On Thursday, US benchmark equity indexes ended lower, prompted by fresh official data indicating that consumer inflation increased at a rate surpassing projections for September. The latest findings from the Bureau of Labor Statistics reveal that the US consumer price index experienced a 0.2% uptick last month, matching the increase noted in both July and August.
This result exceeded the anticipated 0.1% growth as per a survey conducted by Bloomberg. Year-over-year, inflation showed a slight decrease to 2.4% from August’s figure of 2.5%, although it remained above the consensus forecast of 2.3% established by Wall Street. Market insights, gleaned from the CME FedWatch tool, indicate that the probability of the Federal Open Market Committee opting to lower interest rates by 25 basis points next month remains steadfast at 80%—a figure unchanged since Wednesday. In a notable shift, last month witnessed the Federal Reserve implementing a 50 basis point reduction in its benchmark lending rate.
This move contrasted starkly with the consensus forecast—which was suggesting a more modest quarter-percentage-point decrease as compiled by Bloomberg. Meanwhile, November West Texas Intermediate crude oil futures surged by $2.61, closing at $75.85 per barrel. In tandem, December Brent crude, regarded as the global standard, also experienced a rise of $2.58, concluding at $79.16.
These increases come amid ongoing concerns regarding the potential for a broader conflict in the Middle East, which continues to underpin oil prices, despite a backdrop of tepid demand. In the technology sector, CrowdStrike ($CRWD) saw its shares increase by 5.7%. The cybersecurity firm has announced a strategic partnership with Plurilock Security to offer solutions aimed at securing critical infrastructure across democratic nations and economies from cyber threats. Additionally, Delta Air Lines ($DAL) issued a cautionary outlook for Q4 earnings, forecasting subdued travel demand in the wake of the upcoming US presidential elections in November.
This follows a previous quarter where the airline's net income fell short of market expectations, although revenue figures exceeded projections. Following this news, Delta’s shares declined by 1.7%..