The tech-heavy Nasdaq slipped 0.7 percent as persistent inflation figures prompted policymakers, including Fed Governor Christopher Waller, to entertain a 50-basis-point rate increase in December. Technology shares faced significant headwinds as Nvidia tumbled 5.5 percent amid an ongoing federal inquiry regarding its chief executive. At the same time, Claude chatbot creator Anthropic lowered its initial public offering valuation target to US$64 billion, down from a previous estimate of US$100 billion. Meanwhile, international markets managed broad gains even as crude oil prices slid on hopes of an agreement between the US and Iran.
Key points
Stubborn inflation data is driving up market expectations for faster monetary tightening…: Stubborn inflation data is driving up market expectations for faster monetary tightening from Federal Reserve officials.
Mounting regulatory pressure and personal scrutiny surrounding Nvidia's leadership are co…: Mounting regulatory pressure and personal scrutiny surrounding Nvidia's leadership are compounding sharp losses across the broader technology sector.
Wary investors are beginning to recalibrate valuation expectations for leading artificial…: Wary investors are beginning to recalibrate valuation expectations for leading artificial intelligence firms amid broader market headwinds.
Sources checked by our analysis pipeline: 1
NEW YORK: Wall Street stocks retreated Tuesday (Nov 10), with scandal-hit Nvidia notably tumbling again, while the dollar gained after a hot US inflation report boosted expectations of Federal Reserve interest rate hikes.
After an up day on several Asian and European bourses, Wall Street indices were under pressure throughout the session following US data showing inflation slowed less than expected in October.
The report came hours after Fed Governor Christopher Waller called for a swift response to inflation, suggesting he could even support a 50-basis-point hike in December.
A second Fed official, Dallas Fed President Lorie Logan, also signalled strong support for swift action to address inflation.
"This is a recognition that inflationary pressures continue to accelerate and the Fed is going to have to be aggressive," said Joe Zidle, chief market strategist, Cresset Capital Management.
All three major indices ended lower, led by the tech-focused Nasdaq which lost 0.7 per cent.
Equity markets also digested some positive developments.
After an up day on several Asian and European bourses, Wall Street indices were under pressure throughout the session following…
Financial analysts at Bank of America have detailed the critical forces shaping the future trajectory of Indian equities. Their assessment evaluates the specific positive catalysts that could propel the benchmark index upward while measuring key vulnerabilities that threaten momentum. This dual perspective provides market participants with essential parameters for gauging the sustainability of the domestic equity market's prospective growth.
Precious metal markets are facing intensified pressure as unexpected consumer price increases prompt traders to price in guaranteed Federal Reserve policy tightening next month. Elevated borrowing costs diminish the appeal of non-yielding bullion by increasing the opportunity cost for institutional investors. Meanwhile, regional hubs like Singapore are actively maneuvering to expand their domestic gold infrastructure amid global market volatility.
Recent consumer price data highlighted escalating costs for shelter and groceries, prompting policymakers to signal that monetary tightening must continue. Markets reacted swiftly by virtually eliminating bets on an upcoming interest rate pause, which pushed benchmark bond yields sharply upward. This aggressive policy stance has simultaneously exerted broad pressure across speculative assets, including major cryptocurrencies.