US stocks gave back part of Monday’s big rally on Tuesday, November 10, after…

US stocks gave back part of Monday’s big rally on Tuesday, November 10, after a hotter-than-expected inflation report. On Monday, the S&P 500, which tracks the 500 biggest US companies, rose 2.4% to 7,549.94, its best day since April; the Dow Jones Industrial Average climbed 1,104 points, or 2.2%, to 52,389.75; and the tech-heavy Nasdaq gained 2.7% to 25,253.14. On Tuesday, based on late-session figures (official closing numbers weren’t yet confirmed by wire reports), the S&P 500 fell about 0.6%, the Nasdaq dropped about 1.1%, and the Dow slipped about 0.4%. The US Consumer Price Index, which tracks the prices people pay for everyday goods and services, rose 0.4% in October from September, more than the 0.3% economists expected. Core prices, which exclude volatile food and energy, rose 0.3%, also above forecasts and the third straight month above estimates. The report reinforced expectations that the Federal Reserve will raise interest rates again in December. Dallas Fed President Lorie Logan said she sees a need for two more quarter-point hikes. The 2-year Treasury yield jumped about 0.17 percentage points, its biggest one-day rise since April 2025, and the 10-year yield climbed back to around 5%. Nvidia fell about 6%, extending its slide after its board opened an investigation into CEO Jensen Huang last weekend. Higher borrowing costs also hit homebuilders, with Lennar down more than 4%.

Philippine stocks and the peso both bounced back on Tuesday. The PSEi, the index of the 30 biggest companies on the Philippine Stock Exchange, rose 0.67% to 5,716.15, recovering from two straight days of losses. Analysts credited bargain hunting and lower oil prices. All sectors gained except services, and SM Investments led the index with a 6.64% jump. Trading picked up to ₱7.21 billion, though foreign investors were still net sellers of about ₱184 million. The peso strengthened 40 centavos to close at ₱62.91 per dollar, back in the ₱62 range and further away from its record low above ₱64 in late October. Brent crude, the global oil benchmark, fell nearly 6% on Monday to about $92.57 a barrel and slipped further to around $91 on Tuesday, after President Trump said he would hold off on more military strikes against Iran while diplomatic efforts continue. Cheaper oil reduces the dollars the Philippines needs to pay for fuel imports, which supports the peso. Note that the US inflation report came out after the PSE closed, so local markets haven’t reacted to it yet.

Tuesday showed the two biggest forces on the peso pulling in opposite directions. Falling oil is good news: the Philippines imports most of its fuel and pays in dollars, so cheaper oil eases pressure on the peso and should eventually help slow the fuel and transport costs that pushed October inflation to 7.8%. Oil has dropped from over $112 a barrel at the start of November to about $91, mainly on hopes that the conflict with Iran is winding down. Hotter US inflation pulls the other way. It makes a December Fed rate hike more likely and pushes US interest rates higher, which tends to strengthen the dollar and draw money away from emerging markets like the Philippines. That US report came out after the PSE closed, so today’s session will show which force wins. For the BSP, which meets December 17, the timing is tricky: lower oil gives some room to pause after four straight hikes, but a stronger dollar from another Fed hike could put the peso back under pressure. For OFW families, the stronger peso means slightly fewer pesos per dollar sent home, but cheaper fuel and steadier prices would help household budgets.