Stock Market Update
14-Oct-26 09:08 ET
Futures point to lower open following CPI release
Market is Closed
[BRIEFING.COM] S&P futures vs fair value: -27.00. Nasdaq futures vs fair value: -263.00.
Total CPI increased 0.6% month-over-month (Briefing.com consensus: 0.6%), led by a 5.2% jump in the energy index, following a 0.4% increase in August. The September increase left total CPI up 3.7% year-over-year versus 3.4% in August.
Core CPI, which excludes food and energy, increased 0.3% month-over-month (Briefing.com consensus: 0.2%), pushed by a 0.4% increase in the shelter index, following a 0.3% increase in August. That left core CPI up 2.6% year-over-year versus 2.4% in August.
The key takeaway from the report is the acceleration in inflation away from the Fed's 2.0% inflation target. That is going to accelerate concerns about a possible tightening of Fed policy at the October FOMC meeting, not to mention deficit worries as cost-of-living adjustments for 2027 for SSI recipients are on track to see their largest increase in three years.
The CME FedWatch tool now shows a 49.3% probability of a rate 25-basis point rate hike at the October FOMC meeting, up from 21.6% before this morning's CPI release.
