Key facts
- Nasdaq Composite fell 1.9%, S&P 500 down 1.1%.
- SOX chip index down 4.2%, its sixth consecutive day of losses.
- Coreweave's July bond maturing in 2031 yielded 16% and fell to a new low.
- China's trade surplus is on track for another $1 trillion annually.
US stocks declined sharply on Wednesday, with the Nasdaq Composite experiencing its largest drop in three months. Stronger-than-expected inflation data for September has put a Federal Reserve rate hike back on the table for later this month, which also boosted the dollar to an 18-month high. The technology sector was particularly hard-hit, with the SOX chip index falling 4.2% and extending its losing streak to six days. Concerns are mounting over the financing costs for artificial intelligence infrastructure, as evidenced by the sharp fall in AI-related corporate bonds, with some yielding as high as 16%. Meanwhile, China's trade surplus widened more than anticipated in September, driven by surging exports of semiconductors and green-tech products, contributing to global imbalances.