Markets in 5Wednesday, November 11
Hot inflation revives rate-hike fears as stocks slip
Hot October inflation data lifted Treasury yields and rate-hike bets, pushing the Dow, S&P 500 and Nasdaq lower on Tuesday and leaving the Fed debate open.
Stocks
Stocks slip as hot inflation revives rate-hike fears
The Dow Jones Industrial Average fell 0.30% to 52,231.89 on Tuesday, the S&P 500 lost 0.38% to 7,520.93 and the Nasdaq Composite dropped 0.74% to 25,065.87. The Russell 2000 fell 0.68% to 2,821.38. The S&P 500 remains about 4.1% below its record high, and the declines followed a hotter-than-expected inflation report that raised bets on a December Fed hike.
Rates
Ten-year Treasury yield rises to 4.98%
The 10-year Treasury yield closed Tuesday at 4.98%, up 10 basis points from 4.88% on Monday, according to the official Treasury par yield data. The 2-year yield rose to 4.73% and the 30-year to 5.35%, leaving the 2s10s spread at 25 basis points. Bond markets are closed on Wednesday for Veterans Day.
Economy
October consumer prices rise 0.4%, above forecasts
Consumer prices rose 0.4% in October, above the 0.3% forecast, after a 0.6% gain in September, according to CNBC. Core CPI, which excludes food and energy, rose 0.3%, also above expectations, with energy up 0.7% and food 0.5%. No annual rate was published because October 2025 data were never collected during the shutdown.
The Fed
Waller leans toward December rate hike
Fed Governor Waller said he is leaning toward a quarter-point increase in December and that a half-point move should be considered if October core CPI came in around 0.3% or higher, which it did. Dallas Fed's Logan said she sees a need for two additional quarter-point increases. Philadelphia Fed's Paulson said inflation pressures remain strong.
Sectors
Technology lags as Nvidia falls 5.4%
The S&P 500 technology sector fell 1.4% on Tuesday, the weakest of the 11 major sectors. Nvidia dropped 5.4%, its second straight session of losses and a 9.6% decline over two sessions. Nvidia has hired a former prosecutor to lead an independent investigation into whether its chief executive was the target of a China spy operation.