U.S. indexes ended the session lower as the Nasdaq dropped 1.15%, the S&P 500 fell 0.64%, and the Dow declined 0.43%. Tech stocks suffered heavy losses, exacerbated by an over 5% decline in Nvidia shares amid an internal investigation involving CEO Jensen Huang. Meanwhile, the policy-sensitive two-year Treasury yield surged 19.1 basis points to reach 4.738%. Investors also tracked significant developments in artificial intelligence, including Anthropic's planned initial public offering and upcoming earnings from CoreWeave.
Key points
Markets have now fully priced in a Federal Reserve interest rate increase of at least 25…: Markets have now fully priced in a Federal Reserve interest rate increase of at least 25 basis points for December.
Federal Reserve Governor Christopher Waller indicated that the central bank might conside…: Federal Reserve Governor Christopher Waller indicated that the central bank might consider a half-point interest rate increase if price pressures worsen.
Artificial intelligence startup Anthropic is targeting an initial public offering that co…: Artificial intelligence startup Anthropic is targeting an initial public offering that could raise up to $64.4 billion at a $1.4 trillion valuation.
Sources checked by our analysis pipeline: 1
(Recasts with afternoon trading, adds analyst comment)
* Consumer Price Index rises 0.4% last month, above economists' 0.3% estimate
* Markets fully price in December Fed hike
* Anthropic IPO expected to raise as much as $64.4 billion
NEW YORK, Nov 10 (Reuters) - US stocks stumbled on Tuesday, as a hotter-than-expected inflation reading cemented expectations for a rate hike from the Federal Reserve next month and fueled concerns the central bank may be more aggressive in raising rates.
The Labor Department said the Consumer Price Index increased 0.4% last month, its third straight gain of 0.4% or more and above the 0.3% estimate of economists polled by Reuters, after advancing 0.6% in September.
The data came after Fed Governor Christopher Waller said the central bank should raise short-term borrowing costs in December even if data shows inflation cooled last month, and should consider an upsized half-point rate hike if the inflation picture worsens.
Markets are now completely pricing in a rate hike of…
Chicago futures jumped up to 3.7% as government forecasters reduced output expectations in major producing states like Illinois, Indiana, and Nebraska below analyst consensus. The sudden supply squeeze provides welcome financial margin for growers currently squeezed by high fertilizer and fuel expenses. Meanwhile, the adjustments also triggered temporary stock gains for agricultural equipment makers following repeated bouts of data-driven market turbulence.
Market participants are tracking a downward move in shares of the travel company during current trading. Definite catalysts and precise drivers behind the current selling pressure remain unspecified at this time. Investors and analysts continue to wait for further details to determine what is causing the retreat.
Investors are monitoring shifting trading patterns as shares in the travel company decline during the current session. Additional information regarding the primary catalysts behind the market movement is pending release. Stakeholders await further operational or financial updates to evaluate the broader implications for the travel sector.