ASX 200 Live Today - Wednesday, 11th November

Welcome to our live ASX coverage for Wednesday, November 11. Expect a high volume of posts pre-market and more periodic updates throughout the day. We'll be wrapping the blog up around 2:00 pm AEST.

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Nvidia slides 5.5% as board hires Wachtell for Huang probe

[8:41 am] Nvidia fell for a second session as investors weighed whether the scandal around CEO Jensen Huang could force him out.

• Nvidia fell 5.5% to US$168.89 after a 4.3% drop on Monday, briefly slipping below a US$4tn market cap

• The board hired Wachtell, Lipton, Rosen & Katz to investigate whether company secrets or national security were compromised

• The Information reported at least US$7.5bn of Nvidia hardware was shipped to Chinese firms via a network linked to Alice Huang since 2023

• A Yahoo Finance basket of 62 chip stocks has lost about US$5tn in value since 6 October, roughly a quarter of its worth

• Goldman Sachs called chip stocks oversold and named Nvidia, Broadcom and AMD as top picks, while Bernstein sees a buying opportunity if Huang stays

Fed’s Waller opens door to half-point hike in December

[8:40 am] Federal Reserve officials lined up behind further tightening, with Governor Christopher Waller floating a 50 basis point move hours before CPI data met his threshold for one.

• Waller said he was leaning toward a 25 bp hike in December, but a 50 bp move should be considered if core CPI came in around 0.3% or higher

• He warned a smaller hike in that scenario would put the Fed’s credibility at risk

• Dallas Fed President Lorie Logan backed at least two more quarter-point hikes and said the Fed may need to move at a faster pace

• Governor Michelle Bowman also signalled support for a December hike, while Kansas City Fed’s Jeff Schmid described policy as fairly accommodative

• Markets fully price a 25 bp hike in December, with odds of a 50 bp move rising to about 13.6% from near zero

Two-year Treasury yields jump the most since April 2025

[8:40 am] Short-dated Treasuries sold off sharply as hot inflation and hawkish Fed commentary revived fears the central bank is moving too slowly.

• The two-year yield jumped 17 bps to 4.73%, the biggest rise since the April 2025 tariff rollout

• The 10-year yield climbed as much as 14bp to back above 5%, and a 10-year auction cleared at 5.02%, above where it had been trading

• Futures now price about three quarter-point hikes by June

• T. Rowe Price’s Arif Husain says yields won’t truly peak until there’s a recession and warned the Fed could overtighten

• Husain also flagged the risk of the yield curve bear-flattening and inverting in the relatively near future

S&P 500 slips as hot inflation and Nvidia sell-off weigh

[8:38 am] US stocks gave back part of Monday’s rally after hotter-than-expected inflation data locked in bets on a December rate hike.

• The S&P 500 fell 0.38% to 7,520, the Nasdaq lost 0.74% to 25,065 and the Dow shed 0.30% to 52,237

• Monday’s session saw the S&P 500 rise 2.35%, its best day since April, after a 4.4% plunge on 5 November

• Nvidia (-5.5%) was the biggest drag on the major indices, while the equal-weighted S&P 500 was down just 0.03%

• Gold fell more than 2% to just above US$4,000 an ounce as the US dollar firmed

• CoreWeave beat on revenue and lifted guidance after the bell, easing concerns about an AI slowdown

US inflation runs hotter than expected in October

[8:38 am] Core inflation topped forecasts for a third straight month in the last CPI print before the Fed’s 8–9 December meeting.

• Headline CPI rose 0.4% month-on-month vs 0.3% expected, easing from 0.6% in September

• Core CPI rose 0.3% vs 0.2% expected, matching September

• No annual figure was published because the 2025 shutdown disrupted data collection, but economists estimate core would have been about 2.8%, the highest since May

• Core CPI rose 3.75% on a three-month annualised basis, the fastest pace in more than two years

• Shelter rose 0.3% and made up more than 30% of the increase, while grocery prices rose the most since April and electricity jumped 0.9%

• Bloomberg Economics noted core goods inflation eased on lower car prices and AI-exposed electronics moderated, suggesting AI-driven inflation has peaked

Good morning!

[8:27 am] ASX 200 futures are down 38 pts (-0.41%). Here's what happened overnight:

• Wall Street gave back part of Monday's rally after hot inflation data, with Nvidia dragging the major averages lower a day after the S&P 500's best session since April

  • S&P 500 (-0.38%), off session lows of (-1.05%)

  • Equal-weight S&P 500 (-0.03%) as banks, retailers, healthcare, staples and energy stocks still managed to eke out some gains

  • Nasdaq (-0.74%), Dow (-0.30%) and Russell 2000 (-0.68%)

• Core CPI beat for a third straight month, keeping the Fed on track to hike next month, while short-dated Treasuries headed for their worst day since April 2025

• Brent briefly slipped below US$90 for the first time since August as Trump's comments fed hopes for an end to the Iran war