August inflation data prints at 3.4% as surging oil prices and sticky core metrics force markets to price in a 25-basis-point Fed rate hike for next week.
Oil prices surged past $100 a barrel, stoking inflation fears and contributing to the CPI increase.
Hotter core CPI and rising odds of a Fed rate hike next week weigh on broad equity valuations.
Rising Fed rate hike expectations typically strengthen the dollar against major currencies.
Rising AI-driven demand for chips pushes computer prices up, but higher Fed rate hike odds may pressure high-growth tech stocks.
US consumer prices climbed 3.4% in August, matching economist estimates as energy costs surged. While headline inflation remains elevated, hotter-than-expected core data has pushed market expectations for a September Federal Reserve rate hike to 85%.
Despite some cooling in annual core inflation, headline price growth remains well above the Fed's 2% target, and recent data on jobs and producer prices suggest the economy remains resilient enough to absorb further tightening.