Hot US inflation collided with an AI-sector selloff to drive a risk-off session across global markets.
September US CPI came in above expectations — headline at 3.7% YoY, core at 2.6% — with a 9.1% monthly jump in gasoline tied to Middle East energy disruptions doing most of the work. The published research consensus reads the print as the trigger for a Treasury yield spike, repriced Fed odds (analyst estimates for an October hike range from 29% to 50%), and broad equity weakness.
Running alongside, researchers point to an independent shock from AI names: the KOSPI fell more than 7% on Samsung and SK Hynix losses, and US tech slid on funding concerns around CoreWeave's distressed bonds. Some analysts flag the unusual intraday reversal — the dollar and yields first surged on CPI, then gave back as a growth scare took over.
A contrarian thread argues this inflation is largely temporary and Middle East-driven, while another camp sees structural goods inflation lingering well into 2027. On the BOJ, board member Koeda's hawkish warning on yen weakness has researchers watching the October 30 meeting closely.