Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Markets fell broadly on Tuesday , reversing a large chunk of Monday's more than 2% gains in the S & P 500 and Nasdaq . Volatility remains elevated, with stocks flipping from one day to the next. That's why we are hesitant to chase stocks higher or turn too negative after a big downdraft. What the market is struggling to sort out is the midterm election's impact on the data center buildout and the ongoing controversy at Nvidia . We downgraded our rating on the chipmaker to a 2 on Tuesday morning because there is too much uncertainty for us to buy shares, even after a 10% decline over the past two days. The 10-year Treasury yield surged back to 5% after the October consumer prices came in hotter than expected. The CPI rose 0.4% year over year, faster than the 0.3% that economists expected. Core CPI, which strips out volatile…
GE Vernova sellers have it all wrong — plus, why Fed rate hike odds are soaring
In short
U.S. markets tumbled as the October Consumer Price Index accelerated, driving yields higher and prompting traders to fully price in a quarter-point December rate hike, with a slight chance of a half-point move. Meanwhile, GE Vernova shares dropped approximately 6% after SoftBank took a $3.7 billion loss while realigning equipment advance slots for artificial intelligence data center developments. Despite this contract restructuring, SoftBank confirmed an Ohio natural gas turbine site remains on schedule. Market sentiment is also being tested by volatility tied to recent midterm election results and upcoming earnings from neocloud provider CoreWeave.
Key points
- GE Vernova maintained that SoftBank's contractual shifts will have no positive or negativ…: GE Vernova maintained that SoftBank's contractual shifts will have no positive or negative impact because its capacity is booked through 2029 or 2030.
- Hawkish Federal Reserve expectations gained momentum following comments from Governor Chr…: Hawkish Federal Reserve expectations gained momentum following comments from Governor Christopher Waller regarding stronger action against persistent inflation.
- Investors are looking toward upcoming results from CoreWeave to assess broader artificial…: Investors are looking toward upcoming results from CoreWeave to assess broader artificial intelligence computing demand and capital conditions.