Nvidia Falls 6.3% as U.S. Inflation Hits 0.4% and Treasury Yield Tops 5%
Key Facts
Nvidia shares fell 6.3% in the November 10 session, making it the biggest drag on the S&P 500, as data showed U.S. consumer prices rose 0.4% in October. The Bureau of Labor Statistics said the index rose after a 0.6% increase in September, while the Associated Press described the reading as worse than economists expected. Micron Technology shares fell 3.6% after moving between gains and losses earlier in the morning. Other companies tied to AI infrastructure, including GE Vernova and CoreWeave, also declined. The 10-year U.S. Treasury yield rose to 5.01% from 4.88% late Monday as traders repriced the chances of an interest-rate increase.
The monthly headline inflation rate eased from 0.6% in September to 0.4% in October, but the core measure did not show a similar slowdown. The all-items index excluding food and energy rose 0.3% in October, the same monthly increase recorded in September and August, according to the Bureau of Labor Statistics. The Associated Press said this core measure had been a concern for Federal Reserve Governor Christopher Waller. Its persistence underscores that the slower pace in the headline index alone does not describe the path of price pressures. The shelter index rose 0.3% in October, after a 0.4% increase in September.
Price components posted mixed increases during the month, with the energy index rising 0.7% in October after a 5.2% jump in September. The gasoline index increased 1.0%, compared with a 9.1% rise in the previous month, slowing the pace of gains in that component. On the food side, the index for food purchased for home consumption rose 0.4%, while the index for food away from home increased 0.5%. These figures provide context for the gap between the headline and core readings, as the core measure excludes food and energy. The rise in yields alongside the inflation data refocused the market on the path of interest rates.
The session’s moves extended beyond semiconductor stocks, with Brent crude falling 0.8% to $91.81 a barrel. The oil benchmark had retreated from a level above $112 in early November amid uncertainty over developments in the war with Iran, according to the Associated Press. The 10-year Treasury yield, after climbing to 5.01% on November 10, remained below the level it breached in early October, when it topped 5.30%. The agency linked that earlier level to concerns about elevated inflation, higher interest rates and U.S. government debt. Comparing the two yield levels shows volatile moves in the bond market in recent weeks as investors reassessed inflation and interest-rate risks.
Nvidia faced company- and sector-specific pressures alongside the interest-rate backdrop, with the Associated Press not attributing the stock’s decline to a single cause. The agency said Democrats’ gains in state legislatures the previous week had raised concerns about potential restrictions on building AI data centers. It added that concerns about inflated valuations of AI stocks had already been present. Separately, the agency reported that Nvidia’s board had opened an investigation involving Chief Executive Jensen Huang. The company said the board had expressed confidence in Huang and added that it “saw no reason to believe there had been a breach of company secrets or national security.”
The inflation data carry a statistical caveat concerning year-over-year comparisons for some series. The Bureau of Labor Statistics said it could not publish 12-month changes for October 2026 for indexes without October 2025 data. The agency attributed this to the 2025 funding lapse, which prevented those data from being available. This limitation affects publication of the annual rate of change for those specific indexes and does not change the monthly figures the agency reported for October. The November Consumer Price Index report is scheduled for release on December 10, 2026, at 8:30 a.m. Eastern Time.