Wall Street Falls as US Inflation Rises and AI Stocks Slide

The Dow Jones Industrial Average fell 0.1 percent, the broad S&P 500 index fell 1.1 percent and the tech-heavy Nasdaq Composite fell 1.9 percent.

US inflation, as measured by the CPI, rose to 3.7 percent in September, up from 3.4 percent in August.

This was the highest annual figure since May and slightly higher than the market forecast. The market now fears another interest rate hike soon.

A broad decline in AI-related stocks also weighed on the market. Companies such as Nvidia, Broadcom, Qualcomm, AMD, Micron, Oracle, Sandisk and CoreWeave fell by varying amounts.

Bank of America fell 4.8 percent the day after the US Treasury Department fined the bank the equivalent of just over SEK 12 billion (about $1.1 billion) for violating money laundering laws and sanctions.