Stocks Retreat as Price Pressures Push Bond Yields Higher

The S&P 500 Index ($SPX) (SPY) is down -0.67% today, the Dow Jones Industrial Average ($DOWI) (DIA) is down -0.60%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.72%.  December E-mini S&P futures (ESZ26) are down -0.71%, and December E-mini Nasdaq futures (NQZ26) are down -0.77%.

US stock indices are falling today as higher bond yields are weighing on stocks after Fed Governor Waller said he backed a Fed rate hike next month. Stocks and bonds are also falling today on signs of price pressures after US October consumer prices rose more than expected.  The 10-year T-note yield is up +11 bp to 4.99%, and the chance of a Fed rate hike at next month’s FOMC meeting rose to 100% from 82% on Monday.

The overall market has support today after WTI crude oil prices fell more than -1% to a 2.5-month low, easing inflation expectations and boosting market sentiment. Also, chipmakers recovered from their worst levels today after Advanced Micro Devices, Broadcom, Nvidia, and others announced a $26 billion investment in Anthropic.

US Oct CPI rose +0.4% m/m, stronger than expectations of +0.3% m/m. Oct core CPI rose +0.3% m/m, stronger than expectations of +0.2% m/m.  The Bureau of Labor Statistics did not publish year-over-year data for 2026 CPI because it had no October 2025 data due to the federal government shutdown.

Hawkish comments today from Fed Governor Christopher Waller weighed on stocks and bonds when he said he supports a Fed rate hike in December and warned that if inflation continues to accelerate, he will support a half-percentage-point increase to protect the Fed's credibility.

Dec WTI crude oil prices (CLZ26) are down more than -1% today at a 2.5-month low on Iran war de-escalation optimism. Qatar's Foreign Ministry said there have been "positive responses" from the US and Iran to mediation efforts, which are ongoing.

However, Iran continues to assault ships going through the Strait of Hormuz, and the US has twice launched limited strikes on Iran's Qeshm Island since early last week.  Also, risks to Middle Eastern energy infrastructure persist after Saudi Arabia's East-West pipeline was targeted Monday in the Medina region by Houthi Rebels. 

Stocks are supported by the prospect of solid quarterly earnings. According to data compiled by Bloomberg Intelligence, Q3 S&P 500 earnings are expected to climb by +31% from a year earlier, up from a July estimate of 22%.  As of today, 447 of the S&P 500 companies have reported results, with 84% beating estimates.

Overseas stock markets are higher today.  The Euro Stoxx 50 climbed to a 2-month high and is up +1.05%. China’s Shanghai Composite closed up +0.08%.  Japan's Nikkei-225 Stock Average closed up +2.87%.

Interest Rates

December 10-year T-notes (ZNZ6) are down -28 ticks today.  The 10-year T-note yield is up +10.6 bp to 4.988%.  Dec T-notes fell to a 1.5-week low today, and the 10-year Y-note yield rose to a 1.5-week high of 4.992%.  T-note prices slumped today after Fed Governor Waller said he favored a 25 bp Fed rate hike at next month’s FOMC meeting and was open to a larger hike if inflation pressures persist.  T-note prices extended their losses today after US Oct CPI rose more than expected. Supply pressures are also weighing on T-notes as the Treasury will auction $42 billion of 10-year T-notes later today.  On the positive side, WTI crude oil is down more than -1% today at a 2.5-month low, easing inflation expectations.

The markets are now pricing in a 100% chance of a +25 bp rate hike at the FOMC’s next meeting on December 8-9. 

European government bond yields are moving higher today.  The 10-year German bund yield is up +3.2 bp to 3.296%.  The 10-year UK gilt yield is up +6.7 bp to 5.197%.

ECB Chief Economist Philip Lane said, "If the information set we have in December is exactly the same as the information set today, then I think it would be prudent indeed to hike" interest rates. 

ECB Governing Council member Martins Kazaks said a "hawkish edge" is appropriate for monetary policy, and "so far, it seems that some further tightening from today's perspective would be warranted."

The markets are now pricing in a 90% chance of a +25 bp rate hike at the ECB’s next policy meeting on December 17. 

US Stock Movers

Most chipmakers and AI-infrastructure stocks are under pressure today from higher bond yields.  The iShares Semiconductor ETF (SOXX) is down more than -1%.  ARM Holdings Plc (ARM) and Sandisk (SNDK) are down more than -4%, and Western Digital (WDC) and Micron Technology (MU) are down more than -3%.  Also, Intel (INTC) and Seagate Technology Holdings Plc (STX) are down more than -2%, and  Analog Devices (ADI), Marvell Technology (MRVL), Microchip Technology (MCHP), and Qualcomm (QCOM) are down more than -1%.

Home builders and building suppliers are falling today after the 10-year T-note yield jumped to a 1.5-week high, raising mortgage rates and undercutting housing demand.  Lennar (LEN) is down more than -5%, and Builders Firstsource (BLDR) and DR Horton (DHI) are down more than -4%.  Also, Pulte Group (PHM), KB Home (KBH), and Toll Brothers (TOL) are down more than -3%. 

Cryptocurrency-exposed stocks are sliding today, with Bitcoin (^BTCUSD) down more than -2% at a 2.5-month low.  BitMine Immersion Technologies (BMNR) is down more than -5%, and Circle Internet Group (CRCL), Coinbase Global (COIN), and Strategy (MSTR) are down more than -4%.  Also, Bullish (BLSH) and Iren Ltd (IREN) are down more than -3%, and Galaxy Digital Holdings (GLXY) and Robinhood Markets (HOOD) are down more than -2%. 

Groupon (GRPN) is down more than -28% after cutting full-year sales guidance to $500 million to $503 million from a previous estimate of $513 million to $523 million, weaker than the consensus of $518.63 million.

On Holding (ONON) is down more than -7% after reporting weaker-than-expected Q3 direct-to-consumer net sales.

GE Vernova (GEV) is down more than -6% after Softbank Group wrote down a -$3.7 billion loss over its AI data center projects in the US.

Nvidia (NVDA) is down more than -5% today to lead losers in the Dow Jones Industrials and the Nasdaq 100 and added to Monday’s -4% decline after the company’s board launched an investigation into CEO Huang, following his admission of an affair with a woman identified as a suspected Chinese spy.

Casella Waste Systems (CWST) is down more than -2% after reporting Q3 revenue of $559.2 million, below the consensus of $563.3 million.

AAON Inc. (AAON) is up more than +24% after reporting preliminary Q3 net sales of $707.4 million, well above the consensus of $603.4 million.

Take-Two Interactive Software (TTWO) is up more than +6% to lead gainers in the S&P 500 and Nasdaq 100 after forecasting Q3 net bookings of $3.35 billion to $3.50 billion, the midpoint above the consensus of $3.37 billion.

Advanced Micro Devices (AMD) is up more than +3% and Broadcom (AVGO) is up more than +2% after announcing investments in Anthropic.

Sanmina (SANM) is up more than +4% after reporting Q4 net sales of $3.86 billion, better than the consensus of $3.48 billion, and forecasting 2027 revenue of $17.5 billion to $19.5 billion, well above the consensus of $16.6 billion.

Onto Innovation (ONTO) is up more than +2% after reporting Q3 adjusted EPS of $2.44, above the consensus of $2.30, and forecasting Q4 adjusted EPS of $2.59 t $2.79, stronger than the consensus of $2.46. 

Venture Global (VG) is up more than +2% after reporting Q3 revenue of $4.76 billion, above the consensus of $4.60 billion.

Earnings Reports (11/10/2026)

CoreWeave Inc (CRWV), On Holding AG (ONON), TransDigm Group Inc (TDG).

On the date of publication, Rich Asplund did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.