U.S. Inflation Rises 0.4% in October, Pressuring Nasdaq Amid Bets on Tighter Rates
Key Facts
The U.S. Consumer Price Index for All Urban Consumers rose 0.4% month over month in October 2026, after a 0.6% increase in September, according to data released Tuesday by the Bureau of Labor Statistics. The reading came in above market expectations of 0.3%, while the core index, which excludes food and energy, rose 0.3%, versus expectations for a 0.2% increase. The core gain matched the index’s readings in September and August, keeping underlying price pressures at a steady monthly pace for three months. In a market snapshot at 9:31 a.m. New York time, the Nasdaq 100 fell 1.1% as stocks and bonds declined after the data release. That followed Monday’s session, when the Nasdaq Composite rose 2.7% to 25,253.14 points, in a recovery that recouped some of the previous week’s losses.
Housing was among the largest contributors to the monthly increase, with its index rising 0.3% in October and accounting for more than 30% of the headline index’s advance. The food index rose 0.5%, while the energy index gained 0.7% during the month. Two-year U.S. Treasury yields rose 15 basis points to 4.71%, as money markets shifted to pricing in at least two rate hikes by mid-2027. Lindsay Rosner of Goldman Sachs Asset Management said the inflation reading strengthened the case for a more aggressive tightening cycle, adding: "A December rate hike is our firmly established base case despite the growing concerns around artificial intelligence." Federal Reserve Governor Christopher Waller said he supports a rate hike in December and could back a half-percentage-point increase if inflation continues to accelerate, to protect the central bank’s credibility.
In the artificial intelligence sector, Anthropic’s filings with the Securities and Exchange Commission showed that it had applied to list its shares on Nasdaq under the symbol ANT, and that the company and selling shareholders intend to offer 825 million Class A shares. The Associated Press reported that the proposed price range is $70 to $78 a share, which could raise more than $61 billion if priced at the midpoint of the range. The agency estimated the company’s target valuation at about $1.3 trillion and said its expected Wall Street debut is set for this month. If the potential proceeds at the midpoint of the range are realized, they would remain below the record $86 billion raised by SpaceX’s offering in June. The regulatory filing data reflect the company’s rapid expansion: revenue reached $16.3 billion in the six months ended June 30, 2026, compared with $1.2 billion in the same period of 2025.
Alongside revenue growth, Anthropic recorded an operating loss of $693 million in the first half of 2026, down from $2.1 billion in the same period a year earlier. On prices, the Bureau of Labor Statistics did not publish year-over-year changes for most Consumer Price Index series in October, after it was unable to collect October 2025 data during the government funding lapse. The current monthly reading and the month-over-month comparison with September remain among the report’s most prominent available figures, along with details on the index components. The U.S. Producer Price Index for October is scheduled for release Friday, November 13, 2026, at 8:30 a.m. Eastern time. The next Consumer Price Index report, for November, had been scheduled for release Thursday, December 10, at 8:30 a.m. Eastern time, while the Federal Reserve set its next meeting for December 8 and 9, 2026.