Tech
Nasdaq Plunges 5.5% as AI Stocks Sell Off After US Midterms
The Nasdaq fell 5.5% on 5 November 2026, its worst day since April 2025, as AI and chip stocks sold off after the US midterms — about $2.5 trillion in…
Tech
Wall Street Falls as Hot October Inflation Revives Fears of a December Rate Hike
TL;DR — the direct answer: US stocks fell on Tuesday, 10 November, after October inflation came in hotter than expected, reviving fears that the Federal Reserve will raise interest rates in December — and possibly by more than expected.
What happened: The Bureau of Labor Statistics reported that consumer prices rose 0.4% in October, above economists' forecast of 0.3%, after a 0.6% rise in September. Core prices, which exclude food and energy, rose 0.3%, also above the 0.2% expected. The Dow Jones Industrial Average fell 161.95 points, or 0.31%, to 52,227.80. The S&P 500 declined 0.38% to 7,521.48, and the Nasdaq Composite lost 0.74% to close at 25,067.23. Technology shares led the decline, with the S&P 500 technology sector falling more than 1% to become the worst-performing of the 11 major sectors.
Why it's trending: The inflation report changed the market's maths on interest rates in a single morning. Markets now fully price in at least a 25-basis-point rate increase at the Federal Reserve's December meeting, up from an 84% probability the day before, according to CME FedWatch data. Federal Reserve Governor Christopher Waller added to the nerves in a speech before the data, saying the central bank should tighten monetary policy 'sooner, rather than later', and that he would consider a larger 50-basis-point move if inflation stayed high. The yield on the 10-year Treasury, which sets the cost of mortgages and many other loans, jumped to around 5%, up from 4.90% at Monday's close. The falls also gave back part of Monday's rally, when the S&P 500 gained 2.35% and the Dow rose more than 1,100 points as oil prices dropped.
Background / context: The inflation numbers come with an unusual footnote: the government could not publish year-over-year comparisons, because it did not collect survey data for October 2025 during a lapse in government funding. Economists had expected the annual rate to come in around 3.9%, up from 3.7% in the year to September. Shelter costs rose 0.3% in October and accounted for more than 30% of the monthly headline increase. The Fed raised its key rate in September for the first time in three years, and this report strengthens the case for another move at its next meeting in early December. Gold fell 2.82% to $4,023.75 on the day, and Brent crude slipped as hopes that the conflict in Iran may be ending weighed on oil.
What we know / what's unconfirmed: Confirmed: the October CPI figures from the Bureau of Labor Statistics, the closing index levels, the 10-year yield move, and Waller's comments. Nvidia was the heaviest single drag on the market, falling 5.5% on the day and 6.3% at its worst, extending a two-session decline to around 10% as the board's investigation into CEO Jensen Huang continues — a story we covered in full yesterday. Unconfirmed: whether the Fed will go for 25 or 50 basis points in December, which depends on the next round of data, and whether the sell-off in AI and chip stocks is a short pause or the start of a deeper correction. Investors will be watching CoreWeave's results after the bell for the next read on AI spending.
What happens next: The Fed's next policy meeting is in early December, and the December rate decision is now the market's main event. Before that, traders will watch the next inflation and jobs data, and earnings from AI infrastructure companies, for signs of whether the October numbers were a blip or a trend.
Frequently asked questions
Q: How much did US stocks fall on 10 November?
A: The Dow fell 162 points (0.31%) to 52,227.80, the S&P 500 fell 0.38% to 7,521.48, and the Nasdaq Composite lost 0.74% to 25,067.23.
Q: What did the October inflation report show?
A: Consumer prices rose 0.4% in October, above the 0.3% economists expected. Core prices, excluding food and energy, rose 0.3% against a 0.2% forecast.
Q: Will the Federal Reserve raise rates in December?
A: Markets now fully expect at least a 25-basis-point increase in December. Fed Governor Christopher Waller said a larger 50-basis-point move is possible if inflation stays elevated.
Q: Why did Nvidia fall?
A: Nvidia dropped 5.5% on the day, extending a two-session decline to about 10%, as the board's investigation into CEO Jensen Huang added to the pressure from the hot inflation data.
Q: Why is there no year-over-year inflation figure?
A: The Bureau of Labor Statistics said it did not collect survey data for October 2025 because of a lapse in government funding, so it cannot publish 12-month changes for October 2026.
Sources: TradingView / Invezz — Dow falls 162 points as hotter US inflation fuels fears of Fed rate hikes, Investopedia — Markets News, Nov. 10, 2026: Stocks fall, Treasury yields jump, and The Motley Fool — Stock Market Midday, Nov. 10: Stocks slide on hot inflation data.
Related Stories
Tech
Nvidia Shares Fall 4% as Board Investigates CEO Jensen Huang Over Alleged Chinese Spy Affair
Nvidia shares fell about 4% on 9 November after CEO Jensen Huang admitted an affair with an executive alleged to be a Chinese intelligence recruit, and…
Tech
Alphabet Loses $500 Billion in Stock Value on AI Spending Concerns
Alphabet, Google's parent company, reportedly lost $500 billion in stock market value on AI spending concerns, as reported on 31 October 2026. Here is…