Wall Street has its worst day since July as U.S. inflation reaches 3.7% and chip stocks tumble
U.S. inflation rose to 3.7% in September, hotter than expected, according to CNN, BNN Bloomberg, The Guardian, Radio-Canada and Global News; CNBC tied it to gasoline. U.S. stocks then had their worst day since July, BNN Bloomberg reported, and Bloomberg said the S&P 500 ended its longest stretch of calm since 2020. Chip shares fell even after ASML raised its sales outlook, the Globe and Barron’s said. Bank of America fell on a $1.21-billion fine over anti-money laundering shortcomings, Bloomberg Television and the Globe reported. Reuters reported Asian markets selling off and Nasdaq futures down about 1% early Thursday. Two Fed officials sent mixed signals on a rate hike, Reuters reported. We could not confirm closing levels for Wall Street, the S&P/TSX Composite or USD/CAD from two sources.
Hotter inflation raises the odds of higher interest rates, which hurt the high-priced technology shares that have led the market, and weighs on bond yields that set borrowing costs.
If you have a mortgage up for renewal, the Globe and Mail notes fixed rates have jumped even though the Bank of Canada has not moved. Check your lender before locking in.
Bulls say strong earnings, such as ASML’s outlook, show that demand for chips remains intact.
Bears say inflation and higher yields make the sell-off a repricing of an AI boom that was running ahead of the numbers.
Watch the Nasdaq futures at the open and the Fed’s tone. We give no index levels because we could not confirm them from two sources.
DailyDrop Canada edition No. 11 · Morning · THU., OCT. 15, 2026