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US consumer prices climbed 0.6% in September from the previous month and 3.7% from a year earlier, with the annual figure exceeding forecasts. It marked the highest monthly reading in five months and the strongest annual gain in four. The report sharpened expectations that the Federal Reserve could raise interest rates again, adding to selling pressure across global markets after a slide in technology shares.

Gasoline costs jumped 9.1% on a monthly basis, accounting for more than half of the overall increase. Core inflation, which strips out volatile energy and food prices, rose 0.3% monthly and 2.6% annually, also above projections. Richmond Fed President Tom Barkin said the data came in higher than he had expected, while Chicago Fed President Austan Goolsbee called the figures "discouraging" and flagged services inflation as a concern. The Fed's Beige Book pointed to persistent price pressures. Money markets lifted the odds of an October rate increase to 73% from 22%.

Wall Street closed lower, with the Nasdaq shedding 1.88% and the S&P 500 falling 1.11%, while Asian technology shares led sharp declines that pushed the Kospi down about 7%. European bourses mostly rose on upbeat earnings. The 10-year Treasury yield dropped nine basis points to 5.11%, the dollar index eased to 102.1, Brent crude fell 1.7% to $104.3, and gold traded near $4,145 an ounce.

In Istanbul, the BIST 100 lost 1.08% to close at 12,118.29, and the lira stood at 49.41 per dollar. Investors were awaiting US retail sales, producer prices, jobless claims and euro area industrial output data.

Key Takeaways

• US September CPI rose 3.7% year on year and 0.6% monthly, above expectations
• Market odds of an October Fed rate hike jumped to 73% from 22%
• Nasdaq fell 1.88%; Asian tech shares slid sharply, with Kospi down about 7%