Wall Street and ASX slump as US inflation rises to 3.7 per cent

Global markets are facing downward pressure following reports that US inflation accelerated to 3.7 per cent last month, exceeding the 3.6 per cent expected by economists. This rise from the 3.4 per cent rate recorded in August has impacted major indices, with the S&P 500 dropping 1.1 per cent and the Nasdaq composite falling 1.6 per cent.

In response to the inflation data, the probability of the Federal Reserve raising the federal funds rate at its next meeting has increased to 39 per cent, up from 22 per cent previously. The bond market has also seen significant movement, with the 10-year Treasury yield rising to 5.23 per cent.

In Australia, the ASX is expected to decline following a 0.6 per cent loss on Wednesday. Additionally, rising fuel prices linked to the war with Iran have contributed to market volatility, pushing Brent crude prices to $US106.71 per barrel.