Major U.S. equity indices edged lower on Thursday following a hotter-than-expected Consumer Price Index (CPI) inflation report for September and as oil prices spiked, driven by fuel disruptions caused by Hurricane Milton and rising tensions in the Middle East.

The S&P 500 slipped 0.2% from its record high set on Wednesday, while the Dow Jones Industrial Average and the tech-heavy Nasdaq 100 mirrored the decline. Small-cap stocks lagged, with the Russell 2000 dropping 0.9%.

Consumer prices rose 2.4% year-over-year in September, slightly down from August’s 2.5% rate but above the consensus estimate of 2.3%. Core inflation, which strips out the volatile energy and food categories, also came in higher than expected, ticking up from 3.2% to 3.3%.

Despite the inflation uptick, economists and investors remained broadly steadfast in their expectations of a 25-basis-point interest rate cut in November.

In a separate report, weekly unemployment claims surged to 258,000 for the week ending Oct. 5, exceeding forecasts. The spike was likely influenced by auto industry layoffs in Michigan and disruptions caused by Hurricane Helene.

Oil prices rebounded sharply after two days of losses, with West Texas Intermediate (WTI) crude climbing more than 3% to $75 per barrel. Natural gas prices also advanced over 2%.

Energy stocks outperformed the broader market as a result of the rally in oil prices.

Experts, cited by Reuters, indicated that power outages in Florida, the closure of several product terminals, delayed tanker truck deliveries, and pipeline disruptions would likely keep gasoline prices elevated.

In the Middle East, Israeli forces reportedly fired on UN peacekeeping bases in southern Lebanon, resulting in injuries to two soldiers, according to UN sources. This incident occurred amid ongoing hostilities between Israel and Hezbollah, a militant group based in Lebanon. The incident prompted a sharp response from Italian Defense Minister Guido Crosetto, who summoned Israeli diplomats for an explanation.

Treasury yields remained stable, while the U.S. dollar gained modestly. Gold and silver prices both rose, with gold advancing 0.5% and silver up 1.5%. Bitcoin BTC/USD softened 0.4% to $60,300.

Thursday’s Performance In Major US Indices, ETFs

According to Benzinga Pro data:

• The SPDR S&P 500 ETF Trust SPY fell 0.2% to $575.45.
• The SPDR Dow Jones Industrial Average DIA fell 0.4% to $423.47.
• The tech-heavy Invesco QQQ Trust Series QQQ inched 0.2% lower to $492.30.
• The iShares Russell 2000 ETF IWM tumbled 1% to $215.87.
• The Energy Select Sector SPDR Fund XLE outperformed, up 1%. The Real Estate Select Sector SPDR Fund XLRE lagged, down 1%.

Thursday’s Stock Movers

• Advanced Micro Devices Inc. AMD fell over 3%, reflecting some investor disappointment during its Advancing AI keynote.
• Celsius Holdings Inc. CELH surged 12%, building on a 6% gain from the previous session, as the energy drink stock gained momentum among retail investors. Increased social media chatter pointed to the stock bouncing off key support levels, further fueling the rally.
• Cloudflare, Inc. NET shares jumped 7% on Thursday following the company’s announcement of a new president of product and engineering.
• First Solar Inc. FSLR plunged nearly 10% after Jefferies analyst Dushyant Ailani reiterated a Buy rating but lowered the price target from $271 to $266. Peer Enphase Energy Inc. ENPH fell over 5%.

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Image created using artificial intelligence via Midjourney.