Wall Street on its worst day since July, the Nasdaq fell about 2%

The worst trading day on Wall Street since July, following the release of the US Consumer Price Index, which showed an acceleration in annual inflation to 3.7%, above expectations. Concerns about another Fed rate hike led to sharp declines in technology and chip stocks, while pharmaceutical stocks stood out with gains as investors shifted to defensive sectors.

Wall Street trading closed with sharp declines, the worst since July, following the release of the US Consumer Price Index for September. The index rose 0.6% from the previous month, in line with expectations, but annual inflation accelerated to 3.7%, above the forecast of 3.6% and compared to 3.4% in August. The core index also rose to 2.6% on an annual basis, above expectations. The data heightened concerns that the Fed would be forced to keep interest rates high for a longer period, and even consider another hike. The Nasdaq fell by nearly 2%, the S&P 500 weakened by more than 1%, and the Russell 2000 lost 1.9%. Declines were particularly prominent in the chip and memory sectors: the SOXX index fell by 4.5% and the DRMA fund dropped by more than 5% in one day. In contrast, healthcare and pharmaceutical stocks showed relative strength as investors moved to defensive sectors. The article concludes with a clarification that it should not be considered investment advice.