Nasdaq ends sharply lower as hot inflation data stirs rate-hike worries

BREAKING: Nasdaq ends sharply lower as hotter-than-expected US inflation stirs fears of a Fed rate hike, with the AI trade splintering under rising borrowing costs.

The Nasdaq just got hammered, and inflation is the reason why.

A hotter than expected US inflation print landed today, and the market did not take it well. The index ended sharply lower as traders stopped pricing in rate cuts and started whispering about something far uglier, an actual Fed hike. You can see the mood at the exchange here.

And the pain wasn't spread evenly. The AI trade, the thing that's carried this entire market on its back, is splintering under rising borrowing costs. Those trillion dollar data centre buildouts are funded with debt, and debt just got more expensive. Suddenly every chip stock and cloud darling is being asked the same awkward question, what are you actually worth when money isn't free.

All eyes now turn to the Fed, because one hot number just put a rate hike back on the table. That's the fact nobody on Wall Street wanted to hear tonight.

This is Sara White, reporting for HIT.