US stocks fall on hot inflation report as Nvidia tumbles again
Traders work on the floor of the New York Stock Exchange (NYSE) at the opening bell in New York City on Nov 10, 2026. (Photo: AFP/Angela Weiss)
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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.
Oil prices continued to retreat on hopes a US-Iran agreement may be closer, while artificial intelligence titan Anthropic disclosed plans to raise up to US$64 billion in its upcoming initial public offering, in a listing expected later this month.
Zidle also viewed a silver lining in the plan to hike interest rates in that the market welcomed the Fed’s stance as, ‘We are seeing a problem and we’re on top of it.’”
Fears of a slower AI data centre buildout sparked heavy selling across the tech sector last week, though buyers have stepped back in, with much of Wall Street opening higher Tuesday.
But the sector continued to be roiled by Nvidia’s bombshell revelation of an affair between CEO Jensen Huang and a woman reportedly suspected of being a Chinese spy. The AI chip behemoth is now the subject of an FBI investigation.
Nvidia shares fell a further 5.5 per cent after a 4.3 per cent drop Monday. The company slid below Microsoft in market valuation during the session, but ultimately ended back at the world’s second most valuable publicly traded equity after Apple.
ANTHROPIC IPO
The increased AI wariness has taken a toll on Anthropic’s IPO plans, after the maker of artificial intelligence chatbot Claude said it would seek less than the estimated US$100 billion floated just a few weeks ago.
The forecast came in a securities filing in which it revealed that revenue soared to US$17 billion in the third quarter, up from just US$1.4 billion a year earlier.
“The path is not clear for the AI trade, and it may continue to struggle” even if the Anthropic IPO is successful next week, said Kathleen Brooks, research director at the trading platform XTB.
European and Asian stock markets mostly rose.
International benchmark Brent crude oil prices fell below US$90 a barrel for the first time since August but finished at US$91.49 a barrel, down 1.2 per cent.
“President Trump signaling that further strikes on Iran may not be necessary – at a time when oil flows through the Strait of Hormuz are increasing and Middle Eastern exports recover towards pre-war levels – ease supply concerns,” said Axel Rudolph, chief technical analyst at online trading and investing platform IG.
Source: AFP/fs
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