The S&P 500 fell 0.38% as a 17.6bps surge in 2-year Treasury yields to 4.74% triggered a broader equity selloff, though CoreWeave's strong Q3 results and upgraded guidance offered a late-session recovery signal.
After the close, CoreWeave delivered a Q3 revenue beat of $3.66bn versus $3.56bn expected and upgraded full-year revenue guidance to $13.0-13.3bn versus $12.9bn estimated. Hard beats plus raised guidance typically lift the stock, and the results already supported S&P futures despite the hostile rates backdrop.
Strong CPI data and hawkish Fed commentary drove the 2-year yield up 17.6bps to 4.74%, its biggest daily jump since April 2025, with markets even pricing a modest chance of a 50bp December hike. Momentum points to yields staying elevated, though further data could shift pricing either way.
Strong US CPI data and hawkish Fed commentary drove the 2yr yield up 17.6bps to 4.74% and pushed the S&P 500 down 0.38%, with markets pricing even a modest chance of a 50bp hike in December. Higher yields weigh on equity valuations, though CoreWeave's post-close beat and raised guidance point to some recovery in futures.
Tech underperformed on the rates shock, with the Nasdaq down 0.74% versus the S&P 500's 0.38% decline, led by a -5.47% drop in Nvidia. Higher yields and expectations of faster Fed hikes hit growth and AI-linked names hardest, though CoreWeave's results offered some late support.
Nvidia dropped -5.47% as the rates shock and hawkish Fed pricing hit AI-linked tech names hardest, leading the Nasdaq lower. As the highest-profile AI exposure, it remains sensitive to further yield rises, though CoreWeave's raised AI-related guidance may lend some support.
US equities faced pressure as strong CPI data and hawkish Fed commentary drove the 2-year Treasury yield up 17.6bps to 4.74%, the largest daily increase since April 2025. The S&P 500 fell 0.38% while the tech-heavy Nasdaq declined 0.74%, led by a 5.47% drop in Nvidia. Despite the broader selloff, CoreWeave provided late support to futures after reporting a Q3 revenue beat and raising full-year guidance.
CoreWeave reported Q3 revenue of $3.66bn versus $3.56bn expected and raised its full-year revenue guidance to $13.0-13.3bn versus a $12.9bn estimate.
Strong US CPI data and hawkish Fed commentary led markets to price faster hikes, sending the 2-year yield up 17.6bps to 4.74%, its biggest daily jump since April 2025.
Hot US CPI data and hawkish Fed commentary sent Treasury yields sharply higher, leading investors to price in faster Fed hikes, which pressured equities.
CoreWeave's post-close revenue beat and upgraded full-year revenue guidance supported S&P futures, pointing to some recovery.
Tech and AI-linked names underperformed as surging yields and expectations of faster Fed hikes weighed most on growth stocks, with Nvidia down 5.47% leading the Nasdaq's 0.74% decline.
Nvidia fell 5.47% as hot CPI data and hawkish Fed commentary drove a Treasury selloff, hitting tech and AI-linked names hardest.