S&P 500 and Nasdaq close sharply lower as AI selloff drags down stock market
Wall Street is pulling back from chipmakers and other tech companies amid concerns about the debt incurred to build out AI.
Top News
India notifies first tariff cuts under New Zealand FTA
More: ThePrint
Russia Sanctions Waived, AI Debt Concerns, Making 'GTA VI'
Separate development
U.S. yields fall for the week as AI debt jitters drive traders to safe-haven bonds
More: CNN, The Motley Fool
Trump Waives Russia Energy Tariffs, Sanctions in Graham Law
More: Reutersopen, Nikkei Asia, CBS Newsopen, The Economic Timesopen
India
Rupee rallies for 6th straight session; ends 10 paise higher at 94.89 against US dollar
India's exports up 23% to $44.4 billion in Sep; trade deficit narrows to $30.21 billion
Also in India: Deloitte projects India's GDP to grow 7.1-7.3% in FY27
United States
U.S. budget deficit swells to almost $2 trillion for fiscal 2026, up 12% in a single year
Bets on Fed rate hold in October strengthen after Warsh comments
Lessons in communication for Kevin Warsh. With Chris Giles
Prediction markets:
KalshiWill the Federal Reserve Hike rates by 0bps at their October 2026 meeting?
Fed holds rates: 87% · Closes · Quote captured
PolymarketWill there be no change in Fed interest rates after the October 2026 meeting
87% · Closes · Quote captured
More: Bloomberg, The Business Times, Euronewsopen
Also in United States: US consumer prices accelerate in September on costlier gasoline; core CPI firmer
Trump’s Russia Sanctions Waiver Called Mistake by Key GOP Allies
More: CNBCopen, Financial Times, Axiosopen, Reuters via Investing.comopen
Meta releases open-weight Muse Spark model for coding, agentic tasks
More: Axios, SiliconANGLE, Hugging Face, TechCrunch, The Verge
Israeli settlers torch cars and trees in West Bank villages, disrupting Palestinians' olive harvest
PodcastForeign PolicyOct 16 at 1:22 PM PDT
Israeli Settlers Launch a Coordinated Attack in the West Bank
Deloitte projects India's GDP to grow 7.1-7.3% in FY27
US consumer prices accelerate in September on costlier gasoline; core CPI firmer
CPI and the AI Trade
Prediction markets:
KalshiWill the rate of CPI inflation be above 3.9% for the year ending in November 2026?
Above 3.9%: 45% · Closes · Quote captured
Gold struggles for direction as Fed rate-hike bets keep buyers cautious
Later report: Gold, silver diverge as Fed-pause expectations collide with rising crude prices Kitco ·
AnalysisinvestingLiveOct 14 at 4:29 PM PDT
ICYMI: Citi now expects a December Fed rate hike after hotter September US inflation
Citi’s shift removes one of the last prominent holdouts against a December hike, so the debate moves from whether the Fed tightens again to when. The swing in October pricing, which spiked after the data and then faded, shows traders are uncertain about the timing and are likely to react strongly to any Fed speaker who leans either way before the meeting. A higher-for-longer path, with cuts pushed out to mid-2027, tends to support the US dollar and Treasury yields and to weigh on rate-sensitive assets. The core detail matters most: inflation spreading beyond gasoline is harder for the Fed to look through than an energy spike alone. -- The hot CPI print was enough to turn Citi from a Fed sceptic into a December hiker, and markets are now asking whether October comes first. Summary: Citi now expects a 25bp Fed rate hike in December, after previously forecasting no further moves this year T
Euro Snaps Five-Week Losing Streak With Warsh Remarks
Later report: Euro: Bullish reversal builds above support – Scotiabank FXStreet ·
AnalysisinvestingLiveOct 14 at 7:27 PM PDT
ECB’s Santos Pereira says euro zone inflation is not spreading beyond energy
The comments support the view that the ECB can hold its nerve on an energy-led price shock, which should limit pressure for tighter policy in the near term and leave the euro without a fresh rate-driven boost. His attribution of higher yields to fiscal issues rather than inflation is notable for bond traders, since it suggests the ECB sees the selloff as a matter for governments rather than for monetary policy. That points to limited appetite to lean against yields through policy. Natural gas is the swing factor, and a cold start to winter would quickly test his relaxed stance and could revive hawkish pricing. Álvaro Santos Pereira is the governor of the Banco de Portugal, Portugal’s central bank. That makes him a member of the ECB’s Governing Council. The ECB can live with an energy shock as long as it stays an energy shock, and so far, says Santos Pereira, it has. Summary: ECB policyma
More: investingLiveopen
Weekend Reading
Federal Reserve Bank of New York · Oct 15 at 4:00 AM PDT
Econbrowser · Oct 16 at 11:26 AM PDT
Foreign Affairs · Oct 16 at 1:00 AM PDT
More News
Bloomberg · Oct 17 at 1:00 PM PDT
Bloomberg · Oct 16 at 8:03 PM PDT
Anadolu Agency · Oct 16 at 3:27 AM PDT
Bloomberg · Oct 15 at 11:50 PM PDT
Bloomberg · Oct 17 at 10:30 AM PDT
Earlier
Reuters · Oct 15 at 4:45 PM PDT
Reuters · Oct 15 at 8:50 AM PDT
South China Morning Post · Oct 15 at 11:13 PM PDT
FXStreet · Oct 14 at 8:14 PM PDT
