Wall Street Wobbles: Inflation Sparks Uncertainty Ahead

Wall Street faces uncertainty as September's CPI data reveals higher-than-expected inflation, complicating Federal Reserve interest rate plans. Futures dipped, jobless claims rose sharply, and airline stocks dropped due to disappointing revenue forecasts. Investors are now keeping a close watch on upcoming third-quarter earnings and geopolitical influences impacting the market.

Wall Street traders grappled with uncertainty on Thursday as inflation numbers for September came in higher than expected, challenging the Federal Reserve's interest rate trajectory. Futures took a hit with the Dow, S&P 500, and Nasdaq all showing declines.

The Consumer Price Index (CPI) revealed a 0.2% monthly and 2.4% annual increase, slightly above economists' predictions. This volatility comes amid rising jobless claims and disappointment in airline sector earnings.

As investors await imminent third-quarter corporate earnings reports, they remain cautious, especially with looming geopolitical impacts and an anticipated U.S. presidential election. The market's eyes are also on the Fed's next move concerning rate cuts.

(With inputs from agencies.)