- A sell-off in technology companies dragged down the stock market, with investors anticipating a key inflation report that will provide more insight into the Federal Reserve's next steps.
- The Nasdaq 100 fell 1.1%, underperforming. Apple, which announced the iPhone 15 and other products, fell nearly 2%. Its launches are well-known "sell-the-news" occasions. Oracle fell 13%, the most since 2002, as cloud sales slowed. A rise in crude oil prices boosted energy stocks, raising concerns about inflationary pressures. Banks gained ground as a result of a presentation at the Barclays Global Financial Services Conference.
- Treasury two-year yields, which are more sensitive to upcoming Fed moves, have risen above 5%. On Tuesday, the auction of 10-year US Treasury notes drew the highest yield since 2007 – a day after a sale of three-year notes did the same – as investors sought increased compensation for rising inflation and increased supply of US government debt. The dollar rose slightly.
- The consumer-price index for Wednesday is expected to show an increase in inflationary pressures. With the economy defying expectations and energy prices rising, analysts predict the biggest monthly increase in 14 months - and the swap market is pricing in the risk that it will be even higher. Traders expect the Fed to remain on hold at its policy meeting next week, with a roughly 50% chance of a hike in November.
