For the week ending 13 November 2026
As of midday Friday, global equities were firmer on the week, recovering some of the last week’s losses. The gains came despite a sharp jump in bond yields as US CPI surprised to the upside. The yield on the US 10-year note rose 31 basis points from a week ago to 5.13% today as odds of a rate hike grew. The price of a barrel of West Texas Intermediate crude oil dipped to $89.60 from $91 last Friday, while volatility, as measured by futures on the Cboe Volatility Index (VIX), fell to 19.2 from 24.2.
MACRO NEWS
Hotter inflation reinforces expectations for Fed tightening
Consumer prices in the US rose 0.4% in October, and core prices increased 0.3%. The firmer-than-expected report strengthened expectations that the Federal Reserve will raise rates again in December. Markets have fully priced a quarter-point increase and assigned a modest chance to a half-point move. After the data was published, Fed officials nearly unanimously expressed that the central bank has more work to do to get inflation back down to target.
Treasury yields moved sharply as investors priced in additional rate hikes. The two-year yield rose about 30 basis points from Tuesday as traders priced in a third future Fed rate hike next year.
Friday’s producer price index was somewhat more muted, with headline and core readings both rising 0.3% month over month, but the data didn’t shift the outlook much. PCE, the Fed’s preferred price index, is due toward the end of the month and is forecast to rise about 0.3%.
Nvidia leadership change deepens scrutiny of AI infrastructure
The broad AI ecosystem faced renewed scrutiny after Nvidia announced that Chief Executive Officer Jensen Huang had resigned and Chief Financial Officer Colette Kress would serve as interim CEO. Huang was forced from his post after several extramarital affairs were revealed, one of which was with a reputed Chinese intelligence operative. Amid the fallout, Nvidia, Megaspeed, and Super Micro are all reported to be facing Justice Department investigations related to the potential diversion of export-restricted AI chips to China.
The developments raised questions about financing across the AI infrastructure ecosystem. The most immediate vulnerability appears to be among neocloud providers and mid-sized datacenter operators that depend more heavily on external financing, of which Nvidia has been the lynchpin. Investors remain concerned that tighter credit conditions could weigh on weaker participants in the buildout.
US Commerce Secretary Howard Lutnick also faced scrutiny over reports that he had resisted tougher enforcement against companies accused of diverting restricted Nvidia chips to China, partly over concerns about escalating trade tensions with Beijing.
Iran negotiations stall
Early-week optimism about progress in US–Iran talks, mediated by Qatar and other regional players, faded as President Donald Trump said the US does not need a deal and that he was redirecting Vice President JD Vance’s efforts elsewhere. Oil prices have edged off their recent lows but still remain well below the late-October highs, with Brent crude holding below $100 per barrel.
Russia and Ukraine hold trilateral talks in Abu Dhabi
Russia sent a senior delegation to Abu Dhabi for talks with Ukraine and the US, bringing together diplomatic, intelligence, and military officials. The discussions focused on postwar security arrangements and territorial issues in eastern Ukraine, which US officials said must be addressed together to end the war.
Ukrainian President Volodymyr Zelensky described the talks as “constructive,” while Russian negotiator Vladimir Medinsky said peace appeared closer. Even so, US presidential envoy Jared Kushner cautioned that an agreement would take time. Russian President Vladimir Putin also agreed that Europe would be represented in the next round of discussions.
QUICK HITS
Existing home sales in the US fell 5.5% in October to an annualized pace of 3.75 million, the weakest rate since 2010.
New York Fed consumer inflation expectations were little changed in October.
UK gross domestic product expanded 1.9% year over year in the third quarter, up from 1.4% in the second quarter.
A bipartisan permitting bill advanced in the Senate by a 73–25 vote. The legislation, which has President Trump’s support, is intended to accelerate federal approvals for major energy and infrastructure projects.
The Trump administration said it plans to maintain its tariff policy despite the Republican Party’s weak showing in the midterm elections.
Canada indicated that it does not need to proceed with a contested tax on large digital companies.
Syria was reportedly considering sending assistance to Saudi Arabia for its campaign against the Houthis.
AI spending growth has slowed even as adoption continues to rise, according to Ramp data. Lower prices from frontier model developers, greater customer efficiency, and cheaper alternatives have limited spending growth.
Anthropic’s initial public offering, scheduled for next week, was reportedly six times oversubscribed.
THE WEEK AHEAD
Monday: China retail sales, industrial production, home prices; Japan GDP; eurozone industrial production; Canada CPI
Tuesday: UK unemployment; US retail sales, industrial production
Wednesday: APEC summit begins in Shenzhen; Japan trade figures; UK CPI; eurozone CPI; US housing starts, October FOMC minutes
Thursday: US Philly Fed index
Friday: Japan CPI; UK retail sales; Canada retail sales
Stay focused and diversified. In any market environment, we strongly believe that investors should stay diversified across a variety of asset classes. By working closely with your investment professional, you can help ensure that your portfolio is properly diversified and that your financial plan supports your long-term goals, time horizon, and tolerance for risk. Diversification does not guarantee a profit or protect against loss.
The information included above, as well as individual companies and/or securities mentioned, should not be construed as investment advice, a recommendation to buy or sell, or an indication of trading intent on behalf of any MFS product.
Securities discussed may or may not be holdings in any of the MFS funds. For a complete list of holdings for any MFS portfolio, please see the most recent annual, semiannual, or quarterly report. Full holdings are also available on the individual Fund Summary tab in the Products section of mfs.com.
The views expressed in this article are those of MFS and are subject to change at any time. No forecasts can be guaranteed.
Past performance is no guarantee of future results.
Sources: MFS research, Wall Street Journal, Financial Times, Reuters, Bloomberg News, FactSet Research, S&P Global Market Intelligence, LSEG.
AUTHOR
Jamie Coleman
Senior Strategist,
Strategy and Insights Group