Tuesday, November 10, 2026
Oil Slides, Stocks Surge: S&P 500 Posts Best Day Since April as All Eyes Turn to CPI
Key Indicators
S&P 500
7,549.94
+2.35% (up)Nasdaq Composite
25,253.14
+2.74% (up)Dow Jones Industrial Average
52,389.75
+2.15% (up)10-Year Treasury Yield
4.88%
+2 bps (up)2-Year Treasury Yield
4.56%
+5 bps (up)WTI Crude Oil
$86.85
-4.38% (down)Brent Crude Oil
$92.57
-5.85% (down)Market Recap
Broad rally on Monday, led by falling oil and chips
U.S. stocks rallied hard on Monday, November 9. The S&P 500 gained 2.35% to 7,549.94, its best day since April 8. The Nasdaq Composite rose 2.74% to 25,253.14, and the Dow Jones Industrial Average jumped 1,104 points, or 2.15%, to 52,389.75. The Russell 2000 small-cap index rose about 3.15%, and every S&P 500 sector finished higher, so the rebound was broad rather than confined to tech. A sharp drop in oil prices drove much of the move, helping airlines (the JETS ETF rose about 5.15%) and industrials. The rally followed a bruising week for AI and chip stocks.
Chip rebound, but Nvidia falls on a board investigation
Chip stocks rebounded sharply, with one exception. AMD jumped 13.26% and Broadcom rose 8.78%, while Nvidia fell 4.27% to $178.67, the only decliner in the Philadelphia Semiconductor Index. Nvidia's board opened an investigation into reports that CEO Jensen Huang was the target of a foreign intelligence effort. The board said it has no reason to believe company secrets or national security were harmed and that it still has confidence in him. The drop erased about $192 billion of market value. Elsewhere, Telos rose 48.76% after raising its 2026 revenue forecast, and Ionis fell 21.36% after cutting its 2026 Tryngolza sales forecast.
Oil tumbles, yields edge up, CPI due this morning
Brent crude settled at $92.57, down 5.85%, and WTI settled at $86.85, down 4.38%. The 10-year Treasury yield rose about 2 basis points to 4.88% and the 2-year rose about 5 basis points to 4.56%, a sign that rate expectations remain firm even as stocks rallied. October CPI is due today, Tuesday, November 10, at 8:30 a.m. ET. Economists polled by Dow Jones expect a 0.3% monthly rise in headline prices and 0.2% excluding food and energy. A hot print would reinforce the case for a Fed rate hike, while a soft one would support the rebound. U.S. markets are open today.
Concept of the Day
Curve Flattening
The yield curve plots Treasury yields across maturities, from short-term bills to 30-year bonds. Flattening means the gap between short-term and long-term yields narrows. It happens in two ways. In a bear flattener, short-term yields rise faster than long-term yields. In a bull flattener, long-term yields fall faster than short-term yields. Short-term yields, such as the 2-year, are anchored to where investors expect the Fed to set its policy rate over the next couple of years. Long-term yields reflect expectations for growth, inflation, and the extra compensation investors demand for holding long-dated bonds. When the market starts pricing in rate hikes, the 2-year moves first and most, so the curve flattens. If the hikes push the 2-year above the 10-year, the curve inverts, a pattern that has historically often preceded slowdowns. The spread is usually quoted in basis points, for example the 10-year yield minus the 2-year yield. A narrowing spread is a signal about the market's view of future Fed policy, not a certainty about the economy.
Why it matters
Monday's Treasury moves were a bear flattener: the 2-year yield rose about 5 basis points to 4.56% while the 10-year rose about 2 basis points to 4.88%. That pattern fits a market that is pricing a firmer Fed path ahead of today's October CPI report. A hot inflation reading would likely push short-term yields up further and flatten the curve more, which tends to pressure rate-sensitive stocks, while a soft reading could reverse the move.
What to Watch
Tue, Nov 10
Consumer Price Index (October)
The last major inflation reading in focus; a hot print would strengthen the case for a Fed rate hike.
Fri, Nov 13
Producer Price Index (October)
Wholesale price pressures show whether cost increases are still feeding through to consumers.
Tue, Nov 17
U.S. Import and Export Price Indexes (October)
Shows how much imported costs, including fuel after oil's recent drop, are feeding into U.S. inflation.