US consumer prices for October on Tuesday provide clues to the Fed's decision in December. The most important indices start uniformly in the red.
New US inflation data will be in focus on Wall Street on Tuesday: consumer and producer prices will provide further evidence of underlying price pressures before the US Federal Reserve meets in December. Increased inflation is weighing on sentiment: all four major US indices are falling.
The index of the Nasdaq technology exchange fell by 0.7 percent to 25,061 points.
The Nasdaq 100, which tracks the 100 largest non-financial companies with the highest market capitalization, is also down 0.9 percent at 27,667 points.
The broader S&P 500 fell 0.6 percent to 7,509 points.
The Dow Jones index of standard stocks lost 0.3 percent and was trading at 52,251 points.
Price pressure in the USA increased more in October than experts expected. Consumer prices rose 0.4 percent from the previous month, while economists had expected 0.3 percent. Core inflation excluding energy and food was also 0.3 percent, above the forecast of 0.2 percent.
A comparison with the same month last year is not possible this time because no inflation data was collected in October 2025 due to the government shutdown. The publication is considered the last important inflation indicator before the US Federal Reserve's next interest rate decision. “There is still a lot of pressure in the inflation pipeline,” says Bastian Hepperle from Bethmann Hal Bank.
The markets are now fully pricing in higher interest rates in December. 90 percent of market participants expect the Fed to raise interest rates by 0.25 percentage points to the range of 4.0 to 4.25 percent. Around ten percent now expect an even larger interest rate hike of 0.5 percentage points.
Fed Governor Christopher Waller even brought up a 50 basis point increase. In addition to stubborn inflation, the robust labor market also supports expectations of rising interest rates: Significantly more jobs were created in October than forecast.
The yield on the two-year US bond - which is considered an important indicator of the central bankers' interest rates - then rose by seven basis points to 4.69 percent. The interest rate on ten-year papers rose from 4.89 to 4.96 percent.
The price of oil fell below $90 a barrel on Tuesday for the first time since August. The North Sea Brent variety for delivery in January temporarily lost up to 3.1 percent, after having already lost almost six percent the day before. Traders are increasingly betting that the war in the Middle East will end soon.
US President Donald Trump is under pressure to end the conflict after the Republicans' defeat in the midterm elections. He said further attacks on Iran were not necessary. This means that the oil market has turned significantly in the current month. At the end of October, prices had reached a six-month high.
Meanwhile, AI provider Anthropic is aiming for a total valuation of up to $1 trillion with its chatbot Claude in its hotly anticipated US IPO. Initially, shares will be offered at a price of 70 to 78 dollars (62.40 to 69.53 euros), as the company announced in a filing with the US Securities and Exchange Commission (SEC).
Anthropic itself wants to sell up to 801.4 million shares, the previous owner wants to sell 23.6 million shares. Company boss Dario Amodei is targeting gross revenue of up to 64.4 billion dollars (57.6 billion euros) - slightly less than the space and technology company SpaceX at its record debut in June. Elon Musk's group had raised $75 billion with its basic offer, including $86.2 billion including over-allotments.
At the high end of the price range, Anthropic would be valued at around $1 trillion based on total shares outstanding.
There is a lot at stake for the AI sector. A successful IPO could support sentiment, while a failure would weigh on overall AI trading, said Olivier David of Vega Investment Solutions.
Blackstone: The US investment group Blackstone is taking over a 15.57 percent stake in the Indian lender IIFL Finance for around 532 million dollars (around 460 million euros). The capital injection is intended to increase the financier's equity ratio to around 30 percent. The US investor's shares fell by 0.6 percent.
ExxonMobil: The oil company formalized negotiations with Venezuela to operate one or more oil fields. Previously, CEO Darren Woods had described the country as “uninvestable” given its conditions at the time. The shares are falling by around two percent.
Skydance: A profit warning and a billion-dollar savings plan at the US media group Skydance have unsettled investors. Skydance warned on Monday evening that slow-performing Warner Bros films would hit fourth-quarter profits by up to $200 million. The shares are falling by around nine percent.
