December is increasingly shaping up to be another rate-hike meeting for the Federal Reserve, with Governor Christopher Waller suggesting that a 50-basis-point increase may be necessary if inflation remains elevated.
October inflation exceeds expectations, triggering fresh declines in Bitcoin and stocks
U.S. inflation recorded a modest slowdown in October after September’s stronger increase. However, the latest CPI figures came in above market forecasts, keeping inflation well above the Federal Reserve’s 2% target and raising the likelihood of another interest-rate increase in December.
The Consumer Price Index advanced 0.4% during October, compared with a 0.6% rise in September. The latest increase was higher than the 0.3% economists had anticipated.
Core CPI, which excludes food and energy prices, increased by 0.3%. This matched the previous month’s reading but exceeded expectations for a 0.2% gain.
The Bureau of Labor Statistics (BLS) did not release the annual inflation figure because the October 2025 CPI report was not published during the government shutdown.
Bitcoin came under renewed selling pressure following the inflation announcement, declining another 1% to approximately $73,600. U.S. equity futures followed a similar trajectory, with Nasdaq 100 futures losing 1.15% and S&P 500 futures slipping 0.5%.
Treasury yields had already been climbing ahead of the report as investors responded to comments from Federal Reserve Governor Christopher Waller. He argued that policymakers should consider raising interest rates in December even if October’s inflation reading showed some improvement. Waller also indicated that a stronger CPI result could support a more aggressive 50-basis-point increase.
After the inflation figures emerged, the 10-year Treasury yield gained 6.5 basis points to reach 4.93%. The two-year yield climbed 14 basis points to 4.69%, reflecting increased bets on further monetary tightening and a small possibility of a 50-basis-point move next month.
Anthropic seeks $1.4 trillion valuation ahead of potential IPO
Artificial intelligence company Anthropic is reportedly targeting a fully diluted valuation of approximately $1.4 trillion as it prepares for a potential initial public offering, according to Bloomberg.
The company is marketing its shares at an estimated $70 to $78 each, which could translate into a market capitalization of roughly $1 trillion at the upper end of the proposed range. Its fully diluted valuation also includes employee options, restricted stock and shares set aside for charitable matching programs.
Anthropic’s planned public offering and a separate private placement could generate approximately $90.4 billion. The fundraising total could rise to around $100 billion if the company activates its additional share-allocation option.
Anthropic pulls back preliminary IPO pricing details
Anthropic has withdrawn preliminary IPO pricing information shared with investment bankers after the circulated figures suggested the offering could raise as much as $69.3 billion, Reuters reported.
The proposed terms reportedly involved approximately 867 million shares being offered at prices ranging from $70 to $80.
Anthropic, the company behind the Claude AI chatbot, said the information was inaccurate and that an updated filing would follow. However, it did not explain which elements of the preliminary figures were incorrect, leaving the expected offering size and share price unresolved.
Bitcoin and gold retreat as traders prepare for December rate increase
Expectations of tighter Federal Reserve policy gained momentum ahead of Tuesday’s U.S. inflation announcement. Traders increasingly anticipated a 25-basis-point rate increase at the December 9 meeting, potentially lifting the central bank’s target range to 4.00%-4.25%.
Waller’s latest comments added to the hawkish outlook. He supported another rate increase in December regardless of whether October inflation had moderated, while suggesting that a stronger reading could warrant a larger 50-basis-point adjustment.
The changing monetary policy outlook weighed on major assets. Bitcoin and gold each lost slightly more than 1%, with BTC trading around $74,000 and gold slipping below $4,100 per ounce.
Nasdaq 100 futures also moved into negative territory following Monday’s rebound, while the U.S. dollar index continued trading firmly below 102.
