Stock Market Today: Hot Inflation Sinks Tech Stocks, BofA Falls, TSMC Record Profit | Oct. 15

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The market experienced a significant downturn, with the S&P 500 and Nasdaq posting their worst day since July. The S&P 500 closed down 1.11% at 7,718.94, and the Nasdaq Composite fell 1.88% to 26,928.87. The Dow Jones Industrial Average also declined, closing down 0.09% at 51,621.46. This broad market weakness was exacerbated by disappointing inflation data, with September CPI coming in hotter than expected at 3.7% year-over-year, driven by a 9.1% increase in gasoline prices. Core CPI also exceeded forecasts. This has heightened concerns about further Federal Reserve rate hikes. Technology stocks, particularly AI and chip-related companies, were hit hard. Nvidia dropped 3.16%, ASML fell 3.94%, and the SOX chip index was down 4.30%. Other notable decliners included Marvel (-8.73%), Oracle (-8.83%), Dell (-11.27%), and CoreWeave (-15.46%). Bank of America saw its stock price fall by 4.8% after reporting a $1.2 billion penalty and missing revenue expectations, although its trading revenue saw a significant increase. Morgan Stanley, however, beat earnings expectations. In contrast, TSMC reported a record profit for its sixth consecutive quarter, with net profit at NT$763 billion and revenue at NT$1.49 trillion, beating expectations. However, its US-listed shares fell 1.5% pre-market. Futures trading indicated continued pressure, with Nasdaq 100 futures down 1.19% and S&P 500 futures down 0.32%, while Dow futures were up slightly. The outlook for the coming week includes key economic data releases such as retail sales and PPI, followed by the Federal Reserve's next rate decision and PCE data.

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