Dow Jones Top Markets Headlines at 3 AM ET: AI Jitters and Rate-Hike Fears Combine for Worst Day for Stocks Since July | U.K. ...

Stocks suffered their worst session since July as AI worries and rate-hike fears combined, after a hot inflation report reset expectations for an October increase. The roundup also pointed to uneven regional performance: the U.K. economy expanded again in August, while Asian economies face stress tests despite coping better than expected with war-driven energy disruptions. The Federal Reserve’s Beige Book said activity grew at a slight to moderate pace across most districts, with price pressures intensifying in some. Inflation in September rose to 3.7%, and discussion continued around the next I Bond rate, which is set to exceed 5%. Elsewhere, Canada’s building permits rebounded 8.8% in August, and two cargo ships sank near the Strait of Hormuz amid heightened Iranian attacks.