Stocks slumped on Wednesday as fresh inflation data revealed prices rose faster than expected, with the S&P 500 falling 1.1 percent—its worst day in over two months. The Consumer Price Index showed a 0.6 percent monthly increase, the largest in five months, and a 3.7 percent annual rise. The data intensifies pressure on the Federal Reserve to maintain aggressive rate hikes.
Meanwhile, concerns mount over AI-driven growth expectations, particularly for tech firms heavily reliant on bond financing. The Nasdaq dropped 1.9 percent, and the Philadelphia Semiconductor Index fell 4.3 percent, entering bearish territory. Seagate Technology, Western Digital, Sandisk, and Intel all declined sharply, though they remain up significantly from January.
Corporate bond stress is evident: Core Weave’s 2026 bonds fell to 77 cents on the dollar, yielding over 14 percent. Bloomberg’s index shows CCC-rated corporate bonds now trade at a 10 percent premium over government debt, signaling growing credit distress.
Source: New York Times Top Stories · Summarized by HeadlinesBriefing