Nvidia sinks as chip sell-off deepens on hot inflation data

The sell-off in chip stocks deepened on Wednesday as a hotter-than-expected inflation read raised worries about more rate hikes by the Federal Reserve and a higher cost of capital, potentially throwing a wrench into the AI trade. Long-dated bond yields, tied to borrowing costs, rose before trimming gains after September's inflation data was released. That put pressure on Tech (XLK) stocks, which were already on jittery ground amid elevated yields, rising debt, possible disruptions to AI buildouts, and overall concerns about a bubble. Chip giant Nvidia (NVDA) closed the session down more than 3%, leading the sector lower, as seen on Yahoo Finance's AlphaSpace heatmap below.