End-of-day recap
Hotter-than-expected inflation raised Fed hike odds and drove a tech selloff amid concerns over financing the AI buildout.
A hotter-than-expected inflation print drove today's session. Rate-hike odds rose, tech sold off, and high-multiple hardware names took some of the hardest hits.
The S&P 500 fell 1.11% to 7,718.94 and the Nasdaq dropped 1.88% to 26,692.87. The 10-year Treasury yield closed at 5.19% and the 2-year at 4.82%. September CPI came in at 3.7% versus 3.6% expected, with core at 2.6% versus 2.5%, raising odds of an October 28 Fed hike. Chicago Fed President Austan Goolsbee called the print discouraging but said more data are needed.
Healthcare led at +2.53% and technology lagged at -2.98%. Reuters tied the rotation to the inflation data and to worries about how the AI buildout gets financed.
Jefferies raised its Microsoft price target to $650 from $575.
UBS assumed Regeneron with a Buy rating, up from Neutral, and a $978 target.
Scotiabank initiated Diamondback Energy at Outperform with a $250 target, as part of a broad initiation wave across E&P.
Everpure fell as much as 10.39% intraday and closed down 9.88% at $141.46, barely off the low, then slid another 3.41% after hours to $136.63. Reports cited rate pressure on tech, profit-taking after a sharp run, and insider-sale disclosures.
BPRE director Ramin Kamfar has been buying shares. The fund closed down 1.80% at $12.55 and traded at $12.84 after hours.
CoreWeave CEO Mike Intrator called the market's reaction to the company's data center borrowing irrational in a staff memo.
Wolfspeed investors are weighing its October 7 conditional $1.5 billion Department of War loan commitment against a prospectus covering up to 58.15 million resale shares and warrants.
Skydance shares began trading without entitlement to roughly 471 million warrants. Class B holders received the warrants after the completed Warner Bros. Discovery acquisition.
Liquidia settled its Yutrepia patent litigation with United Therapeutics. BTIG upgraded the stock to Buy with a $70 target.
Barrick fell 4.02% to $38.89 and UBS slipped 1.46% to $47.15. UBS reports Oct. 28; Barrick reports Nov. 9.
ASML fell 3.94% to $1,650 on its report day and was at $1,637.99 after hours. EPS of $14.65 beat the $12.17 estimate, while revenue of $13.05 billion narrowly missed $13.14 billion. Full-year 2026 guidance rose to 44 billion to 45 billion euros.
With an October 28 hike now more likely, rate sensitivity is setting the tape.
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