US September CPI 3.7% vs 3.6% expectedCanada August building permits rise 8.8% vs 2.0% expectedFed's Beige Book: Nine of 12 districts report growth as price pressures broadenFed’s Goolsbee: CPI was discouraging, more bad months would be unacceptableMarkets:WTI crude oil up 98-cents to $95.12US 10-year yields down 2.3 bps to 5.19%Gold down $54 to $4103USD leads, GBP lagsS&P 500 down 1.2%The US CPI report threw gasoline on the debate about an October rate just as the Fed nears the blackout period. Market pricing now sits at 37% after briefly rising above 50% in the aftermath of the CPI report that was hot across the board. There were no big caveats in the data that was generally 0.1 pp above expectations. Comments from Goolsbee late in the day did seem to push back on the idea of a hike this month, saying "more bad months would be unacceptable" but it's been 5 years of CPI above target and you have to wonder how many bad months that is already. In any case, the Fed chair speaks late on Thursday and that's going to be a big one.In terms of market reaction, it was no surprise to see USD rally, stocks fall (it took awhile) and precious metals drop (silver down 6%). What was surprising was the bond market as Treasury yields initially shot much higher only to fade, then reverse later. US 2-year yields rose as high as 4.95% only to finish at 4.81%, suggesting that the market doesn't see a big FOMC repricing. Further out the curve, yields finished the day lower, suggesting the possibility of over-tightening.Of course, the CPI report didn't happen in a vacuum and the AI trade remains dominant throughout markets. Tech stocks got hit hard on fresh worries about overspending and profitability. Notably, it's the bond market that's pushing some of the worries as Oracle borrowing costs and CDS rise. Another report highlights that CoreWeave yields are nearing 15%, taking down the stocks of the neoclouds. This article was written by Adam Button at investinglive.com.