Hot US inflation and a chip rout hit Wall Street; Asian shares fall as Fed officials play down a rush to raise rates
Bloomberg reported that US consumer prices rose 0.6% in September from August and 3.7% over the year, according to the Bureau of Labor Statistics, with petrol prices up 9.1%. Reuters said prices accelerated on dearer fuel and that core inflation was firmer. Wall Street fell on Wednesday, led by technology: Bloomberg said chip shares tumbled, the S&P 500's longest calm spell since 2020 ended and the Russell 2000 entered a correction 11% below its peak. Bank of America slid after a charge of about $1.2 billion. Reuters carried Fed official Daly saying hikes are likely needed but not urgently and Bowman saying there is time to wait and see, and said the dollar retreated from an 18-month high. In Asia on Thursday Reuters said AI trades crumbled, the FT said the tech sell-off deepened, and Bloomberg said the Taiwan dollar and Korean won led losses. Closing index levels were not confirmed in two sources.
Hotter inflation raises the chance of more Fed rate rises, which lifts borrowing costs and weighs on shares priced on future growth, especially in AI and chips.
Higher US rates and a firm dollar spill into global borrowing costs. Sharp falls in tech shares can touch pension and investment funds, though the ECB sets euro rates separately.
Some economists read the data as a case for further hikes.
Fed officials Daly and Bowman signalled there is no hurry.
Look at the next Fed decision, about two weeks away, and at how Europe opens today. DailyDrop shows no ISEQ or EUR/USD figure because neither could be confirmed in two sources.
DailyDrop Ireland edition No. 11 · Morning · THU., OCT. 15, 2026