Stock Market Midday, Oct. 14: Hot Inflation Weighs on Markets, CoreWeave Plummets 15%
As of 11:38 AM ET, the S&P 500 (SNPINDEX:^GSPC) is down 0.91% to 7,734 as a hot inflation print weighs on sentiment. The Nasdaq Composite (NASDAQINDEX:^IXIC) is down 1.31% to 26,840 on tech weakness, and the Dow Jones Industrial Average (DJINDICES:^DJI) has slipped 0.09% to 51,620 as investors brace for further rate hikes.
Gold prices are down 1.79% to $4,083.51, and the 10-Year Treasury yield is up 2 basis points to 5.24%. The healthcare sector leads gainers, and basic materials and technology stocks have seen the biggest declines.
Today's biggest moves
Bank of America shares dropped more than 6% this morning after a $1.2 billion regulatory fine hit profits. CoreWeave plummeted 15% after a social media post showed its bond yield had hit 15%, spooking investors concerned about rising borrowing costs. The jitters spread to its competitors -- Nebius Group tumbled over 9%.
Conversely, GlobalFoundries jumped after it was selected as the technology provider and operator for a U.S.-Japan semiconductor initiative, providing up to $21 billion in funding. Eli Lilly is climbing as the pharmaceutical giant shows strength against broader volatility.
What this means for investors
Major indexes fell this morning as stubborn inflation revived fears that the Federal Reserve will hike rates again, pressuring growth stocks. The Consumer Price Index rose 3.7% in September, higher than economists had expected. Gasoline is 34% more expensive than it was a year ago, which pushes up living costs.
The semiconductor rout continues, and ASML's solid earnings, highlighting strong demand, weren't enough to turn the tide. Chinese competition concerns, high valuations, and questions about how the AI market will develop have fueled the sell-off -- the PHLX Semiconductor index has fallen over 10% in the past five days. However, this is a volatile, news-driven sector, and investors may get the reassurance they seek from upcoming earnings from key players.
Citigroup is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML, Arm Holdings, Eli Lilly, and Globalfoundries. The Motley Fool has a disclosure policy.