CNBC Business News Update - Market Midday: Stocks Lower, Economy & AI Warning, Mortgage Rate Forecast • 10/14/26

Episode Date: October 14, 2026

CNBC Business News Update with Jessica Ettinger - Markets & Business News With Expert Analysis From Top Business Names. Visit CNBC.com For More. Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com for information about our collection and use of personal data for advertising.

CNBC Business News Update. I'm Jessica Ettinger. Major averages all lower this afternoon. Inflation rose last month. Bond yields have retreated a little from the morning pop. The yield on the 10-year note back around 5.5% this afternoon, but stocks are down. The Dow is down 142 points. Now Caterpillar shares leading it lower. They're down 3%. The S&P 500 index down 80 points. That's a full 1% today. The NASDAQ down 400. 28 points. That's 1.5% chipmaker shares are sinking. Companies who shares hit fresh all-time highs today include oil names. Chevron, Exxon, Marathon Petroleum, Conoco Phillips, Vallero, and Phillips 66. Oil has been moving higher today. A container ship sank in the Strait of Hormuz. Iran has been stepping up attacks on ships. A warning about the economy and AI from BlackRock CEO Larry Finkler.

on CNBC. There's a lot of rumors and fear about data centers. Most of it is on this information. Most of it is wrong, you know, whether it's use of water. You know, golf courses use more water than the data center. I can go on at all the different things. Wingfoot. But if we have a moratorium of some sort in this country, we will be in a recession. So much of our economy, as you said, David, is based on the build out of this cap act. Inflation hit its highest since last May last month. The CPI Consumer Price Index at 3.7% for September. The Fed's target is 2%.

The inflation rate back before the pandemic in 2019 was 1.8%. Here's CNBC Senior Economics Reporter Steve Leesman. Hot CPI. Here's the data coming in where we thought it was going to be on the headlines. 3.7, bottom line going the wrong way. How did we get there? Energy surging 9.3%. Bleeding into airline fares up 1.2%. Use cars, though, also rising hospital services, shelter a big part of the reason why the core went up in the month of September. One surprising category I want to look at here. Audio and video equipment up 3.6% year over year. It had been deflating until the tariffs came along. And here's a take from Mad Money host, Jim Kramer.

Housing going up as a percentage of your income because of mortgage, so therefore you stay in a rent, rent a apartment, and then the rent goes up because there's such demand. So that didn't work. Many of these are just so traceable, too, both tariff and right to the president. Look, if you want to mandate, I feel like telling you to say it today. If you want to mandate higher prices, you don't have a hard time doing it better than this guy. would-be homebuyers facing mortgage rates in the 7.5% range into next year. It's a sharp increase in a forecast. CNBC's Diana Oleg has more on Fannie Mae's outlook. Economists at Fannie Mae are now predicting much higher mortgage rates through the end of this year and into 2027.

The October forecast now puts the average rate on the 30-year fixed at 7.4% for the fourth quarter of this year and 7.5% through all of next year. Now, the average rate on the 30-year fixed will likely move higher bond yields are rising after that hotter than expected inflation report. The average rate today on a 30-year fixed home loan ticked higher to 7.56 percent, according to Mortgage News Daily. Jessica Ettinger, CNBC. From gas prices to housing prices, from government spending to consumer spending, from the AI boom to the data center backlash.

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