FX.co ★ US Futures Decline After Hot CPI

US equity futures declined on Tuesday as fresh evidence of firm inflation emerged and investors evaluated details of the Anthropic IPO. S&P 500 futures slipped 0.6%, Nasdaq 100 futures dropped 1.2%, while Dow futures were little changed.

Both headline and core US CPI readings for October came in above expectations, reinforcing market conviction that the Federal Reserve will raise rates next month and boosting the perceived likelihood of multiple additional hikes next year. Treasury yields rebounded in response, putting renewed pressure on highly leveraged AI infrastructure and services companies.

Shares of Micron, Marvell, and SanDisk each fell more than 3% in premarket trading, a move exacerbated by steep losses in SoftBank after substantial data-center write-downs. In tandem, GE Vernova sank nearly 9%. Nvidia extended Monday’s sharp decline as concerns around CEO Jensen Huang’s affair raised questions about the durability of his leadership.