JBizNews U.S. Market Opening Report | Thursday, October 15, 2026 | 10:00 AM ET

NEW YORK — Wall Street opened sharply divided Thursday as another inflation shock deepened the selloff in artificial intelligence and semiconductor stocks, sending the Nasdaq Composite down nearly 330 points while the Dow Jones Industrial Average advanced.

The latest economic reports showed wholesale prices rising at their fastest monthly pace in more than four years, retail sales increasing largely because of higher gasoline costs, and unemployment claims remaining historically low.

Investors are confronting a difficult combination: rising inflation, increasingly expensive corporate financing and questions about whether the enormous investment in artificial intelligence can produce sufficient returns.

The technology selloff intensified despite strong quarterly earnings from Taiwan Semiconductor Manufacturing Co., suggesting investor concerns are extending beyond corporate profitability to the cost of financing future growth. 

U.S. Market Opening Numbers — 9:30 AM ET

Index

Opening Level

Point Change

Percentage

Dow Jones Industrial Average

51,888.22

+266.74

+0.52%

S&P 500

7,685.59

−33.35

−0.43%

Nasdaq Composite

26,363.01

−329.86

−1.24%

The figures reflect Reuters’ reported 9:30 a.m. market readings, rather than later intraday prices.

Technology stocks continued to lead the decline, while the Dow benefited from investors shifting toward companies with less exposure to the artificial intelligence investment boom. 

Morning Economic Reports: Inflation Jumps, Retail Sales Rise and Manufacturing Expands

Thursday brought six economic reports covering inflation, consumer spending, employment, manufacturing and business inventories.

Producer Price Index — Inflation Accelerates

The Labor Department reported that September producer prices increased 1.3% from August and 6.3% from a year earlier.

The monthly increase was the largest since March 2022 and substantially exceeded economists’ expectations of approximately 0.5%.

Energy costs were the biggest contributor. Wholesale energy prices jumped 10.8%, including a 20.3% increase in gasoline prices.

Services prices also increased 0.8%, indicating that inflationary pressure extended beyond fuel.

Even after excluding food, energy and trade services, producer prices rose 0.5% for the month.

For businesses, the report signals rising costs for transportation, manufacturing, distribution and other operations. 

Retail Sales — Consumers Spend More, but Gasoline Drives Much of the Increase

The Commerce Department reported September retail sales increased 0.8%, exceeding expectations for approximately 0.3% growth.

August’s increase was revised to 1.3%.

However, the headline figure masked weaker underlying activity. Sales excluding gasoline increased just 0.2%, suggesting that higher fuel costs accounted for a significant portion of the spending increase.

The distinction matters for retailers heading into the holiday shopping season. Consumers spending more on gasoline may have less available for discretionary purchases. 

Weekly Unemployment Claims — Layoffs Remain Low

Initial unemployment claims increased by 1,000 to 199,000 for the week ended October 10, slightly below economists’ forecasts of 200,000.

Continuing claims declined by 4,000 to approximately 1.71 million.

The report suggests employers remain reluctant to lay off workers, even as hiring activity slows.

That leaves the Federal Reserve confronting persistent inflation without a significant deterioration in employment. 

New York Manufacturing — Strongest Reading in Nearly Five Years

The Federal Reserve Bank of New York reported its Empire State Manufacturing Index jumped to 25.5 in October from 7.6 in September.

The increase marked the strongest reading since December 2021.

New orders and shipments improved substantially, although manufacturers continued reporting elevated costs and worsening supply availability.

The results suggest industrial activity remains resilient despite higher borrowing and operating costs. 

Philadelphia Manufacturing — Growth Continues at a Slower Pace

The Philadelphia Federal Reserve reported its manufacturing activity index declined to 20.9 in October from 37.8 in September.

Although activity continued expanding, the decline indicated slower growth.

New orders weakened considerably, while manufacturers reported continued increases in selling prices.

The differing New York and Philadelphia results suggest regional manufacturing conditions remain uneven. 

Business Inventories — Stockpiles Increase

The Commerce Department’s 10 a.m. report showed August business inventories increasing 0.4% to approximately $2.82 trillion.

Combined manufacturing and trade sales increased 1.1%, bringing the inventory-to-sales ratio to 1.33 from 1.34 in July.

The figures suggest businesses were generally selling merchandise faster than inventories accumulated, an encouraging indication for demand despite higher operating costs. 

Nvidia, AMD, Micron and CoreWeave Lead Technology Weakness

Artificial intelligence and semiconductor stocks remained under pressure following Wednesday’s steep technology selloff.

Before the opening bell, Nvidia declined approximately 1.3%, Advanced Micro Devices fell 1.9% and Micron Technology dropped about 4%.

CoreWeave lost another 4.5% in premarket trading following Wednesday’s approximately 15% decline.

The cloud infrastructure company has become a focus of investor concerns about the debt required to construct and operate massive artificial intelligence data centers.

Investors are increasingly examining whether the anticipated revenue from AI infrastructure can justify the borrowing costs and capital expenditures required to build it.

The weakness extended internationally. South Korea’s benchmark Kospi index fell nearly 8%, while Japan’s Nikkei declined approximately 5%. 

TSMC Reports Record Profit, but Shares Decline

Taiwan Semiconductor Manufacturing Co., the world’s largest contract chipmaker, reported third-quarter net profit of approximately $23.6 billion, up 69% from a year earlier.

The company exceeded analysts’ expectations and projected fourth-quarter revenue between $52.3 billion and $54.3 billion.

TSMC also raised its expected full-year revenue growth to approximately 44%.

Despite those results, its U.S.-listed shares declined approximately 2% before the opening bell.

The contrasting developments highlight the market’s current dilemma: Demand for advanced semiconductor manufacturing remains substantial, but investors are increasingly questioning whether the industry’s growth expectations are sustainable at current valuations.

TSMC also warned that higher component prices and economic uncertainty could affect price-sensitive consumer markets heading into 2027. 

Charles Schwab Beats Earnings Expectations but Shares Fall

Charles Schwab reported adjusted third-quarter earnings of $1.69 per share, exceeding analysts’ expectations of $1.65.

Revenue reached approximately $7.2 billion, supported by higher client activity and expanding investment balances.

The brokerage attracted approximately $190.4 billion in core net new assets during the quarter.

Despite those results, shares declined approximately 2.4% in premarket trading.

The weakness reflects broader caution toward financial companies as investors assess interest-rate uncertainty and the outlook for market activity. 

What to Watch for the Rest of Thursday

Federal Reserve Policy and Treasury Yields

Investors will monitor remarks from Federal Reserve Chair Kevin Warsh, scheduled for 11:30 a.m. ET.

Markets are assessing whether September’s sharp increases in consumer and producer prices will prompt another interest-rate increase.

Energy Reports

The Energy Information Administration is scheduled to release weekly natural gas storage figures at 10:30 a.m. ET and petroleum inventory figures at noon.

Oil and gasoline supplies remain particularly important as the conflict involving Iran continues affecting energy markets and transportation costs.

Technology and AI Stocks

Investors will watch whether Nvidia, AMD, Micron and CoreWeave stabilize after the opening selloff.

Further declines could increase pressure on the broader market, particularly if selling spreads beyond semiconductor and cloud infrastructure companies.

Corporate Earnings

BNY, PNC Financial Services, U.S. Bancorp and Charles Schwab are among Thursday’s major financial-sector earnings reports.

J.B. Hunt Transport Services is scheduled to report after the closing bell, providing another indication of freight demand and transportation costs.

Friday’s Economic Reports

Friday brings September industrial production and capacity utilization at 9:15 a.m. ET, offering another measure of manufacturing activity and the strength of the U.S. economy. 

The Bottom Line

Thursday’s market opening exposes two growing challenges for American businesses.

The first is inflation. Rising fuel, transportation and wholesale costs are increasing the price of doing business while reducing consumer purchasing power.

The second is the increasingly expensive financing behind the artificial intelligence investment boom.

Strong earnings alone are no longer sufficient to reassure investors that every AI-related company can justify its valuation or borrowing requirements.

The Dow’s advance and Nasdaq’s sharp decline reflect a market beginning to distinguish between established businesses generating profits and companies whose valuations depend heavily on future growth.

With wholesale inflation now running at 6.3% annually, borrowing costs remain a central risk for businesses, consumers and investors.

The remainder of Thursday’s session will test whether investors continue reducing exposure to technology or whether the sector can stabilize following its latest losses.

JBizNews Desk | Wall Street

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