US market ends lower as hot inflation data, Fed comments heighten rate worries: Stock Market Live Updates
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Business News›Markets›US Stocks›Wall St Guide›Microsoft overtakes Nvidia in m-cap for first time since June '25, Nasdaq drops over 1%: Stock Market Live Updates
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Dow Jones | Nasdaq | Stock Market Live: Wall Street’s main indexes trade lower on Tuesday as hotter-than-expected October inflation data threatens to halt a two-day rebound in technology shares and revive last week’s selling pressure.
Wall Street trades lower, with the Dow falling 261.42 points, or 0.50%, to 52,128.33. The S&P 500 slips 29.35 points, or 0.39%, to 7,520.59, while the Nasdaq Composite declines 73.08 points, or 0.29%, to 25,180.06.
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Crude oil slipped to its lowest level since late August, extending Monday’s 4.4% decline, as investors priced in a possible diplomatic resolution to the Middle East conflict. US President Donald Trump indicated that further strikes on Iran might not be necessary while keeping the option of military action open.
Nvidia shares fell more than 6%, pushing the AI chipmaker below Microsoft and stripping it of its position as the world’s second-most valuable company by market capitalisation.
The US central bank needs to deliver at least two more quarter-percentage-point interest rate increases to bring down inflation, and may need to do so promptly to keep broadening price pressures from getting baked into the economy, Dallas Federal Reserve President Lorie Logan said on Tuesday.
"It remains clear to me, given the current outlook, that the FOMC (Federal Open Market Committee) needs to implement at least two more 25-basis-point rate increases," Logan said in remarks prepared for delivery to an energy conference sponsored by the Dallas and Kansas City Fed banks. "Excess inflation is unacceptable."
Microsoft's market cap was over $4.03 trillion while Nvidia's market cap slid to around $4.02 trillion.
Boeing said on Tuesday it delivered 49 jets in October, down from 57 the previous month and 53 a year earlier.
However, Boeing had its strongest October for orders minus cancellations since 1997, booking 165 new orders with no cancellations. Most of those came from lessor Avolon's order for 140 737 MAX jets.
Boeing delivered 32 737 MAX jets in October, down from 43 in September, with CEO Kelly Ortberg saying last month that it would miss its 737 delivery target of about 500 jets this year.
The overall level of troubled borrowing in the US economy rose in the third quarter but did not appear to signal a notable deterioration for overall credit quality, a report from the Federal Reserve Bank of New York said Tuesday.
Loans that were in some form of trouble stood at 5% during the third quarter, up 0.3% percentage point from the second quarter, the bank said in its latest Quarterly Report on Household Debt and Credit.
Despite the rise, the overall level of trouble was consistent with conditions seen before the COVID-19 pandemic struck and was well below the woes seen during the financial crisis nearly 20 years ago.
Deutsche Bank on Tuesday said it expects an additional 25-basis-point interest rate hike from the US Federal Reserve in January 2027, after a hotter-than-expected October inflation reading reinforced fears that the Fed could keep interest rates higher for longer.
"This morning's CPI data continued to show broad-based gains, reinforcing our concerns from earlier this year about the persistence of price pressures," Deutsche Bank said in a note.
The brokerage previously expected the central bank to raise rates in December and March.
The dollar strengthened against major currencies on Tuesday after hotter-than-expected US inflation data bolstered expectations that the Federal Reserve would raise borrowing costs next month.
Data from the US Labor Department showed that the Consumer Price Index increased 0.4% last month, exceeding the consensus forecast of a 0.3% gain in a Reuters poll of economists.
The dollar extended its gains against a basket of currencies after the report while the yield on the 2-year note, which typically moves in step with Fed rate expectations, jumped and was last up 19.07 basis points to 4.738%.
The euro was down 0.48% against the dollar at $1.117. The dollar gained 0.47% to 158.66 against the Japanese yen . Against the Swiss franc, the dollar rose 0.89% to 0.8251 franc.
The artificial intelligence trade may be entering a more demanding phase, and investors who have so far benefited from buying almost anything associated with AI may need to rethink their strategy, according to experts. (Read)
Wall Street traders raised the odds of a .50% (or 50 bps) rate hike the US Federal Reserve on Tuesday after October inflation rose higher than expected, including a mark set by a key Fed official for considering faster rate hikes.
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Mercor said on Tuesday it had raised $750 million in a funding round that valued the AI training startup at $20 billion. The Series D round drew participation from Benchmark, Felicis, Fundomo, Nvidia and funds managed by affiliates of Apollo, among others.
Amazon and Google's stakes in Anthropic could be worth a combined $411 billion if the AI company prices its initial public offering at the top of its proposed range, according to Reuters calculations based on a filing. The figures show how much early bets by the two cloud giants have grown. They have put money into Anthropic while also selling it the computing power it needs to build its AI models.
Anthropic is targeting a fully diluted valuation of up to $1.4 trillion in its proposed initial public offering (IPO), setting the stage for one of the largest stock market listings as the artificial intelligence company prepares to tap public investors. The Claude maker has launched its IPO roadshow, offering 825 million shares in a price band of $70-78 apiece. The company is seeking to raise up to $64.35 billion through the public offering, according to its regulatory filing with the US Securi ..
Read more: All you need to know
Nvidia shares fell more than 4%, extending Monday's decline. The chipmaker is investigating after CEO Jensen Huang acknowledged an intimate relationship with a business executive whom The New York Times reported that US intelligence assessed as gathering information for China.
Microsoft has been pressing the Trump administration to halt plans to bar Chinese imports of a key component used in AI data centers, three people familiar with the situation said.
Reuters reported in August that the Trump administration wants to ban US imports of new models of Chinese optical transceivers, which allow data to travel over fiber-optic cables at the speed of light within data centers. The concern is that they could be used by Beijing to steal data, install malware or disrupt service at US data centers.
The Dow Jones Industrial Average fell 226.5 points, or 0.43%, at the open to 52,163.21. The S&P 500 fell 36.8 points, or 0.49%, at the open to 7,513.09, while the Nasdaq Composite dropped 205.7 points, or 0.81%, to 25,047.448.
US natural gas futures held near a three-week high on Tuesday on forecasts for cooler weather and more demand in late November, record gas flows to liquefied natural gas export plants and a drop in output in recent weeks. Front-month gas futures for December delivery on the New York Mercantile Exchange rose 0.6 cents to $3.224 per million British thermal units, putting the contract on track for its highest close since October 15 for a second day in a row.
Bets on a 50-basis point rate hike by the Federal Reserve in December started to build on Tuesday on the heels of a hotter-than-expected reading of inflation and comments by a key Fed official saying he would support more aggressive action in the event of a too-hot Consumer Price Index report.
With a 25-basis point hike now fully priced in, the probability of a 50-basis point hike next month stood at around 10%, according to CME FedWatch.
TSMC plans to invest up to $1 billion across leading AI developers Anthropic and OpenAI, highlighting the Taiwanese chipmaker's confidence in long-term demand for the technology even as concerns grow about soaring AI spending.
US Secretary of State Marco Rubio on Tuesday said that he told G7 allies that US economic sanctions and naval blockade are working "so well" that President Donald Trump does not have any need to conduct major combat operations in Iran.
Speaking to reporters in Paris, Rubio said the economic pain Washington has inflicted gets worse in time but that US was still open for a "real deal" to be done, but the conditions Tehran continued to place were "absurd".
German defence firm Helsing will present new artificial intelligence-based military targeting software on Wednesday, seeking to benefit from growing concerns among European governments about relying on US companies such as Palantir.
After President Donald Trump's repeated threats to quit NATO, concerns over dependence on Washington and data sovereignty have fuelled resistance against US data analytics and defence software firm Palantir in parts of Europe.
President Donald Trump said the FBI is looking into Nvidia Corp. Chief Executive Officer Jensen Huang’s extramarital relationship with a suspected Chinese spy, and offered his support to the embattled chip magnate a day after the affair was disclosed.
Despite the allegations, Trump said Monday that he spoke to Huang earlier in the day to ask how he was doing, and praised Huang as a “very honorable man.”
US Treasury yields jumped on Tuesday after data showed that US consumer prices rose more than economists expected in October, leading traders to bolster bets on a larger interest rate hike at the Federal Reserve’s December 8-9 meeting.
The Consumer Price Index rose 0.4% last month after advancing 0.6% in September, while core prices, which exclude the volatile food and energy components, increased 0.3% last month, matching September's gain.
US consumer prices increased more than expected in October, leaving the Federal Reserve on course to raise interest rates next month.
The Consumer Price Index rose 0.4% last month after advancing 0.6% in September, the Labor Department's Bureau of Labor Statistics said on Tuesday. Economists polled by Reuters had forecast the CPI climbing 0.3% over the month.
Futures tied to the S&P 500 fell sharply on Tuesday after a hotter-than-expected inflation reading strengthened expectations that the Federal Reserve will keep interest rates higher for longer. At 08:32 a.m. ET, Dow E-minis were up 46 points, or 0.09%, and S&P 500 E-minis were down 26.25 points, or 0.35%. Nasdaq 100 E-minis were down 256.5 points, or 0.92%.
CoreWeave is set to report quarterly results after Tuesday’s market close, with investors seeking reassurance about the sustainability of the AI boom and the neocloud firm’s debt burden. CoreWeave and peer Nebius fell 1.3% each in premarket trading.
US consumer prices are expected to rise 0.3% for the month, easing from September’s 0.6% increase, according to a Reuters survey. Annual core inflation is forecast to accelerate slightly to 2.7%, remaining above the Federal Reserve’s 2% target.
Anthropic’s planned listing could rank among the world’s biggest IPOs, with the AI company seeking to raise as much as $64.4 billion, according to a filing. The offering comes amid concerns about excessive AI investment and could intensify competition among industry heavyweights for investor capital.
Nvidia erased its premarket gains and fell 0.2% after The Information reported allegations involving Huang’s relationship with a Chinese businesswoman and the shipment of at least $7.5 billion worth of chips through Chinese companies. The claims have heightened investor scrutiny of Huang’s leadership and future at the AI chipmaker.
Nasdaq 100 futures slipped 0.34% on Tuesday as investors assessed developments surrounding Nvidia CEO Jensen Huang and Anthropic’s planned IPO. Dow futures rose 168 points, or 0.32%, while S&P 500 futures were nearly flat.