Hot US Inflation Pushes 10-Year Yield Near 5% as Nvidia and AI Names Move Markets

Wall Street: inflation and yields in focus

Stocks fell on Tuesday as the 10-year Treasury yield approached the 5% mark following the latest US inflation report, according to MarketWatch. One portfolio manager quoted there said he did not think the Federal Reserve should raise its benchmark rate by another 25 basis points.

The October reading came in above expectations, with prices up 0.4% on the month, driven by shelter, food and energy costs, the BBC reports. An Investing.com headline says Fed officials are opening the door to a quicker round of rate hikes as inflation worsens. The Fed's most recent policy statement was issued on 28 October.

Big US companies: Nvidia, CoreWeave and a large AI listing

Nvidia shares dropped sharply on Monday after an investigation into chief executive Jensen Huang's affair with a woman believed to be a Chinese spy, wiping hundreds of billions of dollars from its market value, according to the BBC. The company has since hired a major US law firm to investigate, and President Trump said the FBI is investigating.

CoreWeave's stock rose after a third-quarter revenue beat and about $9 billion in planned prepayments eased investor concerns about its debt, MarketWatch reports.

Anthropic, the developer of the Claude chatbot, is seeking a valuation of up to $1.4 trillion in its coming Wall Street listing, below the $2 trillion that had been widely reported, as investors question the durability of the AI boom, The Guardian reports. The BBC says the shares will be offered at $70 to $78, lower than expected.

Asia and Europe

In Japan, the Nikkei 225 closed up 1.42%, and Kirin Holdings reported an 18% rise in nine-month profit.

In Europe, third-quarter results continued: ABN AMRO reported a 52% rise in net profit to 940 million euros, Brenntag reported higher profit and confirmed its outlook, and Vestas reported higher profit but lower orders.

Central banks

The Bank of England raised Bank Rate to 4% on 5 November. The think tank Niesr argues the increase was timid and could leave inflation above target until at least 2030, The Guardian reports. The ECB's most recent monetary policy decisions were published on 29 October.

Sources

• MarketWatch: stocks fall as 10-year yield nears 5%
• MarketWatch: CoreWeave
• BBC: US inflation
• BBC: Nvidia shares
• BBC: Nvidia law firm
• BBC: FBI investigation
• BBC: Anthropic debut
• The Guardian: Anthropic valuation
• The Guardian: Bank of England critique
• Investing.com: Fed officials
• Investing.com: Nikkei
• Investing.com: Kirin
• Nasdaq: ABN AMRO
• Nasdaq: Brenntag
• Nasdaq: Vestas
• Federal Reserve: FOMC statement, 28 Oct
• Bank of England: November 2026 summary
• ECB: monetary policy decisions