US stock markets ended Tuesday’s trading session in negative territory as a sharp decline in Nvidia shares and higher-than-expected inflation figures raised concerns about possible interest rate increases by the Federal Reserve.
The Dow Jones Industrial Average lost 157.86 points, representing a 0.3% decline, to finish at 52,231.89. The S&P 500 dropped 29.01 points, or 0.38%, closing at 7,520.93. Meanwhile, the Nasdaq Composite decreased by 187.26 points, equivalent to 0.74%, to settle at 25,065.87.
Nvidia shares plunged 5.53% to $168.80, extending their recent losses as investors monitored an investigation initiated by the company’s independent directors. During the trading session, the semiconductor giant’s market value temporarily slipped below the $4 trillion threshold.
On Tuesday, Nvidia’s independent directors announced that they had appointed former federal prosecutor Joon H. Kim and the law firm Wachtell, Lipton, Rosen & Katz to oversee the investigation, which was first announced on Sunday.
Meanwhile, US consumer inflation increased by 0.4% in October, exceeding economists’ expectations of 0.3%. However, the latest figure represented a slowdown compared with September’s 0.6% increase.
Core inflation, which excludes food and energy costs, rose 0.3% during the month, surpassing the projected 0.2% increase. Annual headline and core inflation figures were not released because the 2025 government shutdown had disrupted the collection of comparable October data.
Ahead of the inflation report, Federal Reserve Governor Christopher Waller expressed support for a 0.25-percentage-point interest rate increase in December. However, he suggested that a larger 0.5-point adjustment could be considered if monthly core inflation remained at approximately 0.3% or above.
The yield on 10-year US Treasury bonds increased by 12.6 basis points to 4.988%, after briefly crossing the 5% mark earlier in the day.
Despite the overall market downturn, the CBOE Volatility Index (VIX), which measures market uncertainty, declined 1.7% to approximately 19.60.
Elsewhere, gold prices dropped 2.6% to $4,030.70 per ounce, while West Texas Intermediate crude futures slipped 0.69% to $86.25 per barrel. The euro also weakened by 0.55% against the US dollar, trading at $1.116.
European Stocks Mostly Advance
European equity markets largely finished higher on Tuesday, supported by declining oil prices that strengthened expectations of reduced inflationary pressure.
The Stoxx Europe 600, a key regional market indicator, advanced 0.27% to close at 658.32. Germany’s DAX increased 0.31% to 26,347.45, while France’s CAC 40 gained 0.55%, reaching 8,278.59.
Italy’s FTSE MIB climbed 0.69% to 51,755.08, and Spain’s IBEX 35 recorded the strongest gain among the major indexes, rising 0.98% to 19,936.40.
However, Britain’s FTSE 100 moved in the opposite direction, declining 0.29% to finish at 10,751.59.
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