Inflation was the big story this week. Two new reports showed that prices are still rising faster than the Fed would like. Consumer prices rose 0.4% in October, more than expected, and everyday items like groceries and restaurant meals moved higher. Wholesale prices, which track what businesses pay before goods reach store shelves, rose a more modest 0.3% for the month but are up 6.5% from a year ago. This matters because higher costs for businesses often get passed along to shoppers in the months ahead. Energy remains a wild card, too. Oil prices swung throughout the week with news from the Middle East and rose again on Thursday after attacks on Saudi oil facilities. Fortunately, it does seem like we have seen some decreases at the pump this week.
Fed officials responded with a clear message. Bringing inflation down is now their top priority. Governor Christopher Waller said he supports raising rates in December, and New York Fed President John Williams said more increases are likely. Markets are now “pricing in” a rate hike at the December meeting and possibly another one early next year. Those expectations have pushed the 10-year Treasury yield above 5% once again. Mortgage rates are holding above 7%, and sales of existing homes fell in October to their slowest pace since 2010. If you are thinking about buying a home, refinancing, or taking on a large loan, it is wise to plan for borrowing costs to stay elevated for a while.
There was also big news from one of the market’s best-known tech names. Nvidia, one of the world’s largest companies and a leader in artificial intelligence, announced that its longtime CEO, Jensen Huang, had resigned. I won’t go into the details surrounding his departure as there are plenty of headlines out there on the topic. The company’s chief financial officer will step in as interim CEO, as the company pivots and tries to move past this glaring change. Weeks like this serve as a good reminder that markets react quickly to each new headline. A well-built plan and investment allocation are designed to work through these exact types of scenarios.
Interesting to Note
Today is Friday the 13th, and it’s the third one this year, following February and March. That’s the most any year can have. Every calendar year has at least one Friday the 13th and never more than three. Fear of the date even has a name, “friggatriskaidekaphobia,” and some people still avoid travel or big decisions on it. If you’re superstitious, the good news is this is the last one of 2026.
Looking Ahead
• Nvidia earnings (Nov. 17): This is the company’s first report under its interim CEO, and a key read on AI spending.
• October PCE inflation (Nov. 25): This is the Fed’s preferred inflation measure and one of the last big reports before the December meeting.
• Next Fed meeting (Dec. 8–9): Markets now see a rate increase as highly likely.
• Government funding deadline (Dec. 11): Congress needs a new spending deal to avoid another shutdown. Some lawmakers expect a short-term extension into early next year, but others want to use the bill to push changes on Iran and spending. Last year’s 43-day shutdown delayed key economic reports, which is why this month’s inflation report had no year-over-year number.
Have a nice weekend!
Written by: Chris Wasson, CFP®
Sources:
Bureau of Labor Statistics: Consumer Price Index – October 2026
Bureau of Labor Statistics: Producer Price Indexes – October 2026
CNBC: Fed Governor Waller sees December hike likely, opens door to possible half-point increase
Reuters: Fed’s Williams says central bank has ‘work to do’ to get inflation back on target
CNBC: 10-year Treasury yield moves to 5.15% as traders weigh producer price report
National Association of Realtors: Existing-Home Sales Decreased 5.5% in October
NVIDIA: NVIDIA Announces CEO Transition
Reuters: Oil settles $3 higher on attacks on Saudi energy sites, Strait of Hormuz disruptions
Holland & Knight: Beyond the Midterms: Congress Faces Converging Year-End Deadlines
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