The US inflation rate rose more sharply than anticipated in October, prompting a significant decline in tech stocks on Wall Street. Data released by the Bureau of Labor Statistics showed that the annual inflation rate hit 4.2%, up from 3.7% in September. This increase was driven by higher prices for energy, food, and used cars, with core inflation—excluding volatile food and energy costs—rising to 4.1%.
The market reaction was immediate and severe. Major tech companies such as Apple, Amazon, and Microsoft saw their stock prices fall by more than 2% in a single trading session. The Nasdaq Composite index, heavily weighted toward technology stocks, dropped 1.8%, marking its worst performance in over a month. Analysts noted that the rise in inflation has raised concerns about the Federal Reserve’s ability to maintain its current interest rate policy.
This follows a period of relative stability in the US economy, where inflation had remained below the 4% threshold for several months. The recent spike has reignited fears of a potential slowdown in economic growth, particularly in the tech sector, which has been a key driver of recent market performance. Investors are now closely watching upcoming Federal Reserve meetings for signals on future interest rate adjustments.
