PPI and Earnings Keep Markets Busy 15/10/2026

Market Wrap

U.S. stocks declined Wednesday as hotter-than-expected inflation data and renewed concerns over artificial-intelligence spending weighed on technology shares, sending the Nasdaq sharply lower.

The S&P 500 fell 1.11% while the Nasdaq Composite dropped 1.88%. The Dow Jones Industrial Average slipped 49 points, or 0.09%, supported by gains in healthcare stocks including UnitedHealth Group (UNH) and Amgen (AMGN).

September's Consumer Price Index rose 0.6% from the previous month and 3.7% year over year, intensifying concerns that persistent inflation could keep interest rates elevated for longer.

Energy costs added to inflation pressures, with U.S. gasoline prices averaging $4.33 per gallon, compared with $3.08 a year earlier. West Texas Intermediate crude climbed 1.01% to settle at $95.09 a barrel, while analysts questioned whether temporary easing of restrictions on Russian diesel exports would meaningfully reduce fuel costs.

Technology stocks faced heavy selling as investors scrutinized the growing reliance on debt to finance AI infrastructure. CoreWeave (CRWV) plunged more than 15%, while Oracle (ORCL) tumbled nearly 9%, reflecting concerns over financing costs and the sustainability of aggressive capital spending. Semiconductor shares also extended their recent declines.

Banking stocks came under pressure, with Bank of America (BAC) falling nearly 5% after third-quarter revenue missed Wall Street expectations.

Attention now turns to Thursday's Producer Price Index, retail sales and weekly jobless claims, all scheduled for release at 8:30 a.m. ET. The reports could further influence Treasury yields and expectations for Federal Reserve policy.

Earnings season also continues, with U.S. Bancorp (USB), PNC Financial Services (PNC) and Charles Schwab (SCHW) set to report.

With inflation remaining stubbornly elevated and AI-related valuations facing increased scrutiny, investors are bracing for continued volatility across equities and bonds.

Fed Rate-Hike Expectations Rise After Hot Inflation Report

The Federal Reserve faces a closely contested interest-rate decision later this month after stronger-than-expected September inflation data increased expectations for another rate hike.

Market-implied odds of a quarter-point increase at the October 27–28 meeting jumped to nearly 40% from 22% the previous day, reflecting growing concerns that inflation remains too persistent for policymakers to pause.

September's inflation report showed broad-based price pressures, with core goods prices rising 0.25%, their largest monthly increase since January 2025. Economists at Jefferies and Nationwide argue that elevated inflation, resilient economic activity and rising energy costs strengthen the case for further tightening.

However, other analysts expect the Fed to hold rates steady in October following September's 25-basis-point increase. ING and Natixis point to recent comments from Fed officials suggesting there is no urgency to raise rates again, alongside concerns that additional tightening could weaken economic growth.

Political timing adds another consideration, with the Fed's decision scheduled just six days before the U.S. midterm elections. Some economists believe policymakers may prefer to wait until December for additional economic data.

Fed Chair Kevin Warsh has emphasized keeping policy meetings open to debate rather than signaling decisions in advance, leaving investors facing greater uncertainty over the next move.

Attention now turns to Warsh's upcoming remarks at the IMF and World Bank meetings before the Fed enters its communications blackout period Saturday.

For markets, the October decision remains finely balanced, with inflation trends, Treasury yields and Fed guidance likely to drive volatility as investors reassess the path of interest rates.

Stocks on the Move

• Dell Technologies (DELL) and Hewlett Packard Enterprise (HPE): Shares plunged more than 8% and nearly 5%, respectively, after Barclays downgraded both stocks to equal weight from overweight. Analysts questioned whether their substantial 2026 rallies, exceeding 350% for Dell and 185% for HPE, could be sustained.
• Morgan Stanley (MS): Shares declined 3% after the investment bank reported third-quarter investment banking revenue below Wall Street expectations.
• IonQ (IONQ): Shares dropped 8% after the quantum computing company announced a $2 billion equity offering. The move followed its agreement to acquire cybersecurity firm Elisity in an all-stock transaction valued at up to $1.3 billion.
• Bending Spoons (BSP): Shares surged 40% after Berkshire Hathaway announced an additional $330 million investment, bringing its ownership stake to 4%. The investment follows an earlier $600 million commitment to the Italian technology company.
• CoreWeave (CRWV): Shares plunged 15% as concerns over AI infrastructure financing intensified following a sharp selloff in the company's bonds. Unsecured debt maturing in 2032 traded below 80 cents on the dollar, while related AI stocks also declined, with Nebius (NBIS) losing 9% and Lumentum (LITE) falling 7%.
• Bank of America (BAC): Shares tumbled 7% after the lender reported a sharp decline in third-quarter profit, weighed down by a $1.2 billion U.S. Treasury penalty related to money-laundering violations.

Watchlist: RKLB, MU, DELL, TSM, SCHW, USB, GOOGL, META, SPCX, MSTR, CVX, UNH

Key Economic Events Today

Economic Data (EST)

• 08:30 AM — USD Core PPI, PPI
• 08:30 AM — USD Retail Sales
• 08:30 AM — USD Philly Fed Manufacturing Index
• 08:30 AM — USD Unemployment Claims
• 08:30 AM — USD Empire State Manufacturing Index
• 10:00 AM — USD Business Inventories
• 12:00 PM — USD Crude Oil Inventories
• 04:30 PM — USD FOMC Member Hammack Speaks

Earnings

Before Market Open: Taiwan Semiconductor (TSM), Charles Schwab (SCHW), Prologis (PLD), U.S. Bancorp (USB), PNC Financial (PNC), Ericsson (ERIC)

After Market Close: Interactive Brokers (IBKR), J.B. Hunt Transport, Alcoa Corp. (AA)