US stocks fall on hot inflation report as Nvidia tumbles again

NEW YORK: Wall Street stocks retreated Tuesday (Nov 10), with scandal-hit Nvidia notably tumbling again, while the dollar gained after a hot US inflation report boosted expectations of Federal Reserve interest rate hikes.

After an up day on several Asian and European bourses, Wall Street indices were under pressure throughout the session following US data showing inflation slowed less than expected in October.

The report came hours after Fed Governor Christopher Waller called for a swift response to inflation, suggesting he could even support a 50-basis-point hike in December.

A second Fed official, Dallas Fed President Lorie Logan, also signalled strong support for swift action to address inflation.

“This is a recognition that inflationary pressures continue to accelerate and the Fed is going to have to be aggressive,” said Joe Zidle, chief market strategist, Cresset Capital Management.

All three major indices ended lower, led by the tech-focused Nasdaq which lost 0.7 per cent.

Equity markets also digested some positive developments.