After the release of the U.S. CPI data, the U.S. dollar index briefly rose by about 30 points, currently reported at 102.52.

Written by: Bao Yilong, Zhang Yaqi, Wall Street Watch

U.S. inflation data for September surpassed expectations, reigniting market concerns about the Federal Reserve maintaining high interest rates, prompting U.S. stock futures to erase earlier gains and U.S. Treasury yields to rise.

Data released by the U.S. Bureau of Labor Statistics on Wednesday showed that the September Consumer Price Index (CPI) rose by 0.6% month-on-month, marking the fastest pace in five months, with a year-on-year increase of 3.7%. After the data was released, U.S. stock futures quickly turned negative, with the S&P 500 index set to record a decline for the third consecutive trading day, and the yield on 10-year U.S. Treasury bonds rose by 6 basis points to 5.27%. Spot gold briefly fell by about $30, currently reported at $4128.60 per ounce.

Amid inflationary pressures, high oil prices further exacerbated market anxiety. Brent crude oil hovered around $106 per barrel, with traders continuously weighing the latest tensions in the Middle East and the uncertainties of market prospects. Meanwhile, Federal Reserve Vice Chair Michelle Bowman stated before the data release that she believes there is no urgent need for the Fed to raise interest rates, but emphasized that inflation levels remain too high.

• U.S. stock futures briefly turned lower, with all three major index futures declining.
• The yield on the 10-year U.S. Treasury bond briefly rose, currently reported at 5.189%.
• The yield on the 2-year U.S. Treasury bond increased by 10 basis points to 4.89% for the day.
• Non-U.S. currencies fell broadly, with the USD/JPY currently reported at 158.73, EUR/USD at 1.1152, and NZD/USD falling below 0.56, down 0.19% for the day.
• Brent crude oil rose by 0.6%, reported at $106.33 per barrel.
• Spot gold briefly fell by about $30, currently reported at $4128.60 per ounce.
• Bitcoin remained roughly flat around $83,357, while Ethereum dipped 0.3% to around $2,500.

Inflation Exceeds Expectations, Core Price Pressures Persist

According to data from the Bureau of Labor Statistics, the September CPI rose by 0.6% month-on-month and 3.7% year-on-year. Excluding food and energy, the core CPI rose by 0.3% month-on-month and 2.6% year-on-year. The stickiness of core inflation indicates that price pressures have not significantly receded due to previous monetary tightening measures, adding complexity to the Federal Reserve's next decision.

Michelle Bowman stated on Wednesday during the International Monetary Fund and World Bank annual meetings in Bangkok that although inflation remains at an excessively high level, she currently does not believe there is an urgent need for the Fed to raise interest rates further. "We have time to observe the evolution of financial conditions and the economic situation before deciding whether further action is needed," she said. Bowman's remarks continue the Federal Reserve's recent cautious tone—coming after an interest rate hike last month, officials are inclined to wait for data changes before making further decisions.

After the inflation data was released, financial markets reacted quickly. The previous upward trend in stock futures was completely reversed, with the S&P 500 index heading for a third consecutive decline. The yield on 10-year U.S. Treasury bonds rose to 5.27%, leading to a decline in bond prices. Brent crude oil fluctuated around $106 per barrel, with the latest developments in the Middle East and uncertainties in the energy market continuing to influence oil prices and support overall inflation expectations.

South Korea's KOSPI Falls for Six Consecutive Days Below 6000 Points: Foreign Investment Net Sell of 789.6 Billion KRW in a Single Day

The South Korean benchmark index KOSPI reversed early gains on October 14, closing down 1.27% and falling below the 6000-point mark. Foreign investors recorded a net sell of 789.6 billion KRW on that day, becoming the direct driver of the index's reversal from gain to loss. This marked the sixth consecutive trading day of decline for the index, following a previous day's intraday drop that widened to 5.1%, triggering the Korea Exchange's Sidecar circuit breaker mechanism.

The breach of the 6000-point threshold signifies that the key support established after the index rebounded more than 20% from its low on July 30 has been breached. The 6000-point mark has historically been a location with dense defenses for trend trading and quantitative strategies; once breached, the concentration of stop-loss orders may further amplify selling pressure.

The continuous outflow of foreign capital has been an important source of pressure in this round of decline. According to Bloomberg, foreign investors have withdrawn a net $131 billion from South Korean stocks this year, the largest among major markets in Asia; meanwhile, Samsung Electronics and SK Hynix's combined historic maximum share repurchase plan of approximately 55 trillion KRW has concluded ahead of schedule, leading to a simultaneous loss of this critical buying support in the market.