The S&P 500 and the Nasdaq composite posted their worst sessions since July on October 14, 2026, led lower by AI stocks. A hotter-than-expected September CPI report revived worries about Federal Reserve rate hikes and pressured companies that rely on heavy spending.
The S&P 500 fell 1.1% and the Nasdaq composite dropped 1.9% on October 14, 2026, the worst session for both indexes since July. AI stocks led the retreat.
The trigger was a September Consumer Price Index reading that came in hotter than Wall Street wanted. Headline inflation rose 3.7% year over year versus 3.6% expected.
Hot CPI revives rate-hike worries
Consumer prices rose 0.6% month-over-month in September. The overshoot revived worries that the Federal Reserve could respond with interest rate hikes.
Higher rates hit hardest where companies spend enormous sums up front, and AI infrastructure requires heavy capital expenditure, much of it funded with borrowed money. Treasury yields also moved sharply higher after the release, with the US 10 year reaching a high of 5.329%.
Chip and AI names take the brunt
The selloff concentrated in the names most closely tied to the AI buildout. CoreWeave fell 15.46%, Nebius lost 10.08% and Marvell Technology dropped 8.72%. AMD fell 5.73% and Nvidia 3.16%.
The Philadelphia Semiconductor Index extended its losing streak. Earlier pressure had come from negative reports about OpenAI's revenue projections, according to Crypto Briefing.
Selling spreads beyond tech
The damage reached past technology. The Russell 2000 lost nearly 2%, while the Dow fell just 0.09%. The S&P 500 closed at 7,718.94, and the Nasdaq Composite at 26,692.87.
Apple was the lone gainer among the Magnificent Seven, up 0.50%. Traders now turn to Thursday's September PPI report at 8:30 AM ET for the next inflation test.
Sources: Crypto Briefing, Investinglive
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