AI stocks rebound premarket; Treasury yield at 5.08%
- Goldman Sachs upgraded CoreWeave to Buy with a price target of $106. The stock has fallen 43% since August 11 and 24% over the past five trading sessions, but is up 6% premarket.
- Nasdaq 100 futures are up about 1%, while S&P 500 futures are up 0.5%. The 10-year Treasury yield is at 5.08%, and markets have fully priced in the Fed holding rates steady this month.
A recovery in sentiment toward AI stocks only solves half the problem: the 5.08% risk-free rate is still capping valuations for risk assets. How long the rebound lasts will depend on whether this week’s earnings from the big tech companies show that capital spending can translate into revenue. In the short term, holding above last week’s intraday wick low would leave room for a recovery; a break below it could send liquidation-driven selling lower. Narrative tokens tied to computing power tend to have more upside beta than spot assets, but they also pull back faster. Are you adding to positions on the AI narrative in this rally, or just waiting for rate signals?
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- Goldman Sachs upgraded CoreWeave to Buy with a price target of $106. The stock has fallen 43% since August 11 and 24% over the past five trading sessions, but is up 6% premarket.
- Nasdaq 100 futures are up about 1%, while S&P 500 futures are up 0.5%. The 10-year Treasury yield is at 5.08%, and markets have fully priced in the Fed holding rates steady this month.
A recovery in sentiment toward AI stocks only solves half the problem: the 5.08% risk-free rate is still capping valuations for risk assets. How long the rebound lasts will depend on whether this week’s earnings from the big tech companies show that capital spending can translate into revenue. In the short term, holding above last week’s intraday wick low would leave room for a recovery; a break below it could send liquidation-driven selling lower. Narrative tokens tied to computing power tend to have more upside beta than spot assets, but they also pull back faster. Are you adding to positions on the AI narrative in this rally, or just waiting for rate signals?
$BTC $ETH $TAO