US Stock Market Move | October CPI Exceeds Expectations, Raising Rate Hike Bets; Nasdaq Futures Plunge 1.3%; Most Star Tech Stocks Fall in Pre-Market Trading

On Tuesday, following the release of US October inflation data, Nasdaq 100 futures plunged in a short burst and are now down 1.3%. Most star tech stocks fell in pre-market trading, with Intel Corporation (INTC.US) down over 4%, Spacex (SPCX.US) down over 3%, and Tesla, Inc. (TSLA.US), Advanced Micro Devices (AMD.US), NVIDIA Corporation (NVDA.US), and Broadcom Inc. (AVGO.US) down over 2%. On the news front, the US October Consumer Price Index (CPI) rose 0.4% month-over-month, versus an estimate of 0.3% and a previous reading of 0.6%. The US October core Consumer Price Index (CPI) rose 0.3% month-over-month, versus an estimate of 0.2% and a previous reading of 0.3%. Following the release of the US October inflation data, traders' expectations for a Federal Reserve rate hike in December remained at 100%. Traders increased their bets that the Federal Reserve will raise rates at least twice by mid-2027. Federal Reserve Governor Waller said in his latest remarks: "The Federal Reserve will need to tighten policy further. US inflation is too high, and the September inflation data was terrible. I am particularly concerned that price increases are becoming broad-based. Even if October CPI improves from September, I will still support a 25 basis point rate hike in December. If October core CPI rises around 0.3% or more, the Federal Reserve may need to raise rates by 50 basis points in December."