On today's episode of Catalysts, Hosts Seana Smith and Madison Mills report on some of the biggest stories impacting the trading day, from the latest Consumer Price Index (CPI) data to Hurricane Milton.

Major market indexes (^DJI, ^IXIC, ^GSPC) retreated on Thursday following the release of hotter-than-expected Consumer Price Index (CPI) data, which showed a 2.4% year-over-year increase in September. This comes as the current bull market approaches its second anniversary, raising questions about its sustainability. Yahoo Finance Markets Reporter Josh Schafer analyzes the potential risks that could impede the bull market's progression into its third year.

Max Kettner, HSBC chief multi-asset strategist, breaks down what the hotter-than-expected print means for the Federal Reserve's next interest rate cut. While inflation remains sticky, Kettner explains, "We've never really been in the camp that it's going to completely die." He argues that the market has been "exaggerating" around inflation, and that "people are freaking out a bit too much." Kettner adds that "supercore" inflation over the last three months has hovered around 4.5%, saying, "That should give the Fed a bit cause for concern that yes, they can continue cutting rates but not down to the sort of 2.5%, 3% level that the market was pricing in just a couple of weeks ago."

Nvidia (NVDA) shares have surged 20% over the past month, staging a robust recovery following a lackluster performance in August and September. T. Rowe Price Science & Technology Equity Strategy portfolio manager Tony Wang observes that the market has now come to terms with the "sustainability of the results." Given Nvidia's high valuation, concerns about maintaining this trajectory began to mount. However, with the upcoming launch of the Blackwell chip, Wang notes that "demand is quite strong," projecting improved growth for the semiconductor giant.

As Hurricane Milton barreled across Florida early Thursday morning, Generac (GNRC) CEO Aaron Jagdfeld tells Yahoo Finance, “We have been seeing obviously elevated demand and I think it's more the nature of the back-to-back-to-back [storms]. We had a very early storm barrel in early July, and then we had Helene a couple weeks ago. And now with Milton right on the heels of Helene, obviously, the demand grows with each event.” Jagdfeld explains that the company expects demand to continue to increase as extreme weather conditions worsen: “Obviously, you can't ignore the science. The air temperatures are getting warmer. The water temperatures are getting warmer. This is creating greater extremities of weather.”

As the third quarter earnings season approaches, Robinhood (HOOD) head of investment strategy Stephanie Guild discusses retail trading trends. Guild observes a clear pattern among Robinhood customers: "They trim their winnings and buy the stocks that have been dipping." She cites Tesla (TSLA) as an example, noting that investors who saw gains over the past month were selling to invest in temporarily underperforming stocks like Nvidia (NVDA). However, she emphasizes that in terms of risk appetite, individuals are "truly committed to these long-term positions," particularly in the Magnificent Seven tech stocks as these are companies "they know and use."

This post was written by Melanie Riehl