Markets in 5Wednesday, October 14
Chips drag stocks lower ahead of September inflation data
US stocks finished slightly lower on Tuesday as chip shares fell and early bank earnings did not lift the market, with Treasury yields down and September CPI due this morning.
Stocks
Stocks edge lower as bank earnings fail to lift markets
The Dow Jones Industrial Average fell 180.45 points, or 0.35%, to 51,670.10 on Tuesday. The S&P 500 slipped 0.02% to 7,805.45 and the Nasdaq Composite lost 0.15% to 27,204.38. Early bank earnings did not calm worries about inflation and possible Federal Reserve rate hikes, the Wall Street Journal reported, and the S&P 500 remains just below its all-time high set last week.
Sectors
Chip stocks head for worst losing streak in 16 months
The Philadelphia Semiconductor Index was on track for a sixth straight daily decline on Tuesday, Quartz reported, as investors grow less patient with heavy AI spending. Arm Holdings fell 6.48%, Intel 5.34%, Micron Technology 4.79% and Broadcom 4.35%, all among the Nasdaq's biggest decliners. Applied Materials dropped more than 6.5%, and memory-chip stocks also came under pressure over worries about Chinese competition.
Rates
Treasury yields slip as 10-year eases to 5.21%
The 10-year Treasury par yield closed at 5.21% on October 13, down 3 basis points on the day, according to official Treasury data. The 2-year yield closed at 4.79%, leaving the gap between two-year and ten-year yields at 42 basis points. The Wall Street Journal said yields retreated during the session as Brent crude prices dropped and artificial intelligence stocks pulled back.
The Fed
Williams sees one more hike this year, none in 2027
New York Fed President John Williams said he still sees one more interest-rate hike as appropriate in 2026 but not in 2027, CNBC reported. CNBC noted that his view was at odds with traders' expectations, and bond yields fell after the remarks. The Fed's current target range is 3.75% to 4.00%, and investors priced in a 22% chance of an October hike ahead of the CPI release, the CME FedWatch Tool showed.
Economy
September CPI due at 8:30 a.m. Eastern today
Economists expect the consumer price index for September to rise 0.6% on the month and 3.6% from a year earlier, according to CNBC. Core CPI is forecast to gain 0.2% on the month and 2.5% over the year. Average US pump prices reached $4.34 a gallon, compared with $3.08 a year earlier.