Hot CPI Lifts 10-Year Yield to 5% as Dow Slips 158 Points and Nasdaq Falls 0.74%

Mumbai, 11 November 2026: US equities closed lower on Tuesday after a hotter-than-expected October inflation reading reinforced expectations that the Federal Reserve will raise interest rates again in December, with technology and semiconductor shares leading the decline.

The Dow Jones Industrial Average fell 157.86 points, or 0.30%, to 52,231.89, the S&P 500 lost 29.01 points, or 0.38%, to 7,520.93, and the Nasdaq Composite dropped 187.26 points, or 0.74%, to 25,065.88.

The session reversed a sharp rally from the prior day as the inflation data and hawkish comments from Fed officials reshaped rate expectations across asset classes, with Treasury yields jumping and the dollar strengthening against major currencies.

Dow Jones Falls 158 Points as Hot CPI Reading Weighs on Blue-Chip Shares

The Dow Jones Industrial Average opened at 52,163.21 and closed at 52,231.89, losing 157.86 points, or 0.30%, after trading between an intraday low of 51,977.08 and a high of 52,316.89. The index’s decline was paced by Nvidia, which fell 4.94% and remained the heaviest drag on the blue-chip benchmark for a second consecutive session.

Microsoft declined 2.07%, while Caterpillar dropped 2.23% as industrial shares came under pressure from rising borrowing cost expectations. On the upside, UnitedHealth gained 1.77%, Amazon rose 1.41%, and Coca-Cola added 0.87%, providing partial offset to the broader decline.

The session followed the release of October consumer price data that exceeded economist forecasts, a development that shifted expectations toward a more aggressive Federal Reserve posture at its December meeting. The Dow’s intraday recovery from its lows suggested that some buying interest emerged as the session progressed, though the index remained firmly in negative territory at the close.

S&P 500 Drops 29 Points as Inflation Data Reshapes Rate Expectations

The S&P 500 opened at 7,513.09 and ended at 7,520.93, losing 29.01 points, or 0.38%, with an intraday range of 7,470.43 to 7,543.92. Technology stocks bore the brunt of the selling, with the Technology Select Sector SPDR Fund falling 1.35%, the weakest performance among the 11 sectors.

Nvidia’s 4.94% decline and Microsoft’s 2.07% drop weighed heavily on the benchmark, while Broadcom bucked the trend with a 4.09% gain, Texas Instruments added 3.12%, and Lockheed Martin rose 2.52%. Among the largest decliners, Lineage fell 12.51%, AST SpaceMobile dropped 11.95%, and IREN lost 9.60%. The index’s move came as the October CPI report showed prices rising faster than anticipated, strengthening the case for additional monetary tightening.

Market breadth was notably weak, with only about 150 stocks in the index positioned to close higher, and only two of the 11 major sectors in positive territory at the session’s low point. Financials and consumer staples were the most resilient groups, while technology and industrials lagged.

Nasdaq Composite Falls 0.74% as Technology Shares Retreat on Rate Concerns

The Nasdaq Composite opened at 25,047.45 and closed at 25,065.88, marking a loss of 187.26 points, or 0.74%, after touching an intraday high of 25,286.83 and a low of 24,816.10. Technology and growth-oriented shares recorded broad declines, with Nvidia falling 4.94%, Microsoft dropping 2.07%, and Arm Holdings losing 1.88%. Apple slipped 0.56%, while Alphabet declined 0.28%.

Among the index’s notable gainers, Broadcom rose 4.09%, Texas Instruments climbed 3.12%, and Qualcomm added 1.56%. The technology-heavy benchmark’s decline reflected the session’s dominant catalyst: an inflation reading that reinforced expectations for higher borrowing costs, a development that weighed most heavily on richly valued growth shares.

The Nasdaq briefly turned positive in morning trading before retreating again, underscoring the intraday volatility that accompanied the data release. Semiconductor names within the index were mixed, with memory makers Micron and SanDisk under pressure while analog and networking chipmakers held up better.

Also Read: What Is the New York Stock Exchange (NYSE)?

Russell 2000 Slips 0.63% as Smaller Stocks Track Broader Market Weakness

The Russell 2000 opened at 2,817.17 and closed at 2,823.04, losing 17.77 points, or 0.63%, with an intraday range of 2,799.25 to 2,826.54. Movements among smaller-cap companies reflected the broader risk-off tone, with several names recording sharp declines.

Qualys fell 13.51%, Lineage dropped 12.05%, and Rigetti Computing lost 10.74%. On the upside, Zeta Global gained 8.17%, Mercury Systems rose 4.97%, and BTSG added 4.86%. The small-cap benchmark’s performance came as the inflation data lifted Treasury yields and reinforced expectations for tighter Federal Reserve policy, conditions that typically weigh more heavily on smaller companies with greater sensitivity to borrowing costs.

The Russell 2000’s decline was less severe than the Nasdaq’s, reflecting the index’s lighter concentration in technology shares and its greater exposure to financial and industrial names that held up relatively better during the session.

S&P 100 Declines 0.45% as Large-Cap Technology Shares Retreat

The S&P 100 opened at 3,696.44 and finished at 3,698.52, recording a loss of 16.63 points, or 0.45%, after trading between 3,668.96 and 3,716.15. The large-cap benchmark’s decline was driven by weakness in its most heavily weighted technology constituents, with Nvidia falling 4.94% and Microsoft dropping 2.07%.

Broadcom’s 4.09% gain and Amazon’s 1.41% advance provided limited support. The index’s movement mirrored the broader market’s response to the October CPI report, which showed core inflation rising 0.3% month over month, above the 0.2% consensus estimate. The S&P 100’s intraday trading range of roughly 47 points reflected the tension between selling pressure in growth shares and buying interest in defensive and value-oriented large caps.

Dow Composite Slips 28 Points as Transport and Utility Averages Diverge

The Dow Jones Composite Average opened at 16,429.63 and closed at 16,464.91, losing 28.15 points, or 0.17%, after moving between 16,347.16 and 16,487.22. The Dow Jones Transportation Average ended at 20,416.58, compared with an opening level of 20,343.91, representing a gain of 20.73 points, or 0.10%. The Dow Jones Utility Average closed at 1,112.41, up 0.22 points, or 0.02%, from its opening level of 1,107.95.

The transport average’s modest advance came despite weakness in Caterpillar, which fell 2.23% and is a component of the broader composite, while utility shares held steady as investors sought defensive positioning amid the technology-led selloff.

The divergence between the transport and utility averages and the broader composite underscored the session’s rotation dynamics, with economically sensitive industrial names under pressure while regulated utilities attracted modest support.

Philadelphia Semiconductor Index Falls 0.35% as Chip Stocks Extend Losses

The Philadelphia Semiconductor Index (SOX) opened at 9,876.81 and closed at 9,998.33, losing 35.60 points, or 0.35%, after trading between 9,777.17 and 10,197.21. Semiconductor constituents recorded mixed performance, with Nvidia falling 4.94%, Micron dropping 0.89%, and Intel declining 1.84%.

Broadcom gained 4.09%, Texas Instruments rose 3.12%, and Applied Materials added 0.86%. The sector benchmark’s modest decline came as the broader chip group continued to digest a sharp selloff that has erased roughly $5 trillion in market value from a basket of 62 chip stocks since early October, with Nvidia’s decline accounting for a significant portion of the losses. The SOX briefly dipped below the 9,800 level in morning trading before recovering some ground, with the index’s relative strength index for Nvidia sinking to 23 out of a possible 100, its most oversold reading since June 2019.

Also Read: How to invest in US stocks

NYSE Composite Rises 0.02% as Financial and Defensive Shares Offset Technology Weakness

The NYSE Composite Index opened at 24,339.78 and closed at 24,477.42, gaining 4.80 points, or 0.02%, after trading between 24,300.68 and 24,496.06. The index’s marginal advance reflected strength in financial and defensive sectors that offset technology losses. Financial shares were the best-performing sector, with the Financial Select Sector SPDR Fund falling just 0.03%, while Consumer Staples slipped 0.21% and Consumer Discretionary lost 0.34%.

The composite’s resilience relative to the technology-heavy Nasdaq reflected the session’s rotation away from growth shares toward value and defensive positioning as rate expectations shifted. The NYSE Composite’s ability to hold near the flat line while the Nasdaq fell nearly 0.75% highlighted the broadening gap between mega-cap technology performance and the broader universe of listed equities.

S&P MidCap 400 Falls 0.39% as SmallCap 600 Declines 0.36%

The S&P MidCap 400 opened at 3,701.34 and closed at 3,700.81, moving 14.42 points, or 0.39%, with an intraday range of 3,671.57 to 3,705.97. The S&P SmallCap 600 opened at 1,714.73 and ended at 1,716.22, losing 6.15 points, or 0.36%, after trading between 1,699.87 and 1,718.28.

The two benchmarks reflected movements among mid- and small-cap shares as the inflation data and rising Treasury yields weighed on rate-sensitive segments of the market, with homebuilders and gold miners among the weakest groups. The SPDR S&P Homebuilders ETF fell 2.5% as the jump in Treasury yields threatened higher mortgage rates, while the VanEck Gold Miners ETF sank 5.3% as bullion retreated.

Both mid- and small-cap benchmarks held up better than the technology-heavy Nasdaq, reflecting their lighter exposure to the growth shares that bore the brunt of the selling.

Hotter October CPI at 0.4% Sends 2-Year Treasury Yield Soaring 19.28 Basis Points as Fed Hike Bets Rise

The principal market catalyst was the October Consumer Price Index report, which showed prices rising 0.4% month over month, above the 0.3% consensus estimate and down from September’s 0.6% gain. Core inflation, which excludes food and energy, rose 0.3%, exceeding the 0.2% forecast and matching the prior month’s pace. The Bureau of Labor Statistics did not publish annual inflation figures because the 2025 government shutdown prevented data collection in October of that year, leaving no comparison base.

The report followed comments from Federal Reserve Governor Christopher Waller, who said in London before the release that he was leaning toward supporting a 25-basis-point rate increase at the December meeting and would consider a 50-basis-point move if inflation data came in hotter than expected. Dallas Fed President Lorie Logan separately said the central bank needs to deliver at least two more quarter-point rate increases to bring inflation down.

Oil prices fell as US Secretary of State Marco Rubio signalled that further strikes on Iran may not be necessary, easing supply concerns that had supported crude prices in prior weeks. Brent crude briefly dipped below $90 a barrel for the first time since August.

Treasury yields jumped sharply following the inflation release, with the 2-year yield rising 19.28 basis points to 4.74%, its biggest one-day jump since April 2025. The dollar strengthened against major currencies, while gold fell more than 1.7% as higher rate expectations reduced the appeal of the precious metal.

VIX Rises 1.66% to 19.59 as Volatility Expectations Increase

The CBOE Volatility Index (VIX) changed 1.66% to 19.59, compared with its previous close of 19.92, after trading between 19.29 and 21.61 during the session. The index measures expected volatility in the S&P 500 over the coming 30 days.

Its movement coincided with the release of the hotter-than-expected inflation report and the resulting shift in rate expectations, which prompted traders to price a higher probability of a 50-basis-point increase at the December Federal Open Market Committee meeting.

The VIX remained below its intraday high of 21.61 as equities recovered from their worst levels of the session, suggesting that volatility expectations moderated somewhat as the trading day progressed. The index’s modest gain stood in contrast to the sharper moves in equity benchmarks, reflecting the fact that the session’s decline was orderly rather than disorderly.

Also Read: US Stock Market Timings 

All 11 S&P 500 Sectors Fall as Technology Leads Losses at 1.35% Amid Rising Treasury Yields

Performance across the 11 S&P 500 sectors was broadly lower, with all groups recording declines. Financials recorded the smallest loss at 0.03%, while Consumer Staples fell 0.21% and Consumer Discretionary dropped 0.34%. The remaining sectors recorded the following moves: Communication Services 0.43%, Health Care 0.57%, Utilities 0.60%, Real Estate 0.63%, Energy 0.63%, Materials 0.87%, Industrials 0.96%, and Technology 1.35%. The sector movements followed the inflation report and the accompanying rise in Treasury yields, which weighed most heavily on technology and industrial shares while defensive sectors held up relatively better.

The clustering of the top three sectors within a narrow range of performance suggested that the session’s selling was driven more by broad rate concerns than by sector-specific developments. Homebuilders and gold miners were among the weakest industry groups, reflecting their sensitivity to higher borrowing costs and falling bullion prices respectively.

Nvidia Plunges 4.94% and Microsoft Drops 2.07% as Anthropic AI Tools Fuel Tech Competition Fears

Among the Magnificent Seven, Nvidia moved 4.94% lower and Microsoft declined 2.07%, while Apple slipped 0.56% and Alphabet fell 0.28%. Amazon gained 1.41%, Tesla added 0.30%, and Meta Platforms edged 0.07% higher. Their daily movements contributed to the performance of major US equity benchmarks, with Nvidia’s decline alone accounting for a substantial portion of the Nasdaq Composite’s loss.

Microsoft’s drop came as Anthropic unveiled a new suite of workplace tools for its Claude chatbot, a development that added to competitive concerns in the productivity software space. The divergence within the group, with Amazon and Tesla posting modest gains while Nvidia and Microsoft fell, reflected the rotation dynamics that characterised the session.

US October CPI Rises 0.4% Against 0.3% Forecast as Core Inflation Beats Expectations at 0.3%

The latest economic data showed the Consumer Price Index rising 0.4% in October, compared with the 0.3% expectation and September’s 0.6% gain. Core CPI, which strips out volatile food and energy prices, stood at 0.3%, above the 0.2% forecast.

The NFIB small business optimism index edged down to 97.8 in October from 97.9 the prior month. The releases provided the latest information on inflation pressures during the session, with housing costs rising 0.3% and food costs up 0.5%, while energy costs rose 0.7%, down from 5.2% in September.

Grocery prices rose 0.4%, the largest increase since April, while electricity prices climbed 0.9% and airline fares added 0.4%. The data underscored that price pressures remained broad-based beyond the energy category that had driven earlier inflation readings.

US 2-Year Treasury Yield Surges 19.28 Basis Points to 4.74% as Markets Price 100% Fed Hike Odds

The Federal Reserve remained a key focus as markets assessed comments from Governor Christopher Waller, who said he was leaning toward a 25-basis-point increase at the December meeting and would consider a 50-basis-point move if inflation data warranted stronger action. Dallas Fed President Lorie Logan separately said the central bank needs to deliver at least two more quarter-point rate increases to bring inflation down. The Fed’s next policy meeting is scheduled for December 8-9.

The 2-year US Treasury yield stood at 4.74%, up 19.28 basis points, while the 5-year yield was 4.75%, up 10 basis points. The 10-year Treasury yield stood at 4.988%, up 12.76 basis points, and the 30-year yield was 5.29%, up 3 basis points.

The yield curve steepened as shorter-term yields rose more sharply than longer-term yields, reflecting the shift in near-term rate expectations following the inflation report. The 2-year yield’s move was its biggest one-day jump since April 2025, when President Trump’s tariff announcements roiled global markets.

Traders priced a 100% probability of at least a quarter-point hike in December, with more than 10% of bets on a half-point move.

Oil Drops 1.4% to $91.25 as Iran Strike Fears Ease, Gold Slides 1.78% on Rising Yields

Brent crude traded at $91.25, changing 1.4% lower, while WTI crude stood at $86.24, moving 0.7% lower. Gold traded at $4,041.20, changing 1.78% lower, while silver moved 2.6% lower to $51.31. Copper changed 0.5% lower, and natural gas moved 0.8% lower.

The commodity moves followed signals from US officials that further strikes on Iran may not be necessary, easing supply concerns that had supported crude prices in prior weeks. Secretary of State Marco Rubio said the economic campaign against Iran was working so well that there was no need for major combat operations, and he noted that oil flows through the Strait of Hormuz had recovered to 80% to 85% of pre-conflict levels on some days. Gold’s decline came as higher Treasury yields reduced the appeal of the non-interest-bearing asset, with the metal falling roughly 8% year-to-date.

Also Read: What Are Fractional Shares? 

US Dollar Index Jumps 0.58% to 102.01 as Inflation Fuels Fed Rate Hike Bets

The US Dollar Index (DXY) moved 0.58% higher to 102.01. EUR/USD stood at $1.1150, down from $1.1221, and USD/JPY traded at 158.80, up from 157.48. GBP/USD was at $1.3324, down from $1.3440. Currency movements followed the inflation data and the resulting shift in rate expectations, which strengthened the dollar against major counterparts as traders priced a higher probability of additional Federal Reserve tightening.

The dollar’s advance was broad-based, with the greenback gaining against the euro, pound, and yen as the rate differential outlook shifted in favour of US assets. The euro’s decline came despite relatively stable European economic data, with the currency pair moving primarily in response to US developments.

The closing session was shaped by October CPI rising 0.4% and core inflation at 0.3%, reinforcing expectations for a December rate increase. The Dow fell 0.30%, the S&P 500 lost 0.38%, and the Nasdaq dropped 0.74%, while the 10-year Treasury yield rose to 4.988%. These figures provide a factual summary of the session and its key market developments.