U.S. equity markets experienced a midday decline on October 14, 2026, as a hotter-than-expected inflation report stoked expectations that the Federal Reserve may continue raising interest rates. The Nasdaq 100 fell 1.0% to 30,265, while the S&P 500 dropped 0.7% to 7,751. The Dow Jones Industrial Average slipped just 0.1%, or 46 points, to 51,624.
Headline consumer prices rose 3.7% from a year earlier, surpassing the 3.6% forecast and increasing from 3.4% in August. Gasoline prices jumped 7.1% on the month, and core CPI also came in above expectations at 2.6%. In response, Treasury yields climbed, with the 2-year yield rising 14 basis points to 4.93% and the 10-year gaining 10 basis points to 5.31%. The U.S. dollar index hit an 18-month high near 102.75.
Within the "Magnificent Seven" group, Tesla Inc. (NASDAQ: TSLA) was among the decliners, sliding 1.8%. Apple Inc. bucked the broader trend with a 1.1% gain. Other notable losers included Meta Platforms Inc., which fell 2.1%, and Nvidia Corp., which dropped 1.9%.
On the sector level, the Technology Select Sector SPDR Fund (NYSE: XLK) was the weakest, down 1.6%. The iShares Semiconductor ETF (NASDAQ: SOXX) fell 2.3% for a seventh consecutive session, leaving it nearly 10% below its October 5 close. Conversely, the Health Care Select Sector SPDR Fund (NYSE: XLV) led gains with a 1.6% rise.
