Wall Street Turns Red as US Inflation Fuels Interest Rate Expectations

US stock markets weakened again during Tuesday’s trading session (November 10, 2026), following October inflation data that came in higher than anticipated, reinforcing expectations for interest rate hikes by the Federal Reserve.

The S&P 500 index fell by 0.5%, the Dow Jones Industrial Average lost approximately 200 points, and the Nasdaq declined by 1%. This pressure emerged after both headline and core US consumer inflation figures exceeded market projections, driving up bond yields and fueling concerns over a tighter monetary policy.

Negative sentiment was further compounded by hawkish remarks from several Federal Reserve officials, who signaled the possibility of an interest rate hike in December—and even hinted at further tightening in the coming year. Meanwhile, investors are also closely monitoring the potential initial public offering (IPO) of artificial intelligence firm Anthropic, which is reportedly seeking to raise up to $90 billion at a diluted valuation of approximately $1.4 trillion. The scale of this funding requirement has reignited questions regarding the sustainability of AI-related capital expenditures amid rising borrowing costs.

Technology stocks were among the hardest hit. Nvidia shares plummeted nearly 6%, extending losses from the previous session, while Micron fell by nearly 3%. Companies providing large-scale computing infrastructure also saw declines, with Microsoft and Oracle each losing more than 2%. These movements suggest that investors are becoming increasingly cautious regarding the valuations and profit outlooks within the AI ​​sector. The future direction of Wall Street will depend on inflation trends, Federal Reserve policy, and the ability of technology firms to demonstrate tangible returns on their mounting AI investments.

Source: Newsmaker.id