US stock market slip after CPI data raises Fed rate-hike bets, Digi Mart USA News: US stocks slipped Tuesday as investors digested a hotter-than-expected inflation report that cemented bets that the Federal Reserve will raise interest rates next month. The Dow Jones Industrial Average (^DJI) fell 0.6%, while the S&P 500 (^GSPC) gave back 0.8% of its gains, and the tech-heavy Nasdaq Composite (^IXIC) tumbled 1.4%.
The moves follow a sharp rally in US stocks on Monday. The Consumer Price Index, released Tuesday morning, showed prices rose 0.4% in October from a month earlier, higher than the 0.3% economists had expected but cooler than September’s 0.6% gain.
The October report did not include annual inflation figures because last year’s government shutdown limited the data available.
Traders now overwhelmingly expect the Fed to raise interest rates by 25 basis points, while a subset of Fed watchers expects a larger 50 basis point hike. Recent comments by Fed Governor Chris Waller reinforced those bets, as he said he would be open to a larger hike.
Nvidia (NVDA) investors continue to react to the board’s investigation into CEO Jensen Huang following reports of his affair with an alleged Chinese spy. Nvidia stock continued to edge lower Tuesday morning after falling more than 4% the day before.
In other tech news, Anthropic began its roadshow and released an updated filing ahead of its highly anticipated IPO. The AI lab is moving forward with its public debut despite recent volatility in tech stocks and is seeking a valuation of $1.4 trillion.
Oil prices are falling, with Brent crude (BZ=F), the international benchmark, and WTI crude (CL=F), the US benchmark, each declining by around 3%. While most third-quarter earnings season reports are behind us, Nvidia-backed neocloud CoreWeave (CRWV) and quantum computing stocks Quantum (QBTS) and Rigetti Computing (RGTI) report results after the bell today.
