Nvidia Shares Slump Over 3.5% as Hotter Inflation Sparks Broad Tech Sell-Off

Nvidia shares dropped more than 3.5% toward an intraday low of $220.21 on Wednesday, weighed down by macroeconomic headwinds and competitive pressures. The decline deepened from an earlier 2% drop following the release of hotter-than-expected September U.S. Consumer Price Index data, which showed headline inflation accelerating 0.6% month-over-month and 3.7% annualized. The report lifted Treasury yields and increased Federal Reserve rate hike odds, fueling a broad sell-off that dragged the Nasdaq down 2% and the Philadelphia Semiconductor Index down 2.8%. Company-specific challenges, including shrinking market share in China and Microsoft's new custom AI chip, also pressured Nvidia.