US Futures Decline After Hot CPI
US equity futures fell on Tuesday due to evidence of higher inflation as markets assessed details surrounding the Anthropic IPO. Contracts for the S&P 500 fell 0.6% and those for the Nasdaq 100 fell 1.2%, while the Dow was flat. Both the headline and core US CPIs rose more than expected in October, aligning with the market's certainty of a Federal Reserve rate hike next month and lifting expectations of multiple rate hikes next year. Yields rebounded, pressuring high-debt AI infrastructure and services companies. Micron, Marvell, and SanDisk fell over 3% premarket, compounded by sharp losses for SoftBank due to large data-center write-downs. Correspondingly, GE Vernova sank nearly 9%. Meanwhile, Nvidia extended its plunge from yesterday as CEO Huang's affair endangered his leadership stability.
US equity futures fell on Tuesday due to evidence of higher inflation as markets assessed details surrounding the Anthropic IPO. Contracts for the S&P 500 fell 0.6% and those for the Nasdaq 100 fell 1.2%, while the Dow was flat. Both the headline and core US CPIs rose more than expected in October, aligning with the market's certainty of a Federal Reserve rate hike next month and lifting expectations of multiple rate hikes next year. Yields rebounded, pressuring high-debt AI infrastructure and services companies.
Micron, Marvell, and SanDisk fell over 3% premarket, compounded by sharp losses for SoftBank due to large data-center write-downs. Correspondingly, GE Vernova sank nearly 9%. Meanwhile, Nvidia extended its plunge from yesterday as CEO Huang's affair endangered his leadership stability.