Heads up: US bond market closed for Veterans Day as equities face a hot CPI hangover

Wall Street was left licking its wounds yesterday following the hotter-than-expected US inflation data sent Treasury yields surging and shares tumbling, according to investingLive. As such, that makes for a rather peculiar setup following yesterday's market reaction to the inflation numbers.

Key points

• While core inflation advanced by 0.3% m/m versus estimates of 0.2%, Headline inflation came in at 0.4% m/m in October against the 0.3% expected.
• And that was enough to reignite worries over the Fed potentially having to tighten policy more aggressively in December.
• 2-year Treasury yields leapt by roughly 18 bps to 4.74%, while 10-year yields rose by roughly 12 bps to to settle at 5%.
• Equities weren't too pleased with the S&P 500 declining 0.4% and the Nasdaq shedding 0.7% in turn.
• With the bond market and fixed income dealers out of action.

What happened: Inflation data

While core inflation advanced by 0.3% m/m versus estimates of 0.2%, Headline inflation came in at 0.4% m/m in October against the 0.3% expected. And that was enough to reignite worries over the Fed potentially having to tighten policy more aggressively in December, especially following Fed governor Waller flagged about perhaps needing to move by 50 bps on more robust price pressures than anticipated. 2-year Treasury yields leapt by roughly 18 bps to 4.74%, while 10-year yields rose by roughly 12 bps to to settle at 5%.

Equities weren't too pleased with the S&P 500 declining 0.4% and the Nasdaq shedding 0.7% in turn. Yet for a late recovery, the selloff in equities would've been much worse.

With the bond market and fixed income dealers out of action, we will not have the usual response from Treasury yields to help gauge whether yesterday's inflation shock is being digested or repriced further. I'd be keeping an eye on US futures, the greenback and whether tech equities can find their footing before we get to the Wall Street open later for the European morning session to follow.

Why inflation data matters for traders

Inflation figures decide how long central banks keep interest rates high. Hotter-than-expected readings usually lift bond yields and the local currency, while softer data raise hopes of rate cuts.

Price data feed straight into central-bank decisions, which makes them some of the most market-moving releases on the calendar for forex, bonds and stocks.

Market reaction and data

Crypto prices at the time of writing, from Binance spot data (2026-11-11 07:12 UTC):

On the currency side, the latest ECB daily reference rates (2026-11-10) show EUR/USD 1.1214, GBP/USD 1.3423, AUD/USD 0.6904, NZD/USD 0.5628, USD/JPY 158.18, USD/CHF 0.8207, USD/CAD 1.4136, USD/CNY 6.6703. These are reference fixes, not live quotes.

What to watch next for inflation data

Next in focus are the coming inflation releases, central-bank reaction to them and changes in market pricing for future rate moves.

Key scheduled releases on the economic calendar:

• GBP GDP m/m on Thu Nov 12, 07:00 UTC, forecast 0.0%, previous 0.1%
• USD Core PPI m/m on Fri Nov 13, 13:30 UTC, forecast 0.3%, previous 0.7%
• USD PPI m/m on Fri Nov 13, 13:30 UTC, forecast 0.4%, previous 1.3%

Follow every update in our Top 10 Forex News Today, read Euro bears haven't been this aggressive since the Covid pandemic, but is the trade getting too crowded? or see all of today's top market news.

FAQ

What is the latest inflation data news?

Wall Street was left licking its wounds yesterday following the hotter-than-expected US inflation data sent Treasury yields surging and shares tumbling.

Why do inflation numbers move markets?

Inflation data change expectations for central-bank interest rates, and rate expectations drive currencies, bond yields and stock valuations.

Where does this information come from?

This report is based on coverage from investingLive, checked against market data where available. It is a summary for information only and not investment advice.