Stock Market Today: CRWV & DELL Plunge, BAC Takes $1.2B Earnings Hit

Sam Vadas (0:00)

Welcome to The Wrap. I'm Sam Vadas. Here to take you through today's market action. Stocks sold off on Wednesday after the September CPI showed a 3.7% increase in the last year. The NASDAQ 100 and Russell 2000 each fell about 2% with the small caps entering correction territory. The S&P 500 dropped 1% while the Dow fell less than a tenth of a percent. Probabilities for an October rate hike went from roughly 20% to about 50% this morning. 8 of the 11 S&P 500 sectors closed lower. Technology falling nearly 3%, communications almost 2%, while health care and consumer staples gained over 2% to help limit some of that damage. Shares of CoreWeave plunged 15% on Wednesday with the company's bonds falling to distressed levels with its unsecured debt due in 2032 trading below 80 cents on the dollar.

CoreWeave CEO Mike Intrader said, The market is acting irrationally. The stock has fallen 54% from its 52-week high.

Dell Technologies had its worst day in over a year after Barclays downgraded Dell HP and NetApp to equal weight from overweight. The analyst cut his Dell price target to $574 from 603, saying that he was taking a more cautious approach on tech hardware stocks due to skyrocketing valuations. Dell fell over 11% in the session.

Bank of America dropped almost 5% after the company missed earnings estimates on the top and bottom lines. The bank was also fined more than $1.2 billion by the Treasury Department. The penalty was for violations of anti-money laundering and sanctions laws and is the third largest in Treasury history.

Here's what to watch for tomorrow. PPI, retail sales, the Philly Fed index and weekly jobless claims are out at 8:30 a.m. Eastern. Taiwan Semi will release its earnings report overnight. That will do it for the wrap. I'm Sam Vadas. Remember to tune in 24-7 to schwabnetwork.com and subscribe to our YouTube channel.