXO Logistics Inc (NYSE:) gained more than 14% after Bloomberg reported, citing unnamed sources, that the company is mulling a sale. The report suggested , however, that a decision hasn’t yet been made.
Tesla Inc (NASDAQ:) was little changed as investors awaited the EV maker to unveil its robotaxi at an event Thursday.
Advanced Micro Devices Inc (NASDAQ:), meanwhile, fell more than 4% as the chipmaker kicked off its artificial intelligence event to showcase its latest plans including new chips to compete with rival Nvidia (NASDAQ:).
AMD said Thursday it plans to ramp production of its new artificial intelligence M1325X chip starting in the fourth quarter and the chipmaker also unveiled a new server chip as well as announced a new AI chip slated to be released in the second half of next year.
(Peter Nurse, Ambar Warrick contributed to this article.)
