Hot CPI sinks tech; KOSPI plunges 7.6% as AI selloff spreads to Asia
Thursday, October 15, 2026 · as of Oct 15, 6:27 AM ET · covers the prior trading session
September CPI beat forecasts (3.7% headline, 2.6% core y/y), sending the Nasdaq down 1.88% as AI-infrastructure stocks led losses and investors rotated into health care and staples. The selloff deepened overnight in Asia, where the KOSPI fell 7.57% and the Nikkei 4.9%, while US futures point lower ahead of PPI and retail sales at 8:30am ET.
Key numbers
What mattered yesterday
- September CPI ran hot: headline inflation rose to 3.7% y/y (consensus 3.6%, prior 3.4%) and core to 2.6% y/y (consensus 2.5%). Trading Economics calendar
- Tech led a broad selloff: the Nasdaq fell 1.88% and the tech sector ETF (XLK) 2.98%; CoreWeave lost 15.46%. Tapeboard
- Money rotated to defensives: health care (XLV) gained 2.53% and staples (XLP) 2.22%, keeping the Dow nearly flat (-0.09%). Tapeboard
- The Treasury curve flattened: the 2-year rose 3 bp to 4.82% while the 10-year slipped 2 bp to 5.19%. U.S. Treasury
- Asia sold off overnight: Korea's KOSPI plunged 7.57% with a trading halt and Japan's Nikkei fell 4.9%. Trading Economics
Market snapshot
Why it mattered
Reported: CPI beat forecasts on both headline and core. Chicago Fed President Goolsbee called the figures "discouraging," though markets still priced roughly a 73% chance the Fed holds rates this month (Trading Economics). AI-linked chip stocks fell from Seoul to Europe, where ASML and Infineon dropped sharply.
Our read (commentary, not investment advice): A rising 2-year alongside a falling 10-year suggests markets are pricing tighter near-term policy and slower growth later. The Asian rout suggests crowded AI positioning is unwinding, not just a one-day CPI reaction.
Today's calendar
All times ET, Oct 15; consensus via Trading Economics.
- 8:30am: PPI m/m (consensus 0.5%, prior 0.4%); core PPI m/m (0.3%); retail sales m/m (0.3%, prior 1.2%); initial jobless claims (200K, prior 197K); Philly Fed (28.4)
- 12:00pm: EIA crude inventories
- 4:30pm: Cleveland Fed's Hammack; 11:30pm: Fed Chair Warsh speaks
- Earnings before the open: TSMC, Charles Schwab, BNY, PNC, U.S. Bancorp, Prologis. After the close: Alcoa, Interactive Brokers, J.B. Hunt
Business lens
- Dairy (USDA NDPSR, week ending Oct 3, vs prior week): 40-lb blocks $1.4579/lb (from $1.4955), butter $1.3694 (from $1.3871), nonfat dry milk $1.9369 (from $1.8692), dry whey $0.6814 (from $0.6757); barrels unavailable. September FMMO: Class III $16.04/cwt, Class IV $18.94/cwt (USDA AMS). CME spot Oct 14: blocks $1.5300 (+8.75¢), barrels $1.4525 (unchanged) (IndexBox/USDA DMN). Spot butter/NDM/whey, Class III/IV futures and weekly cheese/butter direction: unavailable.
- Feed (Oct 14 close): Dec corn $4.80¾ (-2¢), Nov soybeans $12.77¼ (-6½¢), Dec Chicago wheat $6.73¼ (+4¢), Dec KC wheat $7.15 (+2¾¢) (Grain Ledger); soymeal unavailable.
- Fuel: U.S. on-highway diesel $6.179/gal, week of Oct 12, down 2.0¢ w/w (EIA).
- Freight: unavailable; J.B. Hunt's results after today's close are the next read.
- Rates: SOFR 3.89%, 2-year 4.82% (above).
Our read (commentary): Butter near $1.37 is a heavy drag on Class IV; nonfat dry milk near $1.94 is what's holding Class IV above Class III. Block cheese bouncing on the CME is a modest early positive for October Class III after September's $16.04. With corn under $4.81 and diesel easing slightly, feed and fuel costs aren't the squeeze; milk price is.