Hot CPI, PPI Ahead, Fed Beige Book Shows Price Pressures
By Tom LoBianco | Quincy News Correspondent
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Washington (Quincy News) — Market Recap: U.S. stocks fell Wednesday after hotter-than-expected inflation raised concerns about another Federal Reserve interest-rate increase. Selling in AI-related stocks added to the pressure.
September’s Consumer Price Index showed prices rose 3.7% from a year earlier, up from 3.4% in August, and 0.6% on the month. Gasoline prices jumped 9.1%, accounting for more than half the monthly increase. Core inflation, which excludes food and energy, rose 2.6% annually.
The S&P 500 fell 1.1%, the Nasdaq dropped 1.9% and the Dow slipped about 0.1%.
In early Thursday trading, WTI crude was around $95 a barrel and Brent crude was near $104.
Fed’s Economic Snapshot: The Federal Reserve’s Beige Book, released Wednesday, pointed to faster price increases in parts of the country as higher fuel and freight costs pushed up business expenses. Three of the Fed’s 12 districts reported robust price growth, and four said the pace of price increases had accelerated.
Most districts reported little or no change in consumer spending, with more than half saying higher-income households were driving sales. Labor-market conditions were little changed overall. Some businesses reported delaying hiring or reducing staff through attrition as AI investments increased productivity.
Nine districts reported economic growth, although most gains were slight or modest. The report provides a regional picture of business conditions ahead of the Fed’s October 27–28 policy meeting.
-Reporting by Jacqueline Policastro, Quincy News Correspondent
Today’s Focus: Nasdaq futures were lower early Thursday as selling in AI-related stocks continued amid concerns about the cost of financing heavy investment in the technology.
September’s Producer Price Index and retail sales reports arrive at 8:30 a.m. ET, offering fresh readings on wholesale inflation and consumer spending following Wednesday’s CPI report.
Fed Chair Kevin Warsh is scheduled to speak with IMF Managing Director Kristalina Georgieva in Bangkok at 11:30 p.m. ET Thursday.
ON THE SCHEDULE FOR THURSDAY, OCTOBER 15, 2026
-8:30 a.m. ET – September Producer Price Index, retail sales and weekly jobless claims
-Noon ET – EIA weekly petroleum report, delayed by Monday’s holiday
-11:30 p.m. ET – Fed Chair Kevin Warsh joins IMF Managing Director Kristalina Georgieva for a discussion in Bangkok
-Friday, 8:30 a.m. ET – September import and export prices
-Friday, 9:15 a.m. ET – September industrial production and capacity utilization
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