Key Notes
- The S&P 500 falls 0.38%, the Nasdaq loses 0.74% and the Dow drops 157.86 points at Tuesday’s close.
- October headline and core inflation exceed forecasts, sending the 10-year Treasury yield briefly above 5%.
- Nvidia falls more than 5% as investors weigh its board inquiry alongside renewed pressure from interest rates.
US stocks fell Tuesday as hotter-than-expected inflation revived concerns about higher interest rates, interrupting a sharp rebound from last week’s technology selloff.
The S&P 500 lost 0.38% to close at 7,520.93, while the Nasdaq Composite fell 0.74% to 25,065.87. The Dow Jones Industrial Average dropped 157.86 points, or 0.30%, to 52,231.89, according to CNBC.
Nvidia (Nasdaq: NVDA) fell more than 5%, weighing on the major indexes for a second session. The chipmaker had already missed Monday’s rally, when falling oil prices helped lift the S&P 500 to its strongest daily gain since April.
Inflation Slows but Still Exceeds Forecasts
The consumer price index rose 0.4% in October, down from September’s 0.6% increase but above the 0.3% forecast. Core prices, which exclude food and energy, increased 0.3% against expectations of 0.2%.
The core reading matched August and September, extending a run of persistent underlying price increases. Shelter rose 0.3% and accounted for more than 30% of the overall monthly gain; food prices increased 0.5%.
The October report did not provide annual headline or core rates because the 2025 government shutdown left the Bureau of Labor Statistics without the comparison data needed for those calculations.
Waller Raises the Stakes for December
Treasury yields climbed after the release. The 10-year yield briefly moved above 5% before slipping just below that level later in the session, increasing pressure on equity valuations.
In a London speech delivered before the inflation figures, Fed Governor Christopher Waller said he favored a quarter-point December increase even if the data improved. Another core CPI reading around 0.3% or higher, he said, would warrant considering a half-point move.
October’s result met the threshold he described. That puts a larger increase into the discussion ahead of the December meeting, although Waller was expressing his own position. A quarter-point move remained the main outcome priced into futures in an earlier FedWatch snapshot.
Nvidia Faces Pressure Beyond Interest Rates
Nvidia’s losses also reflect scrutiny of chief executive Jensen Huang. Independent directors have opened an inquiry into reports that he was targeted by a foreign intelligence effort. The board has expressed confidence in Huang and said it had no reason to believe company secrets or national security had been compromised.
On Tuesday, the directors said they had retained former acting US Attorney Joon H. Kim and Wachtell, Lipton, Rosen & Katz to conduct the investigation.
For the broader market, cheaper oil has yet to settle the inflation argument. Waller warned that earlier energy shocks could continue feeding into goods and services prices well into 2027. Tuesday’s rise in yields showed how quickly that concern can outweigh relief at the pump.
