US Stocks Fall as Hot Inflation Fuels Fed Rate Hike Bets
US equities fell on Tuesday as higher-than-expected inflation weighed on stocks and bonds, amid hawkish signals from Fed officials and investor scrutiny of the upcoming Anthropic IPO. The S&P 500 lost 0.5%, the Dow shed 200 points and the Nasdaq declined 1%. Both headline and core US CPI rose more than expected in October, reinforcing expectations of a Fed rate hike next month and lifting bets on multiple rate increases next year. Meanwhile, Anthropic is expected to begin trading as early as next week, seeking to raise up to $90 billion at a diluted valuation of around $1.4 trillion. The offering comes amid strong demand for AI services, although growing concerns over excessive capital expenditure have raised questions about the sustainability of the sector's investment boom. Chipmakers were mostly lower, with Nvidia falling nearly 6%, extending the previous session's losses, while Micron shed almost 3%. Hyperscalers also declined, with Microsoft and Oracle retreating more than 2%.
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US equities fell on Tuesday as higher-than-expected inflation weighed on stocks and bonds, amid hawkish signals from Fed officials and investor scrutiny of the upcoming Anthropic IPO. The S&P 500 lost 0.5%, the Dow shed 200 points and the Nasdaq declined 1%. Both headline and core US CPI rose more than expected in October, reinforcing expectations of a Fed rate hike next month and lifting bets on multiple rate increases next year. Meanwhile, Anthropic is expected to begin trading as early as next week, seeking to raise up to $90 billion at a diluted valuation of around $1.4 trillion.
The offering comes amid strong demand for AI services, although growing concerns over excessive capital expenditure have raised questions about the sustainability of the sector's investment boom. Chipmakers were mostly lower, with Nvidia falling nearly 6%, extending the previous session's losses, while Micron shed almost 3%. Hyperscalers also declined, with Microsoft and Oracle retreating more than 2%.