Wall St falls as hot inflation data fuels rate-hike jitters
SPY•Wall Street’s main indexes fell Tuesday after October consumer prices rose 0.4% from the previous month, more than expected. The Dow lost 0.66%, the S&P 500 fell 0.84% and the Nasdaq dropped 1.25%.
1. Inflation lifts rate concerns
Wall Street’s main indexes retreated after hotter-than-expected October inflation reinforced fears that the Federal Reserve could keep interest rates higher for longer. The US two-year Treasury yield rose 21.4 basis points, its biggest one-day increase since April last year, while traders priced in an almost 99% chance of a December rate hike.
2. Technology shares lead losses
Technology stocks fell 1.8%, and the broader semiconductor index declined 1.9%. Nvidia shares slid 6.3% as investors weighed concerns about CEO Jensen Huang following the company’s internal probe into spy claims involving Alice Huang. The Information reported that their relationship facilitated the shipment of at least $7.5 billion worth of Nvidia chips through Chinese firms.
3. Anthropic IPO draws attention
Anthropic said its expected public listing later this month could raise as much as $64.4 billion, valuing the company at up to $1.4 trillion on a fully diluted basis. CoreWeave shares fell 2.1% ahead of its quarterly earnings report after market close, while peer Nebius fell more than 5%.
