The Nasdaq fell 4.5% last week, its worst weekly decline since June, while the S&P 500 dropped 2% as inflation data came in hotter than expected. September’s consumer price index rose 3.7% year-over-year and producer prices jumped 1.3% monthly and 6.3% annually, raising concerns that the Federal Reserve may keep interest rates elevated longer. Cybersecurity stocks Palo Alto Networks and CrowdStrike fell more than 18% and 17% respectively as investors rotated out of AI into defensive sectors. Meta Platforms and Microsoft emerged as rare bright spots, with Meta rallying on new AI model releases and Microsoft hitting a record high. Third-quarter bank earnings were solid, with Bank of New York raising its full-year outlook.
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