Global shares tumble as US inflation jumps to 3.7%, denting rate-cut hopes

Markets around the world opened in the red on October 15, 2026 after the US Labor Department reported that annual consumer price inflation rose to 3.7% in September, up from 3.4% in August and above economists' 3.6% forecast. Prices climbed 0.6% month-on-month, with more than half the gain coming from a 9.1% surge in gasoline prices; housing-related shelter costs rose 0.4%, the fastest monthly rate in five months. Core CPI, excluding food and energy, rose 0.3% on the month and 2.6% from a year earlier. On Wall Street the S&P 500 closed down 1.2%, the Dow lost 0.1% and the Nasdaq slid 2.0% to 29,951, its steepest drop since late July, with the tech sector off 2.4%. Australia's ASX 200 opened down 0.6% at 8,675 points and the Australian dollar slipped to 69.71 US cents. Bond yields surged as traders raised the odds of a Fed rate hike, with TD Securities now flagging December as the likely move. The print was the last inflation snapshot before the US midterm elections.