Deutsche Bank analysts report that the strong US CPI data and hawkish Fed commentary sparked a selloff in US Treasuries and pressured US equities. The S&P 500 slipped as investors priced faster hikes, with Tech and AI-linked names underperforming initially. However, a revenue beat and upgraded guidance from CoreWeave later supported futures, pointing to some recovery in the S&P 500.

Rates shock hits US stocks

“In fact, the 2yr Treasury yield (+17.6bps) saw its biggest daily jump since April 2025, surging to 4.74%, and markets even priced a modest chance of a 50bp Fed hike in December.”

“So it was a very rough day for rates, and that in turn put renewed pressure on equities, with the S&P 500 (-0.38%) pulling back as investors priced in faster hikes.”

“With markets pricing in a more hawkish Fed, that also drove a fresh selloff in US equities, though this did ease a bit as the session went on.”

“Tech stocks underperformed, with a -5.47% drop in Nvidia leading the Nasdaq (-0.74%) and the Mag-7 (-0.83%) to larger declines than the S&P 500 (-0.38%).”

“After the close, we then heard from CoreWeave, which delivered a Q3 revenue beat ($3.66bn vs $3.56bn est.) and upgraded its full-year revenue guidance ($13.0-13.3bn vs $12.9bn est.).”