Wednesday - October 14, 2026
Show notes
On October 14, Dividend Cafe recapped a down market day with the Dow nearly flat, the S&P down over 1%, and the Nasdaq down about 1.9% as tech and semis led declines. Markets reacted to September CPI, with headline inflation up 0.6% (in line) but core CPI up 0.3% versus 0.2% expected and year-over-year core at 2.6% versus 2.5%, with broader components like airfares, transportation, and shelter costs rising. Rates rose then fell as stress prompted some flight-to-safety dynamics, and the yield curve continued flattening. The episode discussed a “mini” rate-hike cycle (around three hikes) and emerging cracks such as stressed neocloud bonds, bank loan value pressure, and widening CCC high-yield spreads. It also explained foreign withholding taxes in U.S.-listed European dividend ETFs and how foreign tax credits are claimed via year-end tax reporting.
00:00 Market Wrap and Rates
01:19 CPI Report Breakdown
02:07 Shelter Costs and Inflation Path
03:20 Mini Rate Hike Cycle
03:46 Cracks From Rising Rates
04:45 International Dividend Taxation
06:09 Closing Thoughts
Links mentioned in this episode: DividendCafe.com