US stocks fall as hot inflation cements December rate-hike bets
Wall Street closed lower on Tuesday as hotter-than-expected inflation data strengthened expectations of a Federal Reserve rate hike.
Wall Street closed lower on Tuesday as hotter-than-expected inflation data strengthened expectations of a Federal Reserve rate hike. Published 2026-11-11 by Falling Shares.
| By Falling Shares Intelligence, edited by Wung Thomas, Editor-in-Chief
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US stocks closed lower on Tuesday after hotter-than-expected inflation data strengthened expectations of a December Federal Reserve rate hike. The unexpected rise in prices raised the possibility of more aggressive monetary tightening, sparking a surge in bond yields and shifting market focus away from corporate earnings.
Inflation data drives rate-hike bets
US equities retreated as the latest consumer price index report showed core prices rising again, according to reports from the Bureau of Labor Statistics. The data contradicted hopes for cooling inflation, prompting traders to increase bets that the Federal Reserve will raise interest rates in December.
Fed Governor Christopher Waller leaned toward a December rate hike before the 8:30 a.m. ET CPI report was released, adding to the hawkish sentiment. The combination of the data and official commentary stoked fears that interest rates might rise more aggressively than previously anticipated.
Nvidia and broader market slide
The sell-off was broad-based, with the Nasdaq 100 dropping 0.6% in regular trading before contracts for the tech-heavy index rose 0.4% in early Asian hours. Nvidia shares dived 6pc, contributing to a wipeout that saw the company lose $686 billion in market value as Microsoft overtook it.
While Asian stocks rose on the back of strong results from CoreWeave, US markets bucked the global trend. The divergence highlighted how domestic inflation concerns and rate-hike expectations trumped other positive corporate developments.