{"id":72961,"date":"2026-10-13T16:08:15","date_gmt":"2026-10-13T20:08:15","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-markets-slip-as-fed-signals-further-hikes-openai-terminates-employee-over-listening-device\/72961\/"},"modified":"2026-10-13T16:08:15","modified_gmt":"2026-10-13T20:08:15","slug":"us-markets-slip-as-fed-signals-further-hikes-openai-terminates-employee-over-listening-device","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-markets-slip-as-fed-signals-further-hikes-openai-terminates-employee-over-listening-device\/72961\/","title":{"rendered":"US Markets Slip as Fed Signals Further Hikes; OpenAI Terminates Employee Over Listening Device"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_86 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-markets-slip-as-fed-signals-further-hikes-openai-terminates-employee-over-listening-device\/72961\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-markets-slip-as-fed-signals-further-hikes-openai-terminates-employee-over-listening-device\/72961\/#Market_Overview_Wall_Street_Ends_in_the_Red\" >Market Overview: Wall Street Ends in the Red<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-markets-slip-as-fed-signals-further-hikes-openai-terminates-employee-over-listening-device\/72961\/#Feds_Collins_Signals_More_Tightening\" >Fed\u2019s Collins Signals More Tightening<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-markets-slip-as-fed-signals-further-hikes-openai-terminates-employee-over-listening-device\/72961\/#OpenAI_Security_Breach_and_Corporate_News\" >OpenAI Security Breach and Corporate News<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-markets-slip-as-fed-signals-further-hikes-openai-terminates-employee-over-listening-device\/72961\/#Global_Developments_and_Geopolitics\" >Global Developments and Geopolitics<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-markets-slip-as-fed-signals-further-hikes-openai-terminates-employee-over-listening-device\/72961\/#Health_Update_Pope_Leo\" >Health Update: Pope Leo<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>US Indices closed lower<\/strong> across the board on Tuesday, with the <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/dowjones\/today\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Industrial Average<\/strong> leading the decline, falling <strong>0.38% (196.24 points)<\/strong> to finish at <strong>51,654.31<\/strong>.<\/li>\n<li><strong>Federal Reserve official Susan Collins<\/strong> signaled that the central bank likely needs to <strong>raise interest rates &quot;a bit further&quot;<\/strong> by year-end to combat elevated inflation risks.<\/li>\n<li><strong>OpenAI terminated an employee<\/strong> after discovering a sophisticated recording device hidden in its offices, confirming the matter has been referred to the <strong>FBI<\/strong>.<\/li>\n<li><strong>Pope Leo underwent successful surgery<\/strong> to remove the lower lobe of his right lung after a diagnosis of <strong>lung adenocarcinoma<\/strong>, according to the Vatican.<\/li>\n<li><strong>Geopolitical tensions rose<\/strong> following reports of a bomb threat on a Delta flight in Israel and unconfirmed explosions in Kyiv, Ukraine.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Market_Overview_Wall_Street_Ends_in_the_Red\"><\/span>Market Overview: Wall Street Ends in the Red<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>US equity markets finished Tuesday\u2019s session with modest losses as investors weighed hawkish commentary from the Federal Reserve against a backdrop of geopolitical uncertainty. The <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a><\/strong> (<a href=\"\/stock\/SPY\">SPY<\/a>) edged down <strong>0.02%<\/strong> to close at <strong>7,805.67<\/strong>, while the <strong>Nasdaq Composite<\/strong> (<a href=\"\/stock\/QQQ\">QQQ<\/a>) shed <strong>0.17%<\/strong> to end at <strong>27,199.68<\/strong>.<\/p>\n<p>The <strong>Dow Jones Industrial Average<\/strong> (<a href=\"\/stock\/DIA\">DIA<\/a>) saw the steepest decline of the three major benchmarks, falling nearly <strong>200 points<\/strong>. Market sentiment was dampened by a combination of persistent inflation concerns and a cautious outlook for the &quot;new year&quot; policy path.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Feds_Collins_Signals_More_Tightening\"><\/span>Fed\u2019s Collins Signals More Tightening<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Federal Reserve Bank of Boston President <strong>Susan Collins<\/strong> provided a hawkish update, stating she expects the central bank to <strong>raise interest rates &quot;a bit further&quot;<\/strong> before the end of 2026. Collins, who supported the September hike, emphasized that the risk of high inflation remains &quot;elevated&quot; and is currently the Fed&#39;s primary focus.<\/p>\n<p>While she noted the job market is &quot;broadly balanced&quot; and the economy remains resilient, Collins warned that <strong>high energy prices<\/strong> and the massive <strong>data-center buildout<\/strong> are pressuring inflation readings. She expects inflation to stay above the 2% target in the near term, with future policy decisions remaining strictly data-dependent.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"OpenAI_Security_Breach_and_Corporate_News\"><\/span>OpenAI Security Breach and Corporate News<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>OpenAI<\/strong> made headlines after revealing it discovered a <strong>sophisticated recording device<\/strong> planted inside one of its offices. The company used its own AI models to analyze the device&#39;s origins, leading to the identification and <strong>termination of a specific employee<\/strong> who allegedly planted it.<\/p>\n<p>OpenAI stated there are currently no indications that model weights, source code, or customer data were exfiltrated during the incident. The company has officially referred the matter to the <strong>FBI<\/strong> for further investigation.<\/p>\n<p>In other corporate developments, <strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a><\/strong> (<a href=\"\/stock\/NVDA\">NVDA<\/a>) CEO <strong>Jensen Huang<\/strong> concluded a visit to Paris, meeting with President <strong>Emmanuel Macron<\/strong>. The discussions focused on <strong>NVIDIA\u2019s<\/strong> ongoing investments in France\u2019s AI ecosystem, open-source initiatives, and AI safety protocols.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Global_Developments_and_Geopolitics\"><\/span>Global Developments and Geopolitics<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Geopolitical risks flared as <strong>Israel&#39;s N12 News<\/strong> reported a bomb threat on a <strong>Delta Air Lines<\/strong> (<a href=\"\/stock\/DAL\">DAL<\/a>) flight that landed in Israel, causing passengers to disembark in a panic. Meanwhile, witnesses in <strong>Kyiv<\/strong> reported a series of explosions with no advance warning, adding to the volatility in global sentiment.<\/p>\n<p>In the energy sector, <strong>Phillips 66<\/strong> (<a href=\"\/stock\/PSX\">PSX<\/a>) faced operational hurdles as its <strong>355,000-bpd refinery<\/strong> in Roxana, Illinois, reported issues with its catalytic cracker unit. Additionally, <strong>Fletcher Building<\/strong> (<a href=\"\/stock\/FBU\">FBU<\/a>) reported that Q1 sales volumes were ahead of the prior year, though the company warned of an &quot;uncertain&quot; outlook due to interest rate volatility.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Health_Update_Pope_Leo\"><\/span>Health Update: Pope Leo<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Vatican confirmed that <strong>Pope Leo<\/strong> underwent a 90-minute surgical procedure on Tuesday to remove the lower lobe of his right lung. A medical bulletin revealed a diagnosis of <strong>lung adenocarcinoma<\/strong>, though the surgery was described as successful with no immediate complications.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways US Indices closed lower across the board on Tuesday, with the Dow Jones Industrial Average leading the decline, 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