Late at night, the US stock market staged a major reversal

On Thursday local time (October 15), U.S. tech stocks experienced a sell-off at the opening, plunging into a deep correction. However, market sentiment stabilized and rebounded, with all three major indices recovering losses and ultimately closing higher. On the surface, concerns about the AI bubble led to a divergence in tech sector performance, with Qualcomm (QCOM) rising over 3% and Micron Technology (MU) up nearly 2%; meanwhile, Intel (INTC) fell over 2% and Nvidia (NVDA) dropped nearly 2%. Chinese concept stocks surged collectively, with the Nasdaq (NDAQ) Golden Dragon China Index rising 1.96%. Additionally, following the CPI data, the U.S. September PPI released on Thursday also exceeded expectations, intensifying inflationary pressures and raising market interest rate hike expectations.

In the morning, the stock markets in Japan and South Korea opened higher. The Korea KOSPI (KS11) index opened up 1.8% and was up 1.47% at the time of writing; the Nikkei 225 (N225) index opened up 0.78% and expanded its gains to 1.04% at the time of writing.

Tech Stocks Experience Deep V Rebound

Chinese Concept Stocks Surge Collectively

On Thursday local time, U.S. stocks initially continued the previous day's decline, with tech stocks facing heavy selling pressure and plunging into a deep correction, with the Nasdaq at one point down over 1.4%. However, market sentiment stabilized, leading to a V-shaped rebound in tech stocks. Ultimately, all three major U.S. stock indices closed higher. By the end of trading, the Dow Jones rose 1.08% to 52,177.69 points, the S&P 500 (SPX) index rose 0.33% to 7,744.06 points, and the Nasdaq rose 0.08% to 26,713.03 points.

On the surface, tech stocks showed a mixed performance. Most large tech stocks declined, with individual stocks such as Microsoft (MSFT) up 1.08%, Google up 0.45%, Amazon (AMZN) up 0.27%, Meta (META) down 0.11%, Apple (AAPL) down 0.28%, Tesla (TSLA) down 1.29%, and Nvidia (NVDA) down 1.84%.

The Philadelphia Semiconductor (SOX) index fell 0.88%, significantly narrowing its decline from earlier in the session, but this marked the seventh consecutive trading day of decline for the index. Semiconductor (881121) stocks were mixed, with Qualcomm (QCOM) up 3.35%, ARM up 2.85%, ASML up 0.45%, Broadcom (AVGO) down 0.55%, Advanced Micro Devices (AMD) down 1.50%, Taiwan Semiconductor Manufacturing Company (TSM) down 1.73%, and Intel (INTC) down 2.80%.

Micron Technology (MU) closed up 1.87%, with a stock price of $931.24; the stock was the first to turn positive in the storage sector after initially dropping over 6%. On that day, Micron Technology (MU) had a trading volume of $35.255 billion, ranking first among U.S. stocks. Additionally, SanDisk (SNDK) and Western Digital (WDC) initially dropped over 8% and 6%, respectively, but their declines narrowed significantly by the end of trading.

Chinese concept stocks surged collectively, with the Nasdaq (NDAQ) Golden Dragon China Index rising 1.96%. Among popular Chinese concept stocks, BeiGene (ONC) rose 6.43%, New Oriental (EDU) rose 4.81%, Huazhu Group (HTHT) rose 3.94%, Amer Sports (AS) rose 3.92%, NetEase (NTES) rose 2.73%, Trip.com Group (TCOM) rose 2.70%, JD Group (JD) rose 2.66%, Vipshop (VIPS) rose 2.45%, Xpeng Motors rose 2.28%, Futu Holdings (FUTU) rose 0.32%, Alibaba (BABA) fell 0.05%, and TAL Education fell 0.08%.

Jensen Huang Publicly Endorses CoreWeave

The performance of cloud service startup CoreWeave (CRWV) was one of the drivers of the U.S. stock market reversal on Thursday. Following a 15% drop on Wednesday, the stock opened down over 9% again on Thursday, but then Nvidia (NVDA) CEO Jensen Huang publicly endorsed CoreWeave (CRWV).

Nvidia (NVDA) CEO Jensen Huang stated that CoreWeave's (CRWV) financial situation is improving, and Nvidia (NVDA) is a supplier of computing equipment to CoreWeave (CRWV). He told Bloomberg at an event in Stockholm, "CoreWeave's (CRWV) strength is growing every day." "Nvidia (NVDA) does not need to provide a financial guarantee for CoreWeave (CRWV). I am optimistic. In fact, their capital costs are decreasing."

Previously, confidence in CoreWeave (CRWV) in the credit market had deteriorated, with concerns about rising default risks, and Huang was attempting to restore market confidence in the company. CoreWeave (CRWV) is an important case for testing the sustainability of the business model of emerging artificial intelligence (885728) infrastructure companies, which were initially created to meet the "almost unlimited growth" demand for AI (885728) computing power from giants like Nvidia (NVDA). However, companies like CoreWeave (CRWV) have taken on significant debt with support from suppliers, including Nvidia (NVDA), raising concerns in the market about creating false demand through cyclical financing.

Ultimately, CoreWeave's (CRWV) stock price rebounded from a nearly 10% drop to close up nearly 6%.

U.S. September PPI Data Exceeds Expectations Again

In macroeconomic data, following the CPI released on Wednesday, the U.S. September PPI released on Thursday also exceeded expectations, indicating that underlying inflationary pressures remain strong, and retail sales data also surpassed expectations.

Data released by the U.S. Department of Labor on the 15th showed that the September PPI rose 1.3% month-on-month, higher than August's 0.5%, marking the largest increase since March 2022. The year-on-year increase in the index rose from 5.6% in August to 6.3%, the largest increase since December 2022.

The commodity price index rose 2.6% month-on-month, with energy (850101) prices contributing over 80% to the increase in commodity prices. The service price index rose 0.8% month-on-month, the largest increase since April this year. Excluding energy (850101) and food prices, the core PPI rose 0.7% month-on-month and 5% year-on-year in September, while the month-on-month and year-on-year increases in August were 0.2% and 4.6%, respectively.

Data released by the U.S. Department of Labor on the 14th also showed that the U.S. September CPI month-on-month and year-on-year increases had also widened. The rise in energy (850101) prices was a significant factor driving the increases in both PPI and CPI for the month. Both reports point to the persistence of inflationary pressures. Market participants believe that the data may strengthen the position of Federal Reserve officials to continue raising interest rates in the coming months, especially against the backdrop of rising energy (850101) costs and the inflation issue becoming a focal point.