Market Close: Stocks Lower, AI Shares Hit by Debt Worries, Mortgage Rates Stay High • 10/14/26

0:00See NBC Business News Update. I'm Jessica Ettinger. Wall Street opens Thursday morning after a down day for the major averages Wednesday. Inflation rose last month, sending bond yields higher. They turned around and fell. The yield on the 10-year note below 5.2 percent. But markets did not recover. There was a sell-off in some AI-related stocks. Concerns about too much spending on AI and too much debt, hitting shares of names like CoreWeave and Oracle. The Dow was down 48 points, led lower by shares of NVIDIA, which were down 3%. The S &P 500 indexed down 86 points. That was more than 1%. The Nasdaq fell 511 points.

0:43That was 1.8%. Companies whose shares hit fresh all-time highs on Wednesday include a lot of the oil names. Chevron, Exxon, Marathon Petroleum, ConocoPhillips, Valero, and Phillips 66. Oil prices were higher Wednesday. a container ship sank in the Gulf of Hormuz. Iran has been increasing attacks on ships to the highest since the war began. Thursday, we get fuel supply numbers for the United States. Gulf Oil's Tom Closa tells CNBC the numbers may not be so good. You know, we're probably going to lose another 8 to 10 million barrels of inventory in the U.S. on distillate, which is diesel and heating oil.

1:23And that would put us at about 94 million barrels. That's a panic number. Now, maybe we'll be lucky. Maybe we'll build a little bit in stocks, but it doesn't look like it. So if you're a farmer, you're a school, you're an ambulance or you're a vessel, you know, you're going to probably pay more for diesel in the next three weeks or so. Inflation hit its highest since last May in September. The CPI Consumer Price Index hit 3.7 percent. The Fed's target is down at 2%. Here's CNBC senior economics reporter Steve Liesman. Headlines 3.7, energy surging 9.3%. Bleeding into airline fares up 1.2%. Used cars also rising, hospital services.

2:08One surprising category I want to look at here, audio and video equipment up 3.6 % year over year. It had been deflating until the tariffs came along. And a take here from CNBC MedMoney host Jim Kramer. Housing going up as a percentage of your income because of mortgage, so therefore you stay in a rented apartment and then the rent goes up because of such demand. So that didn't work. Many of these are just so traceable to both tariff and right to the president. Look, if you want to mandate, I feel like telling you this is saying this today. If you want to mandate higher prices, you're going to have a hard time doing it better than this guy.

2:44People who want to buy a home will have to suffer with higher mortgage rates for a while. Into next year, CNBC's Diana Olick has the new rate forecast from Fannie Mae. Economists at Fannie Mae are now predicting much higher mortgage rates through the end of this year and into 2027. The October forecast now puts the average rate on the 30-year fixed at 7.4 % for the fourth quarter of this year and 7.5 % through all of next year. The average rate on a 30-year fixed home loan, according to Mortgage News Daily, on Wednesday, a little more than 7.5%. Netflix is slashing jobs. Here's CNBC's Carl Quintanilla.

3:25Netflix laying off 6 % of the staff, eliminating about 1 ,000 jobs. The cuts come after the stocks have been nearly cut in half over the last year and had failed in that bid for Warner Brothers Discovery. On Thursday's watch list, we get inflation numbers at the wholesale level, the PPI, the producer price index. Earnings are coming from Charles Schwab and Taiwan Semi. Southwest Airlines holds a media day showing off lounges for premium customers. Jessica Edinger, CNBC. This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Schwab Market Update, an original podcast from Charles Schwab, provides an information-packed daily market preview on stock updates, U.S.

4:07and global economic news, monetary policy decisions, and key results and statistics that may impact your trading. Download the latest episode and subscribe at schwab.com slash marketupdatepodcast, or find Schwab Market Update wherever you get your podcasts.