Hot Inflation + Rate-Hike Fears (Tech/AI Selloff)

Obigoot
10-15

Inflation just slapped the AI trade in the face — and the market is still reeling.

Yesterday’s September CPI came in hotter than expected at 3.7% year-over-year (vs. 3.6% forecast and 3.4% previously). Core was also sticky. That immediately raised the odds of more Fed rate hikes, sending the Nasdaq down ~1.9% and the S&P 500 down ~1.1% — its worst day since July.

AI and semi names took the biggest hits (Nvidia, AMD, CoreWeave and others sold off hard) because higher rates make the massive AI spending boom more expensive to finance. Futures are still weak this morning as the selloff continues.

Watch today’s PPI, retail sales, and jobless claims at 8:30 AM ET for the next signal on whether inflation is cooling or staying hot.

Amazon Leads; Can QQQ's Rebound Survive Earnings?
QQQ gained 1.21% and SPY 0.42% as the AI selloff eased and Amazon’s 4.98% jump lifted tech and data-center stocks. Bulls note the rebound broadened into memory, semiconductors, and networking. Bears warn that upcoming SpaceX, Meta, and Tesla earnings, along with October rate-hike risk, could renew valuation pressure. Should investors hold QQQ, rotate into SPY for diversification, or wait for clearer earnings signals?
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Comments

  • Obigoot
    10-15
    Obigoot
    ppi came in at 6.3% against foreast of 5.3%
    either analysts rrally sucks....or we are dead tonight
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