Risk management, the Fed’s main rationale in September, points to another rate hike next week. Markets put the odds at one in five.

Economic data included both producer and consumer price inflation coming in stronger than expected, in keeping with a spike in gasoline and related petroleum pricing last month. Retail sales and existing home sales also saw gains, along with low jobless claims, all pointing to decent economic conditions.

Equities fell back globally with again rising oil prices and some concerns over AI profitability and financing weighing on buyer sentiment. Bonds fared well as yields came back down, despite reports showing continued high inflation. Commodities were mixed, with gains in energy due to geopolitics, offset by declines in metals and grains.