US stocks sharply declined for the week, as September’s CPI report showed inflation is running hotter than expected. The S&P 500 fell by 4.7% and the Dow was 4.1% lower for the week. Foreign markets declined with the FTSE All World Ex US down 2.7% for the week. US crude was lower for the week ending at $85.11 per barrel, down from $86.79 the week prior. The yield on the 10-year Treasury ended the week higher at 3.45% up from 3.32% the week prior.
CPI rose 8.3% in August from the same month a year ago, above the 8.1% forecasted, but down from 8.5% in July and from 9.1% in June. Core CPI, which excludes energy and food prices, increased 6.3% in August from a year earlier, higher than the 6.1% expected and above the 5.9% rate in both June and July. On a monthly basis, core CPI rose 0.6% in August, above the 0.3% increase expected and double the increase from July.
Mortgage rates rose above 6%, their highest level since 2008, more than double the rate from a year ago.
The railroads and union leaders reached a tentative labor deal to avoid a nationwide strike.