AI-related stocks plummeted Wednesday after September’s consumer price index came in hotter than expected at 3.7% year-over-year, with the headline index rising 0.6% month-over-month. Over half of this monthly increase was driven by a 9.1% surge in gasoline prices, reflecting inflationary pressures linked to the Middle East conflict. Expectations for additional Federal Reserve rate hikes have climbed to approximately 37%, raising concerns about a too-rapid tightening of capital costs for the technology sector. The semiconductor sector ETF (SOXX) fell another 4%, extending its losing streak to seven consecutive sessions, representing a decline of nearly 12%.
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