US stocks fall on hot inflation report as Nvidia tumbles again

US stocks experienced a decline on Tuesday due to a hot inflation report, with Nvidia, a tech giant, suffering another significant drop. The dollar strengthened following the release of the inflation data, which raised expectations of Federal Reserve interest rate hikes. After positive performances on several Asian and European stock markets, Wall Street indices faced pressure during the trading session.

This downturn was fueled by the recent revelation of an affair involving Nvidia's CEO Jensen Huang and a woman suspected of being a Chinese spy, leading to an FBI investigation. The scandal has intensified fears of a slowdown in AI data center buildouts, negatively impacting the tech sector. Nvidia's shares continued their downward trend, falling 5.5 percent in a single day, causing the company to fall below Microsoft in market valuation.

Despite these setbacks, some AI companies, such as Anthropic, faced a setback with their IPO plans, as the company sought less than the initially estimated $100 billion. Meanwhile, Brent crude oil prices dropped below $90 a barrel, down 1.2 percent, signaling a potential easing of supply concerns.