Stocks Retreat as Chipmakers Sink and Bond Yields Rise

The S&P 500 Index ($SPX) (SPY) is down -0.93% today, the Dow Jones Industrial Average ($DOWI) (DIA) is down -0.17%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -2.06%.  December E-mini S&P futures (ESZ26) are down -0.92%, and December E-mini Nasdaq futures (NQZ26) are down -2.00%.

US stock indices are falling today as another selloff in chipmakers and AI-infrastructure stocks is weighing on the broader market.  Also, hawkish Fed comments today lifted bond yields and undercut stocks after Chicago Fed President Austan Goolsbee said the Fed "has work to do" on inflation, as the AI build-out is heating up the economy on top of energy costs, and after Boston Fed President Susan Collins said that tighter Fed monetary policy may be needed to cool prices.  The 10-year T-note yield rose to a 4-week high of 5.17% today.

Stocks found temporary support today after US Oct producer prices rose less than expected, easing inflation concerns.  However, despite the weaker-than-expected rise, Oct PPI rose +6.5% y/y, the fastest pace of increase in nearly 4 years. 

US Oct PPI final demand rose +0.3% m/m and +6.5% y/y, weaker than expectations of +0.4% m/m and +6.6% y/y.  Oct PPI ex-food and energy rose +0.3% m/m and +5.0% y/y, right on expectations.

Bitcoin (^BTCUSD) is down more than -4% today and fell to a 2.75-month low as concerns about inflation and higher interest rates are weighing on cryptocurrencies. Conversely, crude oil prices are under pressure today after the IEA also said global oil markets will swing to a surplus for the first time since the start of the Iran war.

Dec WTI crude oil prices (CLZ26) erased overnight losses and are moving higher today on concerns over escalation of the US-Iran conflict after US Central Command said it shot down two attack drones launched by Iran’s IRGC toward a US base in Bahrain.   Supply threats to crude oil remain due to flare-ups in the Middle East, with continued attacks on commercial shipping and disruption to the region's energy infrastructure.  According to consultant Verisk Maplecroft, there were 36 confirmed attacks on commercial ships in the Persian Gulf, the Strait of Hormuz, and the Gulf of Oman in October, the highest total since the Iran war began.

Crude oil prices initially moved lower today after the International Energy Agency (IEA) cut its 2026 global crude oil demand forecast to 102.29 million bpd, down -90,000 bpd from last month's forecast.  The IEA also said global oil markets will swing to a surplus for the first time since the start of the Iran war, boosting 2026 global oil supply estimates by 920,000 bpd, and said global oil markets will be in surplus by 2 million bpd this quarter.

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, 451 of the S&P 500 companies have reported results, with 84% beating estimates.

Overseas stock markets are mixed today.  The Euro Stoxx 50 is down -0.31%.  China’s Shanghai Composite closed down -0.59%.  Japan's Nikkei-225 Stock Average rose to a 1-week high and closed up +0.53%.

Interest Rates

December 10-year T-notes (ZNZ6) are down -5 ticks today.  The 10-year T-note yield is up +0.6 bp to 5.133%.  Dec T-notes slid to a 3-week low today, and the 10-year T-note yield climbed to a 4-week high of 5.172%.  T-notes are under pressure from higher inflation expectations after the 10-year breakeven inflation rate rose to a 1-week high of 2.270% today.  T-notes are also under pressure from hawkish Fed comments today after Chicago Fed President Austan Goolsbee said the Fed "has work to do" on inflation, and Boston Fed President Susan Collins said tighter Fed monetary policy may be needed to cool prices. 

T-notes recovered from their worst level after US Oct PPI rose less than expected, easing inflation fears.  Also, today’s stock market decline has boosted some safe-haven demand for T-notes. 

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 climbed to a 3-week high of 3.390% and is up +1.9 bp to 3.366%.  The 10-year UK gilt yield rose to a 2-week high of 5.349% and is up +2.0 bp to 5.319%.

Eurozone Q3 GDP was left unrevised at +0.4% q/q and +1.3% y/y, as expected.

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

Chipmakers and AI-infrastructure stocks are sliding today after the 10-year T-note yield rose to a 4-week high. The iShares Semiconductor ETF (SOXX) is down more than -4%.  Advanced Micro Devices (AMD) is down more than -10% to lead losers in the S&P 500, and Sandisk (SNDK) is down more than -9%.  Also, Marvell Technology (MRVL) is down more than -8%, and ARM Holdings Plc (ARM) and Western Digital (WDC) are down more than -7%.  In addition, Broadcom (AVGO), Applied Materials (AMAT), and Intel (INTC) are down more than -6%, and Lam Research (LRCX), KLA Corp (KLAC), and Seagate Technology Holdings Plc (STX) are down more than -5%.  Finally, Micron Technology (MU), Qualcomm (QCOM), Microchip Technology (MCHP), Texas Instruments (TXN), and NXP Semiconductors NV (NXPI) are down more than -4%. 

AI cloud-computing stocks are slumping today.  Nebius Group NV (NBIS) is down more than -12% to lead losers in the Nasdaq 100, and CoreWeave (CRWV) is down more than -10%.  Also, Applied Digital (APLD) is down more than -9%, and Lumentum Holdings (LITE) is down more than -8%.  In addition, Arista Networks (ANET) is down more than -4%, and Oracle (ORCL) is down more than -2%.

Cryptocurrency-exposed stocks are under pressure today, with Bitcoin (^BTCUSD) down more than -4% at a 2.75-month low.  Iren Ltd (IREN) is down more than -9%, and Galaxy Digital Holdings (GLXY) is down more than -5%. Also, MARA Holdings (MARA), BitMine Immersion Technologies (BMNR), Robinhood Markets (HOOD), Bullish (BLSH), and Riot Platforms (RIOT) are down more than -4%.  In addition, Strategy (MSTR) is down more than -3%, and Coinbase Global (COIN) is down more than -2%. 

Cisco Systems (CSCO) is down more than -5% to lead losers in the Dow Jones Industrials after reporting a +21% increase in product orders in fiscal Q1, below expectations and a slowdown from the previous quarter.

National Health Investors (NHI) is down more than -2% after Bank of America Global Research double-downgraded the stock to underperform from buy.

Floor & Decor Holdings (FND) is down more than -2% after Evercore ISI downgraded the stock to underperform from inline with a price target of $45.

Modine Manufacturing (MOD) is up more than +28% on reports that Samsung Electronics is in talks to acquire the company.

Cerebras Systems (CBRS) is up more than +11% after forecasting full-year core revenue of $940 million to $960 million, well above the consensus of $887.4 million.

Nubank Holdings Ltd. (NU) is up more than +6% after reporting Q3 net income of $1.09 billion, better than the consensus of $1.07 billion.

Steris Plc (STE) is up more than +4% after Jeffries upgraded the stock to buy from hold with a price target of $302.

Earnings Reports (11/13/2026)

None.

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.