Markets Sell Off as Hotter-Than-Expected US CPI Data & ASML Earnings Rattle Tech and Metals
The markets sold off today, fueled by the ASML earnings report and hotter-than-expected US inflation data CPI (Consumer Price Index). NVIDIA was down around 3% for the day, with all other big Mag 7 mega-cap (market capitalization) tech stocks down apart from Apple, which was up 0.50%. The S&P 500 fell around 1%, so not quite as much of a pullback as the tech-heavy Nasdaq.
Silver did play out the previous scenario we covered and sold off down to $55 an oz, but the question is: will it continue to sell off and trade back around its old trading range, meaning the silver speculation moment is done and the fun is over? CPI US inflation data was only slightly hotter today, but it's still not good for the whole narrative as far as pressure on central banks to hike rates.
Hot CPI Data Rallies Treasury Yields
U.S. equities plummeted toward their worst session since July following a hotter-than-expected CPI print that upended market expectations for the Federal Reserve. The Nasdaq tumbled 2% as intensifying price pressures and rising fuel costs fueled a spike in the 10-year Treasury yield to 5.26%. Markets are now grappling with a rate-hike dilemma as bond volatility signals a potential news failure for investors.
Geopolitical Tension and Silver Price Volatility
Iranian maritime attacks in the Strait of Hormuz caused multiple vessels to sink, escalating geopolitical risk as Houthi rebels targeted Aramco headquarters. In precious metals, silver crashed below key support to 55.81 USD while energy storage demand prompted upgrades for Albemarle. Russian diesel remains a focus as markets weigh the impact of easing sanctions against high fuel costs.
U.S. chip stocks slumped on AI debt fears and rising yields despite Japan announcing a 21 billion USD investment in GlobalFoundries factories. Corporate sentiment soured further as OpenAI faced lawsuits from eight states over child safety and Netflix announced layoffs of 1,000 staff due to slowing growth.
Chip Stocks Slump Amid AI Concerns
Thursday brings PPI, retail sales, and weekly jobless claims.
