Good morning. Stocks fell on Tuesday as the 10-year Treasury yield (^TNX) jumped to 4.93% after a hotter-than-expected October inflation reading, strengthening expectations for a rate hike next month.
Long-dated bond yields, which serve as a benchmark for borrowing costs, were already rising after Fed governor Chris Waller said, ahead of the inflation report, that he would leave the door open for a 50 basis point increase, depending on inflation. The odds of a December rate hike stood at 89% on Tuesday.
The 30-year Treasury (^TYX) yield touched 5.3% while the 2-year yield jumped 14 basis points to 4.69%. Meanwhile, Brent crude oil futures (BZ=F) dropped 3% to near $89 per barrel, while WTI (CL=F) also declined to hover around $84.50 per barrel.
Read more: How soaring Treasury yields could hit your finances
Shares of AI chip heavyweight Nvidia (NVDA) extended declines after President Trump mentioned the FBI was “looking into” CEO Jensen Huang’s affair with a woman believed by US intelligence to be tied to the Chinese government. The rest of the semiconductor sector declined as the Tech (XLK) sector fell amid a broader stock sell-off.
Here’s a check of the markets in the first few minutes of trading, based on a heat map powered by Yahoo Finance AlphaSpace data.
Here are some other notable stocks that Yahoo Finance readers are viewing this morning: Take-Two Interactive (TTOW), Hims & Hers (HIMS), and Sea Limited (SE).
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