The core figure rose 3.3% year-over-year, versus an estimated 2.3%


New York (Reuters): Wall Street opened lower on Thursday as hotter-than-expected September inflation data reinforced expectations of a 25-basis-point rate hike by the Federal Reserve at its upcoming meeting.
The closely watched Consumer Price Index rose 0.2% on a monthly basis and 2.4% on an annual basis, with both figures being slightly higher than estimated by economists Reuters polled.
The core figure, which excludes volatile food and energy prices, rose 3.3% year-over-year, versus an estimated 2.3%.
The Dow Jones Industrial Average (.DJI), opens new tab fell 75.96 points, or 0.18%, to 42,433.87, the S&P 500 (.SPX), opens new tab lost 15.88 points, or 0.27%, to 5,776.16 and the Nasdaq Composite (.IXIC), opens new tab lost 69.40 points, or 0.38%, to 18,222.22.
The Russell 2000 (.RUT), opens new tab, which tracks economically sensitive small-cap stocks, lost 1.09%.
Rate-sensitive sectors fell, with Real Estate (.SPLRCR), opens new tab losing 0.6%, while Information Technology (.SPLRCT), opens new tab dropped 0.5%.
After the inflation data was released, traders firmed bets on a 25-bps cut in November at 86.9%, with a 13.1% chance of no change at all, according to CME's FedWatch.
"The market's reacting because you're pricing out the possibility of big Fed rate cuts and the risk that the Fed isn't going to be as supportive to markets," said Cameron Dawson, chief investment officer at NewEdge Wealth.
However, weekly jobless claims also rose to 258,000 for the week ending Oct. 5, versus an estimate of 230,000.
Annual inflation in the US eases back, but by not as much as expected.
"The CPI data coming in hotter than expected, and at the same time (that) initial jobless claims really picked up, is certainly a confusing message for markets," Dawson said.
"Whether or not that means the Fed is going to be able to deliver the full extent of its expected interest-rate cuts is a good question."
Gold prices decline amid global market downturn
- 2 hours ago

SC decision: ECP issues notification to restore reserved seats
- 4 hours ago
Iran confirms damage to nuclear site after US strikes
- 2 hours ago

Court issues non-bailable warrants for CM Gandapur
- 2 hours ago

PDMA issues alert over rising water levels in Punjab’s rivers
- an hour ago
Trump confirms progress on Gaza ceasefire deal
- 2 hours ago

Taxes on more than 40 items reduced
- 4 hours ago
Father murders son over association with transgender individuals in Karachi
- 32 minutes ago
Sheikh Hasina sentenced to 6 months for contempt of court in Bangladesh
- 3 hours ago
Karachi gas explosion: 7 injured including children
- 3 hours ago

PSX rallies for second consecutive day in new fiscal year
- 3 hours ago

US dollar gains in interbank and open markets
- 2 hours ago