Wall Street Gives Back Part of Monday's Rally as Hot CPI Lifts Yields to 5% and Nvidia Falls, While Asian Chips Rebound

Tuesday reversed some of it. CNBC reported that the S&P 500 fell 0.38 percent to 7,520.93, the Dow lost 157.86 points, or 0.30 percent, to 52,231.89, and the Nasdaq composite dropped 0.74 percent to 25,065.87. The 10-year yield jumped above 5 percent, to about 5.004 percent, after the inflation data and then slipped just below that level. Waller, the Fed governor, said a December rate rise looks likely and floated a half-point move.

Why did Nvidia fall again?

Nvidia was the biggest drag. Its shares fell 5.47 percent on Tuesday after dropping more than 4 percent on Monday, and its market value briefly dipped below $4 trillion before closing above it, CNBC reported. Investors are weighing an independent board investigation involving chief executive Jensen Huang and a reported relationship with an executive at a customer, allegations that have not been proven. We are not covering the inquiry itself in this market report. Dan Ives of Yorkville Ives estimated about a 15 percent chance that Huang is removed, a view CNBC attributes to him.

Elsewhere, CNBC noted CoreWeave reported third-quarter revenue up 168 percent, beating estimates, and that neocloud stocks Nebius and Iren rose after hours. The same report said the bond market is closed on Wednesday for Veterans Day, which can thin trading.

What are Asian markets doing on Wednesday?

A rebound in chips. In the investingLive midday report, Japan's Nikkei 225 was up about 0.8 percent near 60,940, its third straight gain, the Kospi was up about 1.7 percent near 5,330, and the tech-heavy Kosdaq jumped about 5 percent. Samsung Electronics rose about 2.4 percent and SK Hynix around 3 percent, while SoftBank fell about 3 percent after a quarterly net loss of roughly 1.1 trillion yen. Hong Kong's Hang Seng fell about 0.9 percent and the Shanghai Composite about 0.2 percent. Nasdaq 100 futures were up about 1 percent and S&P 500 futures about 0.5 percent.

Traders cited a Reuters Tankan showing Japanese manufacturers' confidence at its highest in more than five years, and the article said attention now turns to Nvidia's results next week. For the US open, the questions are whether the chip rebound holds against a 10-year yield sitting at 5 percent, and whether the December Fed meeting starts to look like a half-point decision instead of a quarter.