Chip stocks claw back a 3.3% drop as AI-driven inflation faces a key CPI test

The S&P 500 closed flat at 7,805 after a round trip in memory stocks; Korea's KOSPI sank 5.5% on China supply fears before rebounding, and a Fed official warned AI price pressures are spreading.

Deepakshi

Kristal Research & Marketing team

14 Oct2 min

Key takeaways — AI summary

The S&P 500 slipped 0.02% to 7,805, the Nasdaq 100 fell 0.31% to 30,569 and the Dow lost 0.35%, with a flat US close masking chip stocks that fell as much as 3.3% intraday before recovering.
Memory names led the slide on reports of progress at China's CXMT: Korea's KOSPI dropped 5.5% overnight with SK Hynix down 10% and Samsung down 8%, though the KOSPI rebounded about 1.9% the next morning; Micron fell 3.6%.
Bank earnings opened strong but shares mostly fell: JPMorgan, Goldman Sachs, Wells Fargo and Citigroup all grew profits, with Citi posting its best third-quarter revenue in a decade; health care was the worst sector, down 1.32%, as J&J fell 5.6%, while energy led up 1.76%.
Chicago Fed President Austan Goolsbee warned AI-linked inflation is 'jumping out of its lane', while New York Fed President John Williams said one more 2026 hike looks appropriate but saw no need for one in 2027; the 10-year Treasury yield fell to 5.22%.
Oil was choppy as Saudi-led strikes hit Houthi oil sites in Yemen and a Houthi strike sparked a small fire at an Aramco building in Dhahran; WTI rose to $94.14, Brent eased to $105.69, and gold held at $4,162.

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