S&P 500: Equities face pressure as yields rise – Deutsche Bank

Strong US CPI figures, coupled with hawkish Fed remarks, triggered selling in US Treasuries and weighed on US shares, according to Deutsche Bank analysts. As investors factored in a faster pace of rate rises, the S&P 500 retreated, with technology and AI-related stocks initially lagging. Futures subsequently found support from CoreWeave’s better-than-expected revenue and raised guidance, signalling a partial recovery in the S&P 500.

US equities retreat as rate expectations rise

"In fact, the 2yr Treasury yield (+17.6bps) saw its biggest daily jump since April 2025, surging to 4.74%, and markets even priced a modest chance of a 50bp Fed hike in December."

"So it was a very rough day for rates, and that in turn put renewed pressure on equities, with the S&P 500 (-0.38%) pulling back as investors priced in faster hikes."

"With markets pricing in a more hawkish Fed, that also drove a fresh selloff in US equities, though this did ease a bit as the session went on."

"Tech stocks underperformed, with a -5.47% drop in Nvidia leading the Nasdaq (-0.74%) and the Mag-7 (-0.83%) to larger declines than the S&P 500 (-0.38%)."

"After the close, we then heard from CoreWeave, which delivered a Q3 revenue beat ($3.66bn vs $3.56bn est.) and upgraded its full-year revenue guidance ($13.0-13.3bn vs $12.9bn est.)."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)