Markets began pricing an outside chance of a 50-basis-point Fed rate hike in December after core monthly inflation reached 0.3% and Fed officials voiced hawkish views. Two-year Treasury yields rose by as much as 20 basis points, while stocks fell.
Fed Governor Christopher Waller said a 50-basis-point rate hike should be considered next month if core monthly inflation was again 0.3% or higher; the inflation report later showed that level. Dallas Fed chief Lorie Logan also delivered a hawkish message, and markets priced an outside chance of a half-point December hike or two consecutive increases in December and January. Two-year Treasury yields surged by as much as 20 basis points, and stocks tumbled.
Nvidia lost almost 10%, or about $430 billion in market value, this week as reports and probes concerning CEO Jensen Huang widened. Nvidia said its board had no reason to believe US national security or company secrets were compromised, and Huang committed to cooperating with an internal review. Anthropic began its IPO roadshow, indicating it would sell almost $90 billion in new shares at a $1.4 trillion valuation. CoreWeave shares rose about 8% after an earnings beat and forecasts.
Loans in some form of trouble reached 5% of total US household debt in the third quarter, up 0.3 percentage points from the second quarter, the Federal Reserve Bank of New York said.
