Wall Street Slides as Nvidia Plunges 5.5 Percent, Inflation Runs Hot
(MENAFN) Wall Street ended lower Tuesday as a steep sell-off in Nvidia and a hotter-than-expected inflation reading stoked fears that the Federal Reserve will keep raising interest rates.
The Dow Jones Industrial Average lost 157.86 points, or 0.3%, closing at 52,231.89. The S&P 500 shed 29.01 points, or 0.38%, to settle at 7,520.93. The Nasdaq Composite fell 187.26 points, or 0.74%, to 25,065.87.
Nvidia shares tumbled 5.53% to $168.80, adding to recent losses as investors weighed an inquiry led by the company’s independent directors. The chipmaker’s market value briefly dipped below $4 trillion during the session. The directors said Tuesday they had hired former federal prosecutor Joon H. Kim and the law firm Wachtell, Lipton, Rosen & Katz to run the probe, which was announced Sunday.
On the inflation front, US consumer prices climbed 0.4% in October, topping the 0.3% gain economists had forecast, though down from a 0.6% jump in September. Core prices, which strip out food and energy, rose 0.3% from the prior month, above the 0.2% projection. Year-over-year headline and core figures were not available because the 2025 government shutdown disrupted the collection of comparable October data for that year.
Ahead of the report, Fed Governor Christopher Waller said he backed a quarter-point rate increase in December. He argued, however, that a half-point move should be on the table if monthly core inflation holds at about 0.3% or higher.
The yield on the 10-year US Treasury note rose 12.6 basis points to 4.988%, after briefly topping 5% earlier in the day.
Despite the equity losses, the VIX volatility index slipped 1.7% to around 19.60. Gold dropped 2.6% to $4,030.70 an ounce, while West Texas Intermediate crude futures edged down 0.69% to $86.25 a barrel. The euro weakened 0.55% against the dollar to $1.116.
European stocks mostly rise
European equities finished mostly higher as declining oil prices fed hopes that inflationary pressures may ease.
The pan-European Stoxx Europe 600 gained 0.27% to 658.32. Germany’s DAX climbed 0.31% to 26,347.45, France’s CAC 40 advanced 0.55% to 8,278.59, and Italy’s FTSE MIB rose 0.69% to 51,755.08. Spain’s IBEX 35 led the region with a 0.98% gain to 19,936.40, while the UK’s FTSE 100 bucked the trend, sliding 0.29% to 10,751.59.
The Dow Jones Industrial Average lost 157.86 points, or 0.3%, closing at 52,231.89. The S&P 500 shed 29.01 points, or 0.38%, to settle at 7,520.93. The Nasdaq Composite fell 187.26 points, or 0.74%, to 25,065.87.
Nvidia shares tumbled 5.53% to $168.80, adding to recent losses as investors weighed an inquiry led by the company’s independent directors. The chipmaker’s market value briefly dipped below $4 trillion during the session. The directors said Tuesday they had hired former federal prosecutor Joon H. Kim and the law firm Wachtell, Lipton, Rosen & Katz to run the probe, which was announced Sunday.
On the inflation front, US consumer prices climbed 0.4% in October, topping the 0.3% gain economists had forecast, though down from a 0.6% jump in September. Core prices, which strip out food and energy, rose 0.3% from the prior month, above the 0.2% projection. Year-over-year headline and core figures were not available because the 2025 government shutdown disrupted the collection of comparable October data for that year.
Ahead of the report, Fed Governor Christopher Waller said he backed a quarter-point rate increase in December. He argued, however, that a half-point move should be on the table if monthly core inflation holds at about 0.3% or higher.
The yield on the 10-year US Treasury note rose 12.6 basis points to 4.988%, after briefly topping 5% earlier in the day.
Despite the equity losses, the VIX volatility index slipped 1.7% to around 19.60. Gold dropped 2.6% to $4,030.70 an ounce, while West Texas Intermediate crude futures edged down 0.69% to $86.25 a barrel. The euro weakened 0.55% against the dollar to $1.116.
European stocks mostly rise
European equities finished mostly higher as declining oil prices fed hopes that inflationary pressures may ease.
The pan-European Stoxx Europe 600 gained 0.27% to 658.32. Germany’s DAX climbed 0.31% to 26,347.45, France’s CAC 40 advanced 0.55% to 8,278.59, and Italy’s FTSE MIB rose 0.69% to 51,755.08. Spain’s IBEX 35 led the region with a 0.98% gain to 19,936.40, while the UK’s FTSE 100 bucked the trend, sliding 0.29% to 10,751.59.
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