US Stocks Fall as Hot Inflation Report Revives Fed Rate-Hike Fears — Nvidia Drops 5.5%

US stocks closed lower on Tuesday, November 10, 2026, giving back part of Monday's sharp rebound after a hotter-than-expected October inflation report reinforced expectations that the Federal Reserve will raise interest rates again in December. The Nasdaq fell 0.7%, the S&P 500 slipped 0.4% and the Dow lost 0.3%, while Nvidia dropped 5.5% to pace Dow decliners.

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Nov 11, 2026 - 04:27

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Traders in blue jackets working on the busy floor of the New York Stock Exchange, surrounded by monitors and large electronic ticker boards displaying market data.

US Stocks Fall as Hot Inflation Report Revives Fed Rate-Hike Fears — Nvidia Drops 5.5%

US stocks closed lower on Tuesday, November 10, 2026, giving back part of the previous day's sharp rebound after an inflation report came in hotter than expected — and reminded investors that the Federal Reserve may not be done raising interest rates.

The tech-heavy Nasdaq Composite shed 0.7% to 25,065.88, after falling as much as 1.7% in early-afternoon trading. The Dow Jones Industrial Average finished down 0.3% at 52,231.89, and the benchmark S&P 500 slipped 0.4% to 7,520.93. All three indexes closed well above their session lows, but the day still extended a volatile stretch of trading for US stocks.

The pullback came one day after a powerful rally. On Monday, the S&P 500 jumped 2.35% to 7,549.94 — its best day since April — the Dow leaped 1,104 points, or 2.15%, to 52,389.75, and the Nasdaq climbed 2.74% to 25,253.14, wiping out most of the losses posted last week, when tech stocks tumbled amid concerns that Democratic control in Congress and several key statehouses could jeopardise the AI development that has propelled the market in recent years.

The inflation report that changed the mood

The October consumer price index report from the Bureau of Labor Statistics weighed on market sentiment on Tuesday. Consumer prices rose 0.4% last month — down from the month before, but slightly higher than the 0.3% economists had anticipated.

That small miss mattered. The hot inflation reading bolsters the view that the Fed, which raised its key rate in September for the first time in three years, will do so again at its next policy meeting in early December. The December 9 meeting of the Federal Open Market Committee is now the market's next big test, and a rate hike is widely priced in.

The bond market moved in the same direction. The yield on the 10-year Treasury — which affects interest rates on all sorts of loans, notably mortgages — was at 4.98% late in the session, down from an intraday high of 5.03% but up from 4.90% at Monday's close, as investors priced in the prospect of more hikes by the Fed.

Nvidia's slide deepens

Shares of Nvidia, the company at the forefront of the AI boom, dropped 5.5% on Tuesday to pace Dow decliners, amid uncertainty about the chipmaker's leadership. The stock has lost nearly 10% already this week following news that CEO Jensen Huang is being investigated by the company's board over his relationship with a woman alleged to be a spy for China.

Other chip stocks were mixed. Shares of Micron dropped 1% and Intel fell 2%, while Broadcom climbed 4% and Advanced Micro Devices added 1%. The iShares Semiconductor ETF, which jumped 7% on Monday, ended the day near unchanged.

Among other noteworthy tech movers, shares of Microsoft fell 2% and storage device maker SanDisk declined 3%, while Amazon tacked on 1.5%.

Earnings movers: Skydance sinks, Take-Two jumps

The quarterly earnings season is winding down, but a handful of stocks were on the move after companies reported results. Shares of Skydance tumbled nearly 8% to lead S&P 500 decliners after the media giant released its first earnings report since the merger of Paramount Skydance and Warner Bros. Discovery.

Take-Two Interactive shares jumped 8% despite results that missed Wall Street expectations, as the video game maker cited huge preorder numbers for the upcoming release of "Grand Theft Auto VI."

Oil, gold and bitcoin also slide

In other markets, WTI oil futures were recently down 0.5% at $86.50 per barrel, adding to Monday's steep decline and trading at their lowest level since late August, as investors await fresh developments in the Iran war. Brent crude had fallen 5.8% on Monday to $92.57 a barrel after US President Donald Trump said fresh military strikes on Iran were "highly unlikely".

Gold futures were down 1.8% at $4,040 an ounce, while bitcoin traded at $73,800, down from Monday's high around $76,000 and near its lowest level in nearly three months.

What to watch next

The market now turns to the rest of the week's data for direction. Producer prices arrive on Friday, and the December 9 Fed meeting looms over everything. If inflation keeps running hot, the case for another rate hike only strengthens — and the AI trade, which has driven the market for years, will stay under pressure. If the data cools, Monday's rebound could resume.

For now, the message from Tuesday is simple: one strong day does not end a volatile stretch. The market recovered most of last week's losses in a single session — and then spent the next session worrying about the very thing that could take them back.