US yields rise and stocks fall as inflation strengthens case for larger Fed hike
October consumer prices rose 0.4%, exceeding economists’ forecasts, while core inflation also came in above expectations.
Tech gains lift global stocks as Nvidia drops after hours
CoreWeave rose 24.7% after forecasting profitability in 2028, while the dollar strengthened as traders anticipated a Federal Reserve rate increase.
Technology shares helped push major stock indexes higher on November 11 as CoreWeave's outlook buoyed sentiment toward artificial intelligence investments. Nvidia gained 2.9% during regular trading before falling 8% after hours.
CoreWeave said it expected to reach profitability in 2028, and its shares closed 24.7% higher. The forecast eased concerns about whether demand could sustain its debt-funded expansion. Nvidia's later decline followed a media report, citing people familiar with the matter, that its board was preparing to remove CEO Jensen Huang.
The Nasdaq Composite advanced 400.31 points, or 1.60%, to 25,466.19. The S&P 500 added 98.45 points, or 1.31%, closing at 7,619.38, while the Dow Jones Industrial Average gained 254.60 points, or 0.49%, to 52,486.49. Technology stocks in the S&P 500 rose 2.7%.
Outside the United States, the STOXX 600 climbed 0.7% as investors returned to AI-linked shares in Europe, following technology gains in Asia. MSCI's global stock gauge advanced 12.41 points, or 1.12%, to 1,121.15.
The dollar index increased 0.7% to 102.92 after stronger-than-expected U.S. inflation reinforced expectations of a Federal Reserve rate increase. CME FedWatch showed traders pricing in a hike at the next month's meeting, including a roughly 11% probability of a half-percentage-point increase. U.S. Treasury trading was closed for Veterans Day.
Oil also advanced after Iran's security chief said enriched nuclear material would not be permitted to leave the country. Brent settled at $92.76, up $1.27, or 1.39%. U.S. West Texas Intermediate rose 49 cents, or 0.57%, to $86.53.