Stocks Turn Lower, Yields Rise After Hot Inflation Reading -- WSJ

By Chelsey Dulaney

A hotter-than-expected September inflation report has put a dampener on the mood in markets Wednesday.

Stocks are lower in afternoon trading, with the Nasdaq bearing the brunt of the declines, down 1.6%, and the Dow industrials trading about 0.3% lower. Treasury yields rose, though they've stayed below their recent highs.

The U.S. consumer price index rose 3.7% in September from an annual rate of 3.4% in August. Economists polled by the Wall Street Journal had expected a 3.6% increase. Core inflation, which excludes volatile food and energy costs, also topped economists' forecasts.

The data raises pressure on the Federal Reserve to consider further interest-rate increases to tame inflation, which is sitting well above its 2% target. Most investors had been expecting the Fed would wait until December to lift rates again, but now see the odds of an October rate hike as more or less a coin toss.

Investors are also dissecting a fresh round of earnings from Wall Street. Bank of America shares are tumbling after its profit disappointed even excluding a $1.2 billion fine, while BlackRock's are climbing after it reported record assets for the third quarter.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

October 14, 2026 12:28 ET (16:28 GMT)