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Hot U.S. Inflation Sends Asian Tech Stocks Tumbling
U.S. inflation reached 3.7% year over year in September, above the 3.6% forecast, and helped trigger a technology led sell off: a later Reuters snapshot put MSCI Asia Pacific ex Japan down 3.3%, the Kospi down 8% and...
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- U.S. inflation reached 3.7% year over year in September, above the 3.6% forecast, and helped trigger a technology led sell off: a later Reuters snapshot put MSCI Asia Pacific ex Japan down 3.3%, the Kospi down 8% and...
- Wall Street also fell, and estimates of the chance of another Fed hike rose—but varied across reports and trading snapshots.
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openai.comCreate a landscape editorial hero image for this Studio Global article: How did September’s hotter-than-expected US inflation report—including monthly CPI growth of 0.6%, annual inflation of 3.7% versus 3.6% expe. Article summary: The hotter inflation report triggered a rate-hike-driven sell-off: Asian technology shares bore the brunt on Thursday, October 15, while US AI stocks had fallen sharply the previous day as investors worried about higher . Topic tags: general, general web, news. Style: premium digital editorial illustration, source-backed research mood, clean composition, high detail, modern web publication hero. Use reference image context only for broad subject, composition, and topical grounding; do not copy the exact image. Avoid: logos, brand marks, copyrighted characters, real person likenesses, fake screenshots, UI text, readable text, watermarks, charts with fake numbers
September’s hotter-than-expected U.S. inflation report renewed concerns that the Federal Reserve could raise rates again. Technology shares took the brunt: U.S. AI stocks fell on Wednesday, October 14, and Asian markets extended the sell-off on Thursday. 18
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What the inflation report showed
The Consumer Price Index rose 0.6% from August and 3.7% from a year earlier, up from 3.4% in August and above the 3.6% annual forecast. Core CPI, which excludes food and energy, rose 0.3% month over month and 2.6% year over year; the annual figure exceeded the 2.5% forecast. 5
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That stronger-than-expected reading added to concerns about the Fed’s next move. It followed a September quarter-point rate increase that brought the target range to 3.75%–4.00%, according to reporting on the decision. 9
Asian stocks: technology shares led the decline
In a later Reuters market snapshot on Thursday, MSCI’s broadest Asia-Pacific index outside Japan was down 3.3%, South Korea’s Kospi had fallen 8%, and Japan’s Nikkei 225 was down 4.8%. 18 Earlier reporting that day showed smaller declines, underscoring that the figures reflect different points in a volatile trading session.
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The technology supply chain bore the brunt. Reuters described the sell-off as a repricing of the cost of capital, as investors weighed higher borrowing costs alongside worries about debt tied to data-center investment. 18 That combination matters for AI infrastructure companies, which need substantial financing to build out capacity.
Wall Street and AI stocks also fell
U.S. stocks declined after the inflation release on Wednesday. The S&P 500 closed down 1.11%, the Nasdaq Composite fell 1.88%, and the Dow Jones Industrial Average slipped 0.09%. The Russell 2000 lost 1.93%. 51
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AI-linked names were among the sharper decliners. One Reuters report said Oracle fell 8.8%, CoreWeave 15% and Nebius 10% as investors focused on the prospect of higher borrowing costs and the expense of financing AI infrastructure. 49
Rate-hike estimates rose, but varied by snapshot
Before the CPI release, Reuters reported a 22% market-implied chance of an October rate hike. After the report, separate coverage put that probability at 37% and 60%, respectively. 29
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49 The estimates are snapshots from changing market conditions, not a settled forecast or a Fed decision.
The immediate market reaction was clear: higher-than-expected inflation strengthened rate concerns, while technology shares were vulnerable both to that shift and to financing worries. The available reports do not establish a verified move in silver or Bitcoin, so no specific change in either is included here.
The dollar and gold
The dollar rose after the inflation surprise, although a later pullback tempered its initial gain. 54 Gold also fell: one market-data report put the October 14 decline at 1.19%, to $4,111.81 an ounce.
34 Higher expected interest rates can weigh on gold by making interest-bearing assets relatively more attractive; a stronger dollar can add pressure to dollar-priced bullion. The supplied reporting does not confirm the claimed silver low or a specific Bitcoin move.
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U.S. inflation reached 3.7% year over year in September, above the 3.6% forecast, and helped trigger a technology led sell off: a later Reuters snapshot put MSCI Asia Pacific ex Japan down 3.3%, the Kospi down 8% and...
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U.S. inflation reached 3.7% year over year in September, above the 3.6% forecast, and helped trigger a technology led sell off: a later Reuters snapshot put MSCI Asia Pacific ex Japan down 3.3%, the Kospi down 8% and... Wall Street also fell, and estimates of the chance of another Fed hike rose—but varied across reports and trading snapshots.
Sources
rmb.reuters.comTech stocks tumble as data centre debt worries hit AI trades
wsvn.comInflation worsened last month to 3.7% in sign that prices ...
schwab.comMixed Bank Tidings, Chip Pressure, CPI in Focus - Charles Schwab