Wall Street: Stocks Stumble on Discouraging Inflation Report
US stocks slipped Tuesday after October inflation came in hotter than economists expected. The S&P 500 fell 0.2% and the 10-year Treasury yield jumped to 4.98%, as traders raised bets on Federal Reserve rate hikes in December and beyond.
U.S. stocks stumbled on Tuesday, November 10, 2026, after a discouraging inflation report showed prices rose faster in October than economists expected. The data raised the odds that the Federal Reserve will raise interest rates again at its December meeting.
The S&P 500 fell 0.2% as of 10 a.m. Eastern time, giving back part of its big rally from Monday. The Dow Jones Industrial Average was down 212 points, or 0.4%. The Nasdaq composite slipped 0.1%.
Households paid more than forecast last month for groceries, electricity and other living costs. Bond yields jumped as traders increased their forecasts for Fed rate hikes. The yield on the 10-year Treasury rose to 4.98% from 4.88% late Monday.
That yield helps set mortgage rates and other loan costs for households and businesses. Higher rates slow the economy and make investors less willing to pay high prices for stocks.
The Waller threshold
Fed Gov. Christopher Waller spoke in London before the report came out. He said "a stronger policy move may be needed" if a key underlying inflation measure rose 0.3% from September.
In that case, he said, the Fed should consider a half-point hike instead of the usual quarter point. Moving by only the usual amount could "put our credibility at risk, a risk I am not eager to take," he said.
The report then showed the underlying measure rose exactly 0.3%, the level Waller had named.
Oil falls, AI stocks split
Stocks fell even as oil prices dropped. Brent crude sank 2.4% to $90.32 a barrel, down from more than $112 at the start of the month. President Donald Trump said late Monday that the war in Iran "militarily is effectively over."
Rising yields hit stocks tied to the artificial-intelligence boom hardest. Those shares have also been under pressure since last week, on worries that Democratic wins in statehouses could bring limits on new AI data centers.
Nvidia fell 3.1% and weighed most on the S&P 500. It was already under strain from controversy around CEO Jensen Huang. GE Vernova, which helps power AI data centers, dropped 5.4%.
Advanced Micro Devices rallied 5.5%. CoreWeave, which rents out access to AI chips over the cloud, gained 3.6%.
On Monday, the S&P 500 gained 2.35% to 7,549.94, its biggest daily percentage gain since April 8. Oil's drop had eased inflation fears that day. Traders still put the odds of a December rate hike above 80%, according to CME FedWatch.
Abroad, indexes rose across much of Europe and Asia. South Korea's Kospi jumped 4.4%, one of the world's biggest gains. The Labor Department releases its Producer Price Index report on Friday.
