Hotter-Than-Expected Inflation Data Lifts Rate-Hike Odds, Sends 10-Year Treasury Yield Soaring

Deep News11-11

U.S. October CPI rose 0.4% month over month, coming in above expectations.

Spurred by the inflation report, U.S. stocks fell on Tuesday, the 10-year Treasury yield jumped to 4.93%, and the market strengthened its expectations for a Federal Reserve rate hike next month.

Before the inflation data was released, Fed Governor Christopher Waller had already said the size of a December rate hike would be assessed based on inflation conditions, and those remarks had already pushed long-end borrowing-cost benchmark yields into an upward channel.

The CME FedWatch tool showed the market-implied probability of a December rate hike moving even higher.

The 30-year Treasury yield touched 5.3%; the 2-year Treasury yield rose 14 basis points to 4.69%.

At the same time, Brent crude futures fell 3% to near $89 a barrel; WTI crude also retreated to about $84.50 a barrel.

AI chip giant Nvidia's stock extended its decline.

Trump said the Federal Bureau of Investigation (FBI) is "investigating" a rumored scandal involving CEO Jensen Huang.

Amid a broad market selloff, the technology sector weakened, and other semiconductor names moved lower in tandem.

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