[New York Stocks] Fall in Unison on "Big Step" Possibility; Nvidia Drops Over 5%

Waller Signals Possibility of a "Big Step"
Logan: "Two Rate Hikes Needed"
Nvidia Plunges Amid Jensen Huang Scandal
Oil Prices Fall as Supply Concerns Ease

Wall Street's three major indexes all closed lower on Nov. 10 (local time). Investor sentiment weakened after the U.S. Consumer Price Index (CPI) for October came in above expectations and Federal Reserve officials repeatedly stressed the need for rate hikes. Meanwhile, Nvidia plunged more than 5% amid a scandal involving its CEO, Jensen Huang.

The Dow Jones Industrial Average closed at 52,231.89, down 157.86 points (0.30%) from the previous session. The S&P 500, which is weighted toward large-cap stocks, fell 29.01 points (0.38%) to 7,520.93, while the Nasdaq Composite, which is weighted toward technology stocks, shed 187.26 points (0.74%) to finish at 25,065.87.

New York Stock Exchange. New York, U.S. - Correspondent Hwang Yunju

The market was affected by October's CPI data and concerns about further Fed tightening. The CPI rose 0.4% from the previous month, exceeding the 0.3% forecast compiled by Dow Jones. Core CPI, which excludes volatile food and energy prices, also rose 0.3%, above expectations of 0.2%.

Hawkish remarks by Fed Governor Christopher Waller also weighed on investor sentiment. Speaking at a conference in London on Nov. 10, Waller said a rate hike in December was likely and stressed that the Fed should also consider raising rates by 0.5 percentage points if inflationary pressures persist.

Lorie Logan, president of the Federal Reserve Bank of Dallas, also stressed the need for further rate hikes. Speaking at a joint energy conference hosted by the Federal Reserve Banks of Dallas and Kansas City in Houston, Texas, on Nov. 10, Logan said, "Given the current economic outlook, it remains clear that the FOMC needs to raise rates by 0.25 percentage points at least twice."

As a result, expectations grew that the Fed could raise rates further next year. U.S. Treasury yields surged on the inflation data and Waller's remarks, with the 10-year Treasury yield climbing back above 5%.

Tom Hainlin, chief investment strategist at U.S. Bank Asset Management, said, "The market is pricing in the possibility that the Fed may have to raise rates more aggressively next year," adding, "This CPI report showed that inflation could remain elevated for longer than expected."

Among individual stocks, Nvidia plunged 5.47%, leading the declines in the major indexes. The drop came as national security concerns and uncertainty about the company's management spread after CEO Huang acknowledged having an affair with a woman suspected of having ties to Chinese intelligence. Nvidia also failed to join the rally in technology stocks the previous day.

U.S. Secretary of State Marco Rubio. The Asia Business Daily

International oil prices ended lower as concerns about supply disruptions in the Middle East eased. U.S. Secretary of State Marco Rubio told reporters at the G7 foreign ministers' meeting in Paris, France, that "(President Donald Trump) has concluded that there is no need for large-scale combat operations at this time," adding, "because we are achieving the same objective through economic means."

West Texas Intermediate (WTI) crude for December delivery fell 0.93% from the previous session to settle at $86.04 a barrel on the New York Mercantile Exchange. Brent crude for January delivery settled at $91.49 a barrel on ICE Futures, down 1.17% from the previous session.

International gold prices fell. Gold futures for December delivery settled at $4,030.20 an ounce on the New York Mercantile Exchange, down 2.0% from the previous session.

Treasury yields rose as expectations grew that the Fed could deliver a larger rate hike in December, following higher-than-expected inflation and hawkish remarks by Fed Governor Christopher Waller.

Edward Meir, an analyst at Marex, said, "The higher-than-expected inflation figures had a negative impact on gold prices in the short term." However, Standard Chartered said gold was still trading above the key support level of $4,000 an ounce, and forecast that international oil prices, inflation risks, and stock market movements would determine gold's future direction.

This content was produced with the assistance of AI translation services.