Two weeks ago the Nasdaq was setting records. This week it fell 4.5%, its worst week since June, and the S&P 500 lost about 2%. The Dow, which holds fewer technology names, rose 0.7%. The trouble started in the bond market.
The spark. CoreWeave rents out Nvidia chips to AI companies and owes about $50 billion, borrowed to build its data centres. On 13 October investor Chamath Palihapitiya posted a chart showing the yield on one of its bonds briefly above 15%, a sign lenders were getting nervous. The next day CoreWeave's shares fell 15.5%. Oracle, which has also borrowed heavily for data centres, fell 8.8%, and Dell 11%.
The spread. Hotter US inflation the same day raised fears of higher rates, which make borrowed money dearer for everyone building AI. Chip and memory makers sold off: the iShares semiconductor fund fell about 8% from Monday to Thursday, and on Friday Micron, Western Digital and Sandisk dragged memory shares lower again while Meta fell nearly 4%.
The defence. CoreWeave's chief executive told staff that its order book, $104 billion in June and largely from Microsoft, Meta and OpenAI, more than covers its debts.
In short: this week's doubts were about how the AI build-out is paid for. A SimCorp strategist noted that when one theme passes about 40% of the market's weight, it has tended to mark a peak, and said the US is there now. It is a good week to check how much of a US portfolio sits in AI names. Companies are named for information, not as recommendations.
Sources: Yahoo Finance, 16 Oct 2026; ABC News (AP), 16 Oct 2026; SiliconANGLE, 14 Oct 2026; Forbes, 15 Oct 2026; CNBC, 14 Oct 2026. News for information only; not a recommendation to buy or sell.
US markets brief · Inflation & the Fed · 14 Oct 2026
US inflation hits 3.7%. Is another Fed hike coming?
The war-driven jump in fuel prices has reached the American shopping bill. US consumer prices rose 0.6% in September alone and 3.7% from a year earlier, up from 3.4% in August and above the 3.6% economists expected. Petrol rose 9.1% in the month and made up over half of the increase; energy prices are up 20.4% in a year.
Underneath. Leaving out food and energy, core inflation was a milder 2.6%, slightly above forecasts. Producer prices, what businesses pay, were up 6.3%, which suggests more cost pressure is still on its way to the shops.
The Fed. The Fed, now chaired by Kevin Warsh, raised rates in September to 3.75–4.00%. After Wednesday's report, the odds of another hike at the 27–28 October meeting jumped to as much as 45%, then fell back to about 17% by Friday. The odds of a hike by December stayed near 89%. Speaking on Friday, Warsh gave no signal either way.
Yields and the rupee. The 10-year Treasury yield touched 5.33% on Wednesday, then slipped to about 5.10% as investors sold technology shares and bought bonds for safety. The rupee firmed to about ₹94.96 to the dollar, from near ₹96 at the start of the month.
In short: US inflation is now largely an energy story, which is why the Strait of Hormuz matters for US shares as well as oil. For an Indian investor, a firmer rupee makes each new dollar slightly cheaper to buy, while dollar holdings are worth a little less in rupees.
Sources: US Bureau of Labor Statistics, CPI release, 14 Oct 2026; CBS News, 14 Oct 2026; FXStreet, 16 Oct 2026; Investing.com, 14 Oct 2026; Yahoo Finance (CME FedWatch), 16 Oct 2026; Goodreturns and HDFC Sky (USD/INR), 16–17 Oct 2026. News for information only; not a recommendation to buy or sell.
Last week we wrote that the bar for this results season was high. The big US banks, always first to report, mostly cleared it, helped by busy markets.
The winners. Goldman Sachs earned $17.01 a share, against about $13 expected. Its revenue from trading shares rose 72% from a year earlier to $6.4 billion, and fees for advising on deals rose 18% to $1.65 billion. Citigroup also beat forecasts, earning $2.85 a share against $2.65 expected.
The misses. JPMorgan, the largest US bank, earned $5.75 a share before one-off items, against $5.93 expected, a rare shortfall: bond trading came in about $550 million below estimates and costs grew faster than revenue. Wells Fargo and Bank of America both fell short of revenue forecasts.
The scorecard. With 9% of S&P 500 companies reported, FactSet says 84% have beaten profit estimates, above the five-year average of 78%, though by smaller margins than usual. Expected profit growth for the quarter is 29.0%, and the index trades at 19 times the next 12 months' earnings. Another 79 S&P 500 companies report next week.
In short: busy markets have been good for bank trading desks. With US yields above 5%, the next thing to watch is what banks say about borrowers and loan losses. Companies are named for information, not as recommendations.
Sources: Goldman Sachs Q3 2026 results (SEC Form 8-K), 13 Oct 2026; Investing.com, 13 Oct 2026; CNBC, 13–14 Oct 2026; FactSet Earnings Season Update, 16 Oct 2026. News for information only; not a recommendation to buy or sell.
Yes. Any Indian resident over 18 with PAN and Aadhaar can open a US account on Motilal Oswal's RIISE app, fully paperless, and add a nominee. You can buy US stocks, ETFs and US mutual funds.
How much can I invest?
From $1 (or ₹1,000 sent at a time) up to $250,000 a financial year, the RBI's Liberalised Remittance Scheme (LRS) limit per person.
Who holds my shares?
DriveWealth LLC, Motilal Oswal's US broker partner: a self-clearing broker, FINRA member, registered in all 50 states. SIPC covers up to $500,000, including $250,000 cash, if the broker fails.
What does it cost?
Brokerage is 0.5% of the trade or $1, whichever is higher. There is no charge to withdraw money to your Indian bank. Your bank's currency conversion applies.
Can I trade intraday or F&O?
No. RBI rules let Indian residents only buy and hold under LRS: no intraday, margin, short-selling, futures or options.
How do I add money?
Convert rupees to dollars inside the RIISE app. Axis, HDFC and ICICI Bank customers verify their bank and transfer; Federal Bank customers add money by UPI.
Why isn't money credited instantly?
Rupees are converted to dollars and sent abroad by SWIFT after your bank's LRS checks, so it takes 8–48 hours. If you have banked there under a year, it may ask for a one-year statement or your ITR acknowledgement.
How do I get my money back?
Sell, then ask for a withdrawal. The dollars come back by SWIFT; your bank checks and converts them to rupees. Trades settle on T+1.
When is the US market open in India?
9:30 am to 4:00 pm New York time: 7:00 pm to 1:30 am IST from March to November, and 8:00 pm to 2:30 am IST from November to March.
How are US stocks taxed in India?
Held over 24 months, gains are taxed at 12.5%; sooner, at your slab rate. Dividends are taxed at your slab rate, with credit for the 25% US tax withheld. Declare holdings in Schedule FA of your return.
What are the risks?
Prices move, and so does the rupee-dollar rate. Company news, US interest rates, inflation, regulation and politics all play a part. Above ₹10 lakh a year, banks also collect 20% TCS, which you claim back in your return.
