US stock market close: Hot CPI leads to a selloff

US equity futures were flat ahead of the CPI report but plunged afterwards. Fed Governor Waller set the stage for a drop when he said a reading of +0.3% on core inflation would make him consider at 50 basis point hike in December.So when CPI was +0.3% with some caveats that could have made it higher (like a -1.2% m/m drop in used car prices) that sent a shudder through the market. US 2-year yields jump 18 bps and 10s rose above above 5%. In turn, stock markets were under pressure.Notably, the selling was mostly contained to tech as the AI angst continues. Nvidia was down another 6% as politicians target Nvidia's chip sales to China in light of the honeypot revelation. The whole bit feels a bit scripted but that's the name of the game in Washington.  There were some decent pockets of strength and breadth was relatively balanced. Notably, there was a nice pop when it was revealed that Anthropic already has a full order book for next week's $60 billion IPO.There was a real ebb and flow to the day but the bulls gathered themselves late for a decent close that erased much of the pain.Closing changes:S&P 500 -0.4%Nasdaq Comp -0.7%DJIA -0.3%Russell 2000 -0.8%TSX Comp -0.8%Note that US stock markets are open on Wednesday for Veteran's Day but Canadian markets and US bond markets are closed. The lack of activity from US fixed income should keep a lid on volatiltiy but we're waiting for earnings from neocloud CoreWeave after the bell so that will be a big driver. This article was written by Adam Button at investinglive.com.