On Tuesday, the three major U.S. stock indices closed slightly lower after inflation data for October came in higher than expected, and Federal Reserve officials hinted that they might increase interest rate hikes in the coming months.
The Dow Jones Industrial Average fell 157.85 points, a decrease of 0.30%, to 52,231.89; the S&P 500 Index fell 29.01 points, a decrease of 0.38%, to 7,520.93; the Nasdaq Composite Index fell 187.26 points, a decrease of 0.74%, to 25,065.87.
The Philadelphia Semiconductor Index fell by 0.35%, NVIDIA dropped by more than 5%, with a cumulative decline of over 9% in the past two trading days; Intel and ARM fell by more than 2%; Broadcom rose by nearly 4%, TSMC rose by over 2%, and AMD and Qualcomm rose by over 1%; the storage sector was weak, with Hynix falling by more than 3%, Sandisk falling by about 3%, and Micron falling by over 1%. The performance of the "Big Seven" tech companies in the U.S. stock market was mixed: Amazon rose by 1.48%, Tesla by 0.46%, Meta Platforms by 0.02%, Google by 0.39%, Apple by 0.61%, and Microsoft by 2.18%.
Anthropic has launched its roadshow and released the updated prospectus, preparing for the highly anticipated IPO. Despite the recent significant fluctuations in tech stocks, this AI laboratory is still advancing its public listing plans, aiming for a valuation of $1.4 trillion.
Oil prices have fallen, with both the international benchmark Brent crude and the US benchmark WTI crude declining by about 1%.
The consumer price index ( CPI ) in October rose by 0.4% month-on-month, higher than the expected 0.3%. The core CPI , which excludes more volatile food and energy prices, rose by 0.3% month-on-month in October, with an earlier expectation of 0.2%. Due to the government shutdown in 2025, the report on Tuesday did not provide annual data.
Affected by this report, traders are concerned about the increased likelihood of interest rate hikes in 2027, and U.S. Treasury yields have risen accordingly. The yield on 10-year Treasuries has rebounded above 5%.
Earlier on Tuesday, Federal Reserve Governor Christopher Waller spoke in London, stating that he believes there is a greater likelihood of a rate hike in December and opened the door to a possible 50-basis-point increase under ongoing inflationary pressures.
"Although the exact timing of the interest rate hike is not crucial, it is indeed important to ensure that the promised rate hike is implemented within a reasonable time frame," he stated.
Traders currently believe that a rate hike in December is almost certain, with a small possibility of an extremely large-scale hike. They also expect at least another 25 basis points of interest rate increase at some point next year.
"The market is speculating that the Federal Reserve may have to raise interest rates more aggressively next year," said Bank Asset Management, a national investment strategist at Tom Hainlin. He later added, "Data suggests that inflation may be somewhat sticky over a longer period of time."











