Hot CPI Fuels Rate Hike Bets, Tech & Banks Drag Market Lower

By Tharuniyaa Lakshmi and Purvi Agarwal

Oct 14 (Reuters) - Wall Street’s main indexes edged lower on Wednesday after a hotter-than-expected inflation report boosted bets of an interest rate hike this month, while investors parsed more big bank earnings.

Data showed US consumer prices accelerated in September amid a surge in gasoline costs, leading traders to bolster bets of a rate hike in October. They now see a 46% chance of a quarter-point increase compared with a 21.6% chance before the fig

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CoreWeave’s stock and bonds were both hit on Wednesday as investor fear grew that some technology companies are borrowing too heavily for the artificial intelligence build-out.

Shares of the so-called neocloud nosedived 16%, while yields on its debt jumped higher. The yield to maturity on its 9.625% bond due in 2032 is sitting at 14.8%, while that of its 9.75% bond due in 2031 is around 14.9%. Bond yields move inversely to prices.

While investors were once excited about gettin