Stocks suffer their worst day since July as hot inflation hits AI shares
After the close, Wednesday October 14: what moved, why, and what to watch next.
Dusk Ledger · Wednesday, October 14, 2026 · 5:00 PM ET
The close
| Index | Close | Day |
|---|---|---|
| S&P 500 | 7,721.49 | -83.96 points, -1.08% |
| Dow Jones Industrial Average | 51,624.87 | -45.23 points, -0.09% |
| Nasdaq Composite | 26,701.48 | -502.90 points, -1.85% |
Figures are Reuters' preliminary closing numbers. The AP, which called it the worst day for US stocks since July, rounded the S&P 500 to -1.1% and the Nasdaq to -1.9%, and had the Dow down 48 points. The S&P 500 has now lost ground on five of the six days since its record high (AP).
What moved, and why
Inflation reset the rate outlook. September consumer prices rose 3.7% from a year earlier and core prices 2.6%, both above forecasts (Reuters): see our CPI story. Reuters said traders raised the chance of a Fed hike this month to 41% (LSEG data) or 37% (CME FedWatch), from about 20% to 22% before the report. The dollar hit its highest level since April 2025 and the two-year Treasury yield rose 7.2 basis points to 4.87% (Reuters). More in our Fed odds story.
AI stocks took the hit. Reuters said fears of more rate hikes pummeled Oracle, CoreWeave and Nebius, and that Dell and Hewlett Packard Enterprise sank after Barclays cut them to equal-weight. CNBC reported CoreWeave down 16% as its bond yields neared 15%: our story. The Philadelphia semiconductor index fell for a sixth straight session, its longest losing streak since May 2025 (Reuters).
Banks and earnings. Bank of America fell after its profit dropped on a $1.2 billion regulatory charge, and Morgan Stanley fell despite higher quarterly profit, while the S&P 500 banks index sank to its lowest in over four months (Reuters). See Morgan Stanley and BlackRock and State Street. Healthcare, consumer staples and energy were higher in Reuters' afternoon report.
The Fed and the economy. The Beige Book showed little growth outside manufacturing and intensifying price pressure: our story. Our afternoon market story has the 2:15 PM numbers.
What to watch next
The Fed meets October 27-28 (AP). Retail sales and producer prices are due Thursday (CNBC). Earlier today: Toast & Tickers.