Consumer prices climbed 3.7% in September, a reading driven higher by rising fuel costs, according to The New York Times. The figure landed ahead of expectations on core inflation, and markets reacted quickly.
The Nasdaq opened lower Wednesday as Treasury yields jumped, WSJ reported. CNBC noted that the 10-year Treasury yield rose after the core inflation number came in hotter than forecast.
Yahoo Finance reported that surging gas prices were a major factor behind the 3.7% CPI reading, and that the Federal Reserve is watching the data closely. Fast Company framed the report as a sign that inflation worsened last month, arriving as consumers deal with elevated prices ahead of the midterms.
The combination of sticky inflation and climbing yields puts pressure on rate-sensitive equities, which helps explain the weak start for the Nasdaq. Higher yields can weigh on growth stocks in particular, though the source material does not detail how individual sectors performed beyond the index's lower open.
The Fed's next steps remain the central question. Policymakers have been monitoring price data for signs that inflation is cooling, and a hotter core reading complicates that picture. What to watch next: whether yields hold at these levels and how Fed officials characterize the September report in the days ahead.
