Wall St falls as hot inflation data fuels rate-hike jitters
SPY•Wall Street’s main indexes fell after hotter-than-expected October inflation data reinforced expectations of higher interest rates for longer. The Dow fell 0.49%, the S&P 500 0.61% and the Nasdaq 0.74%, while traders priced in an almost 99% chance of a December rate hike.
1. Indexes retreat
Wall Street’s main indexes fell on Tuesday, pausing a two-day rebound in technology shares after October inflation came in hotter than expected. At 9:47 a.m. ET, the Dow was down 0.49%, the S&P 500 0.61% and the Nasdaq 0.74%; nine of the 11 major S&P 500 sectors were lower. Traders priced in an almost 99% chance of a rate hike in December.
2. AI shares in focus
Nvidia shares fell 4.4%, and the broader semiconductor index declined 0.9%. The Information reported that Jensen Huang’s affair with Alice Huang, alleged to be a Chinese spy, facilitated shipments of at least $7.5 billion worth of Nvidia chips through Chinese firms. Anthropic said its expected IPO could raise as much as $64.4 billion and value the company at up to $1.4 trillion on a fully diluted basis.
3. Company moves
CoreWeave shares edged up 0.8% ahead of its expected quarterly earnings report after the market close, while peer Nebius fell 1%. Skydance dropped 9% after announcing cost-cutting plans and warning that the underperformance of Warner Bros’ film slate could reduce fourth-quarter profit by up to $200 million. Brent crude slipped below $90 a barrel for the first time since August.
