The data is hot, but the market isn’t falling?
By conventional wisdom, last night should have been a bloodbath.
September PPI rose 1.3% month over month and 6.3% year over year. The monthly increase was the biggest in four and a half years.
But all three major U.S. indexes closed higher:
Dow +1.08% Nasdaq +0.08% S&P 500 +0.33%
1. AI debt king strikes back
CoreWeave fell more than 9% at one point during the session, but ultimately closed up 5.94%.
In Stockholm, Jensen Huang said AI capabilities are improving every day.
On financing, he also struck an optimistic note, saying conditions are improving and Nvidia doesn’t need to step in to bail anyone out.
2. Chips keep bleeding
The Philadelphia Semiconductor Index fell 0.88%, marking its seventh consecutive decline.
Nvidia -1.84%
Intel -2.80%
SNDK -0.61%
The indexes are rising, but chip stocks are still falling.
3. Crypto stocks pack a bigger punch than Bitcoin
MSTR +5.62%
BMNR +4.9%
SVRN +14.43%
CRCL +9.33%
BTC briefly fell below $80,000 last night, then recovered to around $82,285 this morning.
Individual stocks are far more volatile than BTC, but how long the rebound lasts depends on whether Bitcoin can hold its ground.
4. Asia-Pacific takes the baton today
South Korea’s KOSPI opened up 1.74%, at 5,650.67.
SK Hynix and Samsung Electronics both gained more than 2%.
5. A few speeches to watch
At 10:00 Beijing time, Bank of England Governor Bailey will take part in a fireside chat at the IIF annual meeting.
At 11:30, Fed Chair Warsh will attend the IMF annual meeting and speak with Georgieva.
At 12:15, Bank of Canada Governor Macklem will join an IMF panel discussion.
PPI hit a four-and-a-half-year high, but bets on rate hikes didn’t reach a new high along with it.
Now it’s a matter of what central bank officials say next.
If they continue to strike a hawkish tone, the dollar, Treasury yields and gold could become volatile again, and last night’s rebound may prove short-lived.
If they keep hedging their words, risk appetite could continue to recover, and short sellers will have to keep hanging on.
By conventional wisdom, last night should have been a bloodbath.
September PPI rose 1.3% month over month and 6.3% year over year. The monthly increase was the biggest in four and a half years.
But all three major U.S. indexes closed higher:
Dow +1.08% Nasdaq +0.08% S&P 500 +0.33%
1. AI debt king strikes back
CoreWeave fell more than 9% at one point during the session, but ultimately closed up 5.94%.
In Stockholm, Jensen Huang said AI capabilities are improving every day.
On financing, he also struck an optimistic note, saying conditions are improving and Nvidia doesn’t need to step in to bail anyone out.
2. Chips keep bleeding
The Philadelphia Semiconductor Index fell 0.88%, marking its seventh consecutive decline.
Nvidia -1.84%
Intel -2.80%
SNDK -0.61%
The indexes are rising, but chip stocks are still falling.
3. Crypto stocks pack a bigger punch than Bitcoin
MSTR +5.62%
BMNR +4.9%
SVRN +14.43%
CRCL +9.33%
BTC briefly fell below $80,000 last night, then recovered to around $82,285 this morning.
Individual stocks are far more volatile than BTC, but how long the rebound lasts depends on whether Bitcoin can hold its ground.
4. Asia-Pacific takes the baton today
South Korea’s KOSPI opened up 1.74%, at 5,650.67.
SK Hynix and Samsung Electronics both gained more than 2%.
5. A few speeches to watch
At 10:00 Beijing time, Bank of England Governor Bailey will take part in a fireside chat at the IIF annual meeting.
At 11:30, Fed Chair Warsh will attend the IMF annual meeting and speak with Georgieva.
At 12:15, Bank of Canada Governor Macklem will join an IMF panel discussion.
PPI hit a four-and-a-half-year high, but bets on rate hikes didn’t reach a new high along with it.
Now it’s a matter of what central bank officials say next.
If they continue to strike a hawkish tone, the dollar, Treasury yields and gold could become volatile again, and last night’s rebound may prove short-lived.
If they keep hedging their words, risk appetite could continue to recover, and short sellers will have to keep hanging on.