A Federal Reserve interest-rate increase in December is looking increasingly certain, as Governor Christopher Waller has indicated that policymakers may even need to consider a larger 50-basis-point hike.
Higher-than-expected October inflation weighs on Bitcoin and stocks
U.S. inflation slowed modestly in October following September’s stronger reading, but the latest figures came in above economists’ estimates and remained significantly higher than the Federal Reserve’s 2% inflation target. The data has strengthened expectations that the central bank could deliver another rate increase at its final policy meeting of the year in December.
The Consumer Price Index (CPI) rose 0.4% in October, compared with a 0.6% increase in September. Economists had expected a smaller monthly gain of 0.3%.
Core CPI, which removes food and energy prices from the calculation, also increased 0.3%. The reading matched September’s figure but exceeded the 0.2% increase anticipated by analysts.
Meanwhile, the Bureau of Labor Statistics did not provide the annual CPI figure because an October 2025 inflation report was never published amid the government shutdown.
Following the release, Bitcoin extended its downward movement, losing another 1% to trade around $73,600. U.S. stock futures also weakened, with Nasdaq 100 futures falling 1.15% and S&P 500 futures declining 0.5%.
Bond yields had already moved higher before the inflation report, following overnight remarks from Federal Reserve Governor Christopher Waller. He suggested that the Fed should proceed with a December rate increase even if October inflation showed signs of cooling. Waller also warned that a stronger CPI reading could make a 50-basis-point hike an appropriate option.
The 10-year Treasury yield climbed 6.5 basis points to 4.93% after the data. Meanwhile, the two-year yield surged 14 basis points to 4.69%, reflecting growing market expectations of tighter monetary policy and a small possibility of a larger-than-usual increase in December.
Anthropic reportedly targets $1.4 trillion fully diluted valuation
Anthropic is reportedly preparing for an initial public offering that could value the artificial intelligence company at approximately $1.4 trillion on a fully diluted basis, according to Bloomberg.
The company is reportedly discussing a share price between $70 and $78, potentially giving it a market capitalization of around $1 trillion at the upper end of the proposed range. The fully diluted valuation also incorporates employee stock options, restricted stock and shares allocated for charitable matching initiatives.
The planned IPO and a related private placement could collectively raise approximately $90.4 billion. The total fundraising amount could approach $100 billion if an additional share-allocation option is exercised.
Anthropic withdraws preliminary IPO figures showing potential $69.3 billion raise
Anthropic has pulled back preliminary IPO pricing information previously distributed to bankers after details emerged suggesting that the offering could generate up to $69.3 billion, Reuters reported.
The information described a proposed sale of approximately 867 million shares, with an indicative price range of $70 to $80 per share.
The company behind the Claude AI chatbot acknowledged that the circulated pricing details were inaccurate and said it would issue a revised filing. However, Anthropic did not identify the specific errors, leaving investors without clarity on the final offering size or expected share price.
Bitcoin and gold decline as markets prepare for potential Fed tightening
Investors increased their expectations of a Federal Reserve rate hike ahead of the latest U.S. inflation figures. Markets were pricing in a potential 25-basis-point increase at the December 9 policy meeting, which would push the federal funds target range to 4.00%-4.25%.
Christopher Waller’s comments further strengthened those expectations. The Fed governor supported raising rates next month even if October inflation moderated, while noting that a hotter reading could justify a 50-basis-point adjustment.
The changing rate outlook put additional pressure on risk-sensitive assets. Bitcoin and gold both dropped slightly more than 1%, with BTC trading near $74,000 and gold falling below $4,100 per ounce.
Nasdaq 100 futures also moved lower after Monday’s recovery, while the U.S. dollar index maintained its strength below the 102 mark.
