Nvidia shock, shifting Fed bets and Europe's electric gamble: The financial week in five charts
SPY•Nvidia shares fell 11% this week and stood 30% below their October 6 high, while stronger-than-expected October inflation drove up interest-rate bets, Treasury borrowing costs and the dollar. Oil moved into surplus, and weak European hydropower and wind output contributed to higher German power prices.
1. Nvidia and markets
Nvidia shares fell 11% this week through Thursday's close, leaving them 30% below their October 6 high, while the S&P 500 was about 3% below its all-time high. The article links the selling to pressure on the AI trade and news about Nvidia CEO Jensen Huang.
2. Inflation and oil
US headline and core consumer prices rose more than expected in October, with price pressures across most categories. Interest-rate bets, Treasury borrowing costs and the dollar climbed as markets discussed a possible half-percentage-point Federal Reserve rate increase next month. The global crude oil market has been in surplus since October, reflecting increased Middle East exports, though uncertainty over Gulf flows remains high.
3. Europe's energy pressures
At the COP31 climate summit, delegates called for faster global electrification, while the EU's ambitions face economic and political pressures. Hydropower in the Danube basin remained far below normal seasonal levels, and reduced Nordic hydro generation and weaker wind output helped lift German power prices to their highest since 2022, increasing reliance on natural gas.
