Inflation and Interest Rates Stir Global Markets

Global stocks dropped and U.S. Treasury yields rose as investors assessed Federal Reserve interest rate strategies. Slightly higher-than-expected U.S. consumer prices and a rise in jobless claims have affected market outlooks. Oil prices surged amid higher fuel demand following Hurricane Milton's impact in Florida.

Global stocks saw a decline while U.S. Treasury yields climbed as investors evaluated Federal Reserve interest rate decisions after labor market and inflation data. U.S. consumer prices rose slightly more than expected in September, with food costs driving the increase, marking the smallest annual inflation rise in over three years.

Weekly initial jobless claims surged, with a significant portion attributed to distortions from Hurricane Helene. These figures initially supported expectations for a Federal Reserve interest rate cut but retracted after comments from Federal Reserve officials. The FedWatch Tool highlighted an 81.8% chance for a 25 basis points cut, down from 90%.

Despite recent private-sector signals, Federal Reserve officials, including Raphael Bostic, suggested caution, indicating the possibility of skipping a rate cut. As Treasury yields and the dollar index fluctuated, oil prices rose notably following Hurricane Milton's impact on fuel demand in Florida.

(With inputs from agencies.)