This update was written automatically with AI from market data and news wire reports, and published without review by a person.
Key Takeaways
- US Producer Price Index (PPI) for October rose 0.3% month-over-month, coming in below the 0.4% estimate and marking a significant slowdown from September’s 1.3% surge.
- Commerce Secretary Howard Lutnick has agreed to testify voluntarily before the Senate Banking Committee on December 10 regarding potential export control evasions by NVIDIA (NVDA).
- Treasury Secretary Scott Bessent criticized the Commerce Department for failing to blacklist Megaspeed, a Singapore-based firm suspected of diverting advanced AI chips to China.
- US CENTCOM confirmed it shot down two Iranian one-way attack drones targeting Bahrain; no injuries or damage were reported despite Iranian claims of a successful strike on a US radar facility.
US Wholesale Inflation Eases More Than Expected
The US Producer Price Index (PPI) for final demand rose 0.3% in October, according to data released Friday by the Bureau of Labor Statistics. This figure was slightly lower than the 0.4% consensus estimate and represents a sharp deceleration from the revised 1.4% increase seen in September. On an annual basis, headline PPI rose 5.0%, significantly cooler than the 6.6% economists had anticipated.
Core inflation, which excludes volatile food and energy costs, remained steady. PPI Ex Food and Energy rose 0.3% for the month and 5.0% year-over-year, matching market expectations. The data suggests that while underlying price pressures remain, the immediate spike in wholesale costs—largely driven by energy in previous months—is beginning to moderate.
NVIDIA Under Fire Over Export Control "Leakage"
NVIDIA (NVDA) is facing intensifying pressure from Washington as Commerce Secretary Howard Lutnick prepares to testify before the Senate Banking Committee next month. The hearing will focus on whether advanced NVIDIA chips, specifically those above the H100 performance threshold, have evaded export controls to reach China.
Treasury Secretary Scott Bessent expressed deep frustration over "leaks" in the chip export system during a recent interview. He revealed that the Treasury Department has pushed for months to add Megaspeed, a key NVIDIA customer, to the federal Entity List. Bessent questioned whether NVIDIA did enough to "know its clients" and proactively stop the diversion of sensitive technology to restricted regions.
Geopolitical Tensions Escalate in the Persian Gulf
In a separate development, US Central Command (CENTCOM) reported that US forces intercepted two one-way attack drones launched by Iran’s Islamic Revolutionary Guard Corps (IRGC) toward Bahrain. The incident followed claims from the IRGC that it had successfully destroyed a US early-warning radar facility in retaliation for recent strikes on Iranian infrastructure.
CENTCOM dismissed the Iranian claims as false, stating there were no injuries or damage to US or allied assets. The escalation highlights the fragile security situation in the Middle East, which continues to pose a tail risk for global energy markets and shipping lanes in the Strait of Hormuz.
Automated market updates written with AI from market data and news wire reports, published without human review.