October US inflation exceeded expectations, with headline CPI rising 0.4% month on month and core CPI increasing 0.3%. The hotter readings revived concerns over prolonged restrictive monetary policy.

On November 10, $NVIDIA(NVDA)$ fell 5.47%, $Microsoft(MSFT)$ declined 2.20%, and $Invesco QQQ(QQQ)$ lost 0.68%. However, $Broadcom(AVGO)$ gained 3.91%, suggesting investors remain selective rather than abandoning AI entirely.

Bulls argue strong AI demand and earnings growth can sustain valuations. Bears warn that rising Treasury yields and persistent inflation could trigger further selling.

My take: Treasury yields are the immediate risk, while Fed guidance and AI earnings will determine whether the pullback becomes a deeper correction. A December rate hike remains uncertain, not guaranteed.

I favour gradual accumulation over chasing rebounds, prioritising companies with sustainable cash flow.