Hotter-than-expected inflation data pressures markets
U.S. equities came under renewed pressure this week as hotter-than-expected inflation data forced investors to reassess both the interest rate outlook and the sustainability of the AI investment boom. The September CPI report showed headline inflation rising 0.6% for the month and 3.7% year-over-year, while core CPI increased 0.3% for the month and 2.6% for the year—this reading comes in above both the Fed’s stated 2.0% target and the high end of economist expectations.
October 20, 2026
