US stock futures rose slightly on Tuesday night as investors looked to recover from a losing session driven by Nvidia and higher-than-expected inflation data. Dow Jones Industrial Average futures increased by 88 points, or 0.2%, while S&P 500 futures climbed 0.2% and Nasdaq-100 futures advanced 0.4%.
Market Movement and Nvidia Decline
During regular trading, the Dow fell more than 150 points, while the S&P 500 and Nasdaq Composite dropped 0.4% and 0.7%, respectively. The downturn centered around chipmaker Nvidia, which saw its stock decline by 5.5%. The drop occurred as CEO Jensen Huang’s affair with an alleged Chinese spy weighed on the company for the second consecutive session.
The two-day slide reduced Nvidia’s market capitalization to roughly $4.07 trillion, marking its lowest level since late March. Meanwhile, equity markets in Asia showed mixed results on Wednesday, with Japan’s Nikkei 225 up 0.85%, South Korea’s Kospi gaining 1.22%, and Australia’s S&P/ASX 200 adding 0.23%. Conversely, Hong Kong’s Hang Seng Index fell 0.66% and the CSI 300 dropped 0.39%.
Inflation Data and Federal Reserve Outlook
Equities also declined on Tuesday after consumer price index figures for October showed a month-over-month increase of 0.4%, coming in higher than anticipated. This inflation report reinforced market expectations that the Federal Reserve will implement a rate hike in December. According to the CME Group’s FedWatch tool, expectations for a quarter-point rate increase next month climbed to approximately 90% following the data release, supported further by comments from Fed Governor Christopher Waller.
Rick Rieder, chief investment officer of global fixed income at BlackRock, wrote that higher-than-desired inflation levels will keep the central bank dissatisfied with the pace of progress. He stated that hiking the federal funds policy rate in December remains the base case for both BlackRock and the broader market, with the primary question now focusing on the extent of the hike.
Traders will monitor the artificial intelligence sector on Wednesday following CoreWeave’s third-quarter revenue report, which exceeded analyst expectations and initially lifted the neocloud stock. The US bond market will be closed on Wednesday in observance of Veterans Day.
