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Inflation surprise pressures Wall Street

An upside surprise in US inflation fuelled expectations of further Federal Reserve (Fed) tightening on Tuesday, leaving Wall Street lower. European shares nevertheless advanced as hopes of an end to US-Iran hostilities pushed oil prices down. Strong results from CoreWeave helped lift chipmakers and most major Asian equity markets on Wednesday, although Hong Kong bucked the positive trend.

  • Data
  • Autore Shane Strowmatt, Senior Investment Writer
  • Tempo di lettura 5 minuto

US Consumer Prices
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US inflation exceeds expectations despite slowing

US consumer prices increased 0.4% month-on-month in October, down from 0.6% in September but above economists’ expectations, according to data released on Tuesday. Core inflation, excluding food and energy, remained at 0.3%, also exceeding forecasts. Annual inflation figures were unavailable because last year’s government shutdown disrupted data collection. US Treasury yields were higher, with the two-year yield at 4.7% and the ten-year yield at 5%, after Fed Governor Christopher Waller signalled support for a half-percentage-point rate increase in December. The US Dollar Index edged up 0.1% to 102.35, while gold gained 0.6% to around USD 4060 per ounce.

US stocks fall on rate concerns

US equities declined on Tuesday, with the S&P 500 losing 0.4% to 7520.93 points and the Dow Jones Industrial Average falling 0.3% to 52,231.89 points. The technology-heavy Nasdaq-100 dropped 0.6% to 27,740.80 points, reversing some gains from the preceding two sessions. Semiconductor shares lost up to 5.5% amid concerns that higher borrowing costs could constrain investment in artificial intelligence (AI) infrastructure, with Nvidia reaching its lowest level since March.

European stocks rise as oil prices fall

European equities extended Monday’s gains on Tuesday, with the EuroStoxx 50 rising 0.7% to 6332.95 points and Switzerland’s SMI advancing 0.6% to 15,037.94 points. Tuesday’s fall in oil prices supported markets after US President Donald Trump indicated that fighting with Iran had largely ended, although energy shares underperformed. Oil prices rebounded on Wednesday, with Brent crude oil futures up 1.1% to USD 92.46 per barrel and West Texas Intermediate (WTI) futures gaining 0.7% to USD 86.62 per barrel. Financial and cyclical stocks led European stock gains Tuesday, while chipmaker Infineon rose almost 1% after forecasting faster growth in its 2026/27 financial year following higher sales and profits.

Asian stocks mixed as chipmakers advance

Asian equities traded unevenly on Wednesday, with South Korea’s KOSPI gaining 2.6% and Japan’s Nikkei 225 rising 1.4%, while Hong Kong’s Hang Seng fell 0.8% and mainland China’s CSI 300 rose 0.5%. Semiconductor shares benefited from AI computing provider CoreWeave’s better-than-expected quarterly earnings and upgraded annual outlook, reinforcing confidence in demand for computing capacity. Chinese technology shares faced concerns about AI valuations, competition and uncertainty surrounding US-China technology cooperation.

Corporate and economic calendar

Corporate news in focus: Quarterly figures from Brenntag, E.ON, RWE, Siemens Energy, and Swiss Life.

Economic data in focus: German consumer inflation data (08:00), European Central Bank President Christine Lagarde speaks (10:45).

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