xStocks are not available in the U.S. or to U.S. persons. Geo restrictions apply. Read Kraken's xStocks Risk Disclosure and the Base Prospectus and related Final Terms for more information.
The Nasdaq's Valuation Sinks to the Lowest Since 2020 as a December Hike Gets Priced In
Oil tumbles, rate hike bets rise and AI stocks face a fresh test. Explore why cheaper crude may not sway the Fed in December - and what CoreWeave, Cisco and Applied Materials earnings could reveal about data center spending.
Brent crude fell 18.4% from its October 30 settlement on hopes of a US-Iran agreement, and fed funds futures moved further toward a December hike after the October jobs report showed payrolls up 165,000 against forecasts near 62,000. Tuesday's October CPI, released after those prices were taken, added to that case. Core prices rose 0.3%, a tenth above expectations, and energy still rose 0.7%.
Lower fuel prices will mostly reach the inflation data after the Fed's December 8 to 9 meeting, so the oil decline matters more for the path after December than for the decision itself. In equities, AI data center stocks led a 4.4% fall in the S&P 500 on November 5, as Democrats' midterm gains raised the prospect of tighter AI regulation, including pauses in new data center construction. The Nasdaq 100 closed Monday 10.6% below its October 6 record, and its forward P/E touched 18.0x on November 5, near its March 2020 low of 17.4x. Earnings from CoreWeave, Cisco and Applied Materials this week test whether data center spending holds up.