Take a look at this…  

It’s Terafab — Elon Musk’s new AI chip factory in Texas.

You see, Elon needs more AI chips than the whole industry can make today…

So he decided to mass produce his own.

But there’s a catch…

Chips alone won’t cut it.

Because AI can’t scale without a radical “light-speed” device…

Not even Elon’s.

Yet most Americans have never heard of it.

Former Wall Street insider Jason Bodner — the same man who called Nvidia at $4.50 split-adjusted — says this device is about to launch a whole new wave of AI winners…

And to prove it, he’s giving away his #1 stock involved with it — for free.

Click here to learn more.

Wall Street's biggest rally since April faced a sharp test Tuesday. Just 1 day after the Dow surged 1,104 points, fresh data showed that U.S. prices rose more than expected. Consumer prices climbed 0.4% in October, above forecasts of 0.3%. Core prices rose 0.3%, also beating forecasts.

Stocks fell in early trading. The Nasdaq led the losses as Treasury yields climbed toward 5%. The 10-year yield reached nearly 4.97%, up from about 4.88% Monday.

The report raised fears that the Fed may need to raise rates again, even as the economy keeps adding jobs. Now Wall Street faces a major test. Can strong company profits keep stocks rising while inflation and loan costs remain high?

Tuesday, November 10: Inflation Report and Early Trading

Monday's Confirmed Close:

Three forces shaped Tuesday's market. Inflation came in above forecasts, raising fears that the Fed may need to increase rates again. Food, energy, and housing costs all rose, showing that families still face higher bills.

Bond yields climbed as traders placed greater odds on a December rate hike. The 10-year Treasury yield rose toward 5%, making bonds more appealing and raising the cost of loans for homes and businesses.

Oil prices moved lower as hopes grew for progress in talks with Iran. Cheaper crude could help ease future inflation, but October's price report showed that households had not yet seen enough relief.

The result was a sharp change from Monday's rally. Investors had returned to stocks in hopes of lower fuel costs and strong company profits. Tuesday's inflation data gave them a reason to be more careful.

October's inflation report gave Wall Street mixed news. Consumer prices rose 0.4%, down from 0.6% in September. That was a step in the right direction, but it still beat forecasts of 0.3%. Core prices rose 0.3% for a 3rd straight month.

Housing costs climbed 0.3%, while food prices rose 0.5%. Electricity gained 0.9%, and gasoline prices increased 1.0%. Those costs matter because families pay them each month, leaving less cash for other goods and services.

Used car prices offered some relief, falling 1.2%. But that drop was not enough to offset gains in other parts of the report.

The report also lacked the usual yearly inflation figures. Missing price data from the 2025 government shutdown left the Labor Department without the figures needed for an annual comparison.

That made the monthly readings even more important. Investors now need to see whether price growth keeps slowing or remains too high for the Fed to cut rates.

Tuesday's inflation report put fresh pressure on the Fed. The central bank held rates at 3.75%–4.00% at its last meeting. But October's price data gave officials more reason to consider a hike in December.

Bond traders reacted at once. The 10-year Treasury yield rose to nearly 4.97%, up about 0.09 percentage points from Monday. Short-term yields climbed as traders raised their bets on higher rates.

The Fed wants inflation near 2% over time. But strong hiring and rising prices make that goal harder to reach.

Friday's jobs report showed that U.S. employers added 165,000 jobs in October, far above forecasts near 65,000. The jobless rate also fell to 4.1%. Strong hiring helps workers and keeps spending firm. But it can also make it harder to slow price growth.

The Fed now faces a tough choice. Higher rates can help cool inflation, but they also raise costs for firms and families. Tuesday's report gave officials another reason to keep rates high or raise them further.

Tuesday's weak opening followed one of Wall Street's best days of the year. On Monday, the Dow surged 1,104 points. The S&P 500 gained 2.35%, while the Nasdaq jumped 2.74%. Small stocks also soared as buyers returned after the prior week's sharp selloff.

AMD gained 13.3%, and Broadcom rose 8.8%. Lower oil prices helped lift banks, factories, retailers, and other firms that had faced heavy selling.

But Tuesday's inflation report changed the focus. Investors were no longer looking only at cheaper fuel and strong company sales. They also had to weigh the risk that rates could stay high or rise again.

Higher bond yields can hurt stocks in 2 ways. They raise borrowing costs and give investors a way to earn more from government bonds.

That puts pressure on firms with high stock prices and large spending plans. Monday showed that buyers were ready to return. Tuesday showed that inflation can quickly change their plans.

The AI boom faces another test as borrowing costs rise. Microsoft, Amazon, Google, and Meta are spending billions on chips, servers, and data centers. Those projects need large amounts of power and can take years to earn back their costs.

Higher rates add to that burden. Firms that borrow money to build new sites must pay more in interest, which can leave less cash for new projects. Large tech firms with strong cash flow may have more room to keep spending. Smaller firms that rely on loans could face a harder path.

The market has already shown how fast concerns over AI costs can hurt stocks. Last week, Nvidia, AMD, and several data-center firms suffered steep losses as investors feared project delays and tighter rules. Monday brought a strong rebound in many chip stocks, but Tuesday's inflation report added another risk.

Demand for AI may remain high. The key question is how much firms can earn after paying to build and run the systems. Higher rates make that question more important, especially for firms that need debt to fund growth.

Oil offered some relief Tuesday as crude prices moved lower. Brent traded below $90 a barrel in early trading, down sharply from levels above $115 in late October. The drop followed fresh hopes that talks between the U.S. and Iran could help ease the risk to oil supplies. 

Lower crude prices can help airlines, truckers, factories, and stores. Those savings may reach shoppers if fuel and shipping costs stay lower.

But October's inflation report showed why the Fed remains cautious. Energy prices rose 0.7% last month. Gasoline gained 1.0%, while electricity climbed 0.9%. The recent fall in crude had not yet brought broad relief to household bills during October.

If oil stays lower, it may help slow price growth in the months ahead. But fresh attacks or supply cuts could send costs higher again. For now, cheaper crude offers some hope. The Fed still needs proof that the drop will last and help bring inflation down.

Wednesday, November 11, is Veterans Day. U.S. stock exchanges remain open, but the bond market will close for the holiday. That means stocks can still trade, while the main market for U.S. government debt takes a break. Investors will watch whether stocks can regain ground after Tuesday's weak opening. They will also look for signs that buyers are returning to Big Tech.

Thursday brings new jobless claims and other reports that will help show how the economy is holding up. Friday, November 13, brings the October Producer Price Index at 8:30 a.m. ET.

That report tracks prices received by U.S. producers. It can show whether firms face new pressure to raise prices or accept lower profits. A hotter report could add to fears of another Fed rate hike. A softer reading could ease some of those concerns and help calm stocks.

Tuesday's inflation report showed that Wall Street still faces a hard test. The Dow gained 1,104 points Monday as oil fell and buyers returned to stocks. But hotter price data brought fresh selling pressure the next morning.

Consumer prices rose 0.4% in October. Core prices gained 0.3%, while food and housing costs kept climbing. At the same time, the U.S. job market remains firm. Employers added 165,000 jobs last month, and the jobless rate fell to 4.1%.

That leaves the Fed with a tough choice. Strong hiring supports the economy, but inflation gives officials less room to lower rates. Higher borrowing costs can hurt firms that need loans. They can also raise costs for families and weigh on stocks with high prices.

Lower oil could help ease some of that strain. But one drop in crude cannot offset rising food, housing, and service costs. The next test will come from bond yields and Friday's producer price report. If costs keep rising, traders may expect higher rates for longer.

The lesson is simple: Stocks can rise on strong profits, but high inflation can quickly change what investors are willing to pay.

Monday's rally showed that buyers were ready to return. Tuesday's inflation report gave them a reason to be more careful. Now Wall Street needs proof that prices can slow while the economy remains strong. That will help decide whether the rebound can last.