Hot CPI Pushes 10-Year Yield to 5%, Nvidia Sinks 6%: Stock Market Today
Hotter October CPI pushed the 10-year Treasury yield to 5% and the 2-year up 17 basis points, while Nvidia's slide weighed on the Nasdaq 100.
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Hotter October CPI pushed the 10-year Treasury yield to 5% and the 2-year up 17 basis points, while Nvidia's slide weighed on the Nasdaq 100.
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Microsoft reported strong Q1 fiscal 2027 results with revenues up 19% to $92.3B and Azure revenues surging 48% to $33.2B. However, the company faces headwinds from massive capital expenditures exceeding $50B in Q2, declining cloud gross margins, and weakness in consumer businesses. With a P/E of 30.22X above industry average and intensifying competition, analysts recommend existing investors hold while new investors await better entry points.
Rackspace and Together AI have entered a multiyear agreement to deploy NVIDIA GB300 NVL72 infrastructure to support enterprise inference workloads.
Nvidia is expected to report Q3 2026 earnings of $2.49 per share with revenues of $108.99 billion, representing 91.5% and 91.2% year-over-year growth respectively. However, the company presents a mixed earnings-beat candidate with a negative Earnings ESP of -0.55%, despite carrying a Zacks Rank #2 (Buy) rating. While Nvidia has beaten consensus estimates in the last four quarters, recent analyst revisions suggest caution ahead of the November 17 earnings release.
Nvidia stock has fallen 30% from its all-time high due to a combination of broader tech sell-off concerns about AI regulation and a scandal involving CEO Jensen Huang's alleged affair with a Chinese intelligence asset. However, historical analysis shows Nvidia has recovered from similar 20%+ drops multiple times over the past five years, each time reaching much higher levels. Despite current headwinds, Nvidia remains central to AI development with strong demand from hyperscalers and expected 90% sales growth this year.