U.S. stocks closed lower on Wednesday after a hotter-than-expected September inflation reading revived bets on further Federal Reserve rate hikes.
The Dow Jones Industrial Average lost 48.62 points, or 0.09 percent, to 51,621.48. The S and P 500 fell 86.51 points, or 1.11 percent, to 7,718.94, its first decline of at least 1 percent in more than 50 trading days. The Nasdaq Composite decreased 511.51 points, or 1.88 percent, to 26,692.87.
Three of the 11 primary S and P 500 sectors finished higher as investors rotated into defensive names. Health Care rose 2.44 percent and Consumer Staples added 2.38 percent, while Energy edged up 0.8 percent. Technology led declines with a 2.62 percent drop, followed by Communication Services down 1.73 percent.
The U.S. consumer price index (CPI) grew 0.6 percent month on month and 3.7 percent year on year in September, up from 0.4 percent and 3.4 percent in August, respectively, according to data released by the U.S. Bureau of Labor Statistics on Wednesday.
U.S. Treasury yields were whipsawed by the inflation data. The benchmark 10-year yield spiked above 5.32 percent after the CPI report but later eased to 5.186 percent, ending lower on the day as investors fled to safer assets.
Oil prices gained ground amid Middle East supply concerns. West Texas Intermediate settled at 95 U.S. dollars a barrel, up 1.01 percent, while Brent crude settled at 106.06 dollars, up 0.35 percent.
On the corporate front, Bank of America tumbled 4.76 percent after its profit disappointed, even excluding a 1.2-billion-dollar regulatory fine. Morgan Stanley also declined despite beating estimates, while BlackRock gained after reporting record assets.
AI-linked names were hit hard as fears of higher rates mounted, with Oracle, CoreWeave, Nebius, Marvell and Advanced Micro Devices all tumbling. The Philadelphia Semiconductor Index fell 4.3 percent for a sixth straight session.
According to CME FedWatch, traders are pricing in a 37 percent chance of a Fed hike at the Oct. 28 meeting, up from 22 percent on Tuesday, with about a 91 percent chance of at least one hike by December.
U.S. stocks close drop as hot CPI revives Fed rate-hike bets
Azerbaijani President Ilham Aliyev met with Chinese Foreign Minister Wang Yi in Baku on Wednesday.
Aliyev asked Wang, also a member of the Political Bureau of the Communist Party of China Central Committee, to convey his warm greetings and best wishes to Chinese President Xi Jinping and thanked Xi for sending Wang as his special representative to attend the Seventh Summit of the Conference on Interaction and Confidence Building Measures in Asia (CICA) in Azerbaijan.
Aliyev said Azerbaijan and China enjoy a high level of political mutual trust and mutually beneficial economic cooperation, and their comprehensive strategic partnership is flourishing.
The common understandings he reached with President Xi during his visit to China last year have been effectively implemented, bringing bilateral relations to a new stage, Aliyev said.
Aliyev expressed appreciation for China's longstanding strong support for Azerbaijan in pursuing its economic and social development and safeguarding national interests.
He said Azerbaijan regards China as a leading force in the rise of the Global South, and Chinese modernization has set an example for developing countries, including Azerbaijan.
Noting that Azerbaijan was among the first countries to support and participate in the Belt and Road Initiative, Aliyev said a series of cooperation projects between the two countries has yielded fruitful results.
Azerbaijan is willing to strengthen strategic alignment with China and further expand cooperation in areas such as energy and connectivity, Aliyev said, adding that Azerbaijan welcomes more Chinese companies to invest and do business in the country.
He also called for making full use of the mutual visa exemption agreement to further promote people-to-people exchanges between the two countries.
Aliyev said Azerbaijan firmly adheres to the one-China principle, fully supports the global initiatives put forward by President Xi, and appreciates China's consistent commitment to upholding international fairness and justice and multilateralism.
Azerbaijan is willing to strengthen coordination and cooperation with China in international and regional affairs, he added.
Wang conveyed President Xi's cordial greetings to President Aliyev, saying that under the strategic guidance of the two heads of state, China and Azerbaijan have maintained mutual understanding, trust and support, with bilateral relations enjoying strong momentum of growth and showing broad prospects for development.
China congratulates Azerbaijan on the remarkable progress it has made in national development under President Aliyev's leadership, supports Azerbaijan in pursuing a development path suited to its national conditions, and stands ready to strengthen cooperation with Azerbaijan and other parties on the Middle Corridor and remains a reliable long-term strategic partner in the process of Azerbaijan's development, Wang said.
China appreciates Azerbaijan's longstanding strong support on issues concerning China's core interests and also supports Azerbaijan in safeguarding its independence, sovereignty and territorial integrity, Wang said.
China's development represents a rise in the strength of the Global South and a boost to the collective strength of developing countries, Wang said, adding that China stands ready to continue close coordination and cooperation with Azerbaijan to safeguard the common interests of Global South countries.
China supports Azerbaijan in playing an important role on multilateral platforms such as CICA and in international affairs, and in making greater contributions to regional and global peace and stability, Wang said.
During the visit, Wang also held talks with Azerbaijani Foreign Minister Jeyhun Bayramov.
Azerbaijani president meets Chinese FM
