Nasdaq Ends Sharply Lower on Hot Inflation Data and Rate-Hike Fears

The Nasdaq closed sharply lower on Wednesday after higher-than-expected US consumer price inflation data for September stirred expectations of further interest rate hikes by the Federal Reserve.

Interest-rate traders priced in a 37% chance of a Fed rate hike this month, up from 22% previously, sending shares of artificial intelligence and chip stocks lower while Bank of America shares dropped following a lower third-quarter profit.

The S&P 500 lost 83.96 points, or 1.08%, to end at 7,721.49 points, while the Nasdaq Composite fell 502.90 points, or 1.85%, to 26,701.48.