[New York Stock Market] U.S. September CPI Tops Expectations, Treasury Yields Rise... Stocks Mixed

Odds of Fed tightening rise... U.S. Treasury yields surge
International oil prices continue to climb
Semiconductor stocks broadly lower

After the U.S. Consumer Price Index (CPI) for September came in above expectations, the three major New York stock indexes were mixed on October 14 (local time). Inflation concerns resurfaced, pushing up U.S. Treasury yields and weighing on investor sentiment toward risk assets.

As of 9:50 a.m. in New York, the Dow was trading up 172.61 points, or 0.33%, from the previous session at 51,842.71. The S&P 500, which is weighted toward large-cap stocks, was down 17.04 points, or 0.22%, at 7,788.41, while the Nasdaq, which is weighted toward technology stocks, was down 83.02 points, or 0.31%, at 27,121.35.

The market focused on the September CPI report released before the opening bell. According to the U.S. Department of Labor, the CPI rose 0.6% from the previous month and 3.7% from the same month a year earlier. The month-over-month increase matched market expectations, but the year-over-year increase exceeded the 3.6% forecast compiled by Dow Jones.

Core CPI, which excludes volatile food and energy prices, also came in above expectations. It rose 0.3% from the previous month and 2.6% from a year earlier, exceeding market forecasts of 0.2% and 2.5%, respectively.

As the increase in the CPI was higher than expected, U.S. Treasury yields rose across the board. The 10-year Treasury yield climbed more than 7 basis points (1 basis point = 0.01 percentage point) to 5.293%, while the 30-year yield rose more than 4 basis points to 5.609%. Both yields hit their highest levels in 24 years last week.

Markets are concerned that persistent inflationary pressure could increase the likelihood of the Federal Reserve (Fed) tightening monetary policy. Higher Treasury yields make stocks less attractive, particularly weighing on technology stocks, whose prices reflect expectations for future earnings to a large degree.

Jeff Schulze, head of investment strategy at the Franklin Templeton Institute, said, "Today's data will have a somewhat negative impact on risk assets. Expectations of near-term rate hikes will put upward pressure on long-term yields and drive the dollar higher, but they will weigh on equity valuations."

Rising international oil prices are also fueling inflation concerns. According to the American Automobile Association (AAA), the average price of gasoline in the United States is $4.34 per gallon, up about 41% from $3.08 a year ago.

U.S. President Donald Trump announced that he would temporarily ease sanctions on Russian diesel exports, but experts do not expect this to significantly lower diesel prices in the United States.

On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for November delivery was up 1.39% from the previous session at $95.45 per barrel. On the Intercontinental Exchange (ICE), Brent crude for December delivery was trading up 0.33% at $106.04 per barrel.

Among individual stocks, semiconductor shares were broadly lower. Micron Technology was down 1.10%, AMD 2.95%, Intel 2.42%, and Sandisk 2.60%.

This content was produced with the assistance of AI translation services.