U.S. Stock Market Highlights for the New Week
Rate-hike expectations are heating up—is the AI sector facing another test?
U.S. stocks saw significant volatility last week, with the Nasdaq falling more than 5% in a single day and AI tech stocks bearing the brunt of the sell-off. Friday’s jobs data also came in unexpectedly strong, leaving the market to face a double test of inflation and AI earnings in the week ahead.
1. CPI will determine the direction of interest rates
The U.S. added 165,000 nonfarm jobs in October, and the unemployment rate fell to 4.1%. The odds of a rate hike in December rose to about 79%.
October CPI will be released Tuesday, followed by PPI on Friday. If inflation remains hot, Treasury yields and the dollar could strengthen, putting even more pressure on high-valuation tech stocks.
2. AI earnings are the main event this week
Key names to watch: $CRWV , $NBIS, $AMAT , $CBRS, $CSCO
I’m particularly focused on CoreWeave’s financing costs, order backlog, and cash flow. Demand for AI computing power remains strong, but data center construction is increasingly dependent on financing. The market is beginning to question whether capital expenditures can generate sufficient returns.
Also worth watching are AMAT’s equipment orders, which could show whether AI investment is continuing to spread into semiconductor manufacturing.
3. Anthropic IPO faces uncertainty
The previously discussed $1.5 trillion valuation has already drawn investor skepticism, and it’s uncertain whether the roadshow will kick off as scheduled this week. This could be a stress test for valuations in the AI private market.
This week’s earnings calendar
Monday: $RKLB, $ASTS
Tuesday: $CRWV
Thursday: $NBIS, $AMAT , $CBRS, $CSCO
My view is that the long-term demand for AI has not yet been disproven, but the market is shifting from chasing growth to scrutinizing profitability and access to financing.
If CPI remains hot and AI earnings fail to deliver better cash flow expectations, this tech stock correction may not be over.
DYOR
Rate-hike expectations are heating up—is the AI sector facing another test?
U.S. stocks saw significant volatility last week, with the Nasdaq falling more than 5% in a single day and AI tech stocks bearing the brunt of the sell-off. Friday’s jobs data also came in unexpectedly strong, leaving the market to face a double test of inflation and AI earnings in the week ahead.
1. CPI will determine the direction of interest rates
The U.S. added 165,000 nonfarm jobs in October, and the unemployment rate fell to 4.1%. The odds of a rate hike in December rose to about 79%.
October CPI will be released Tuesday, followed by PPI on Friday. If inflation remains hot, Treasury yields and the dollar could strengthen, putting even more pressure on high-valuation tech stocks.
2. AI earnings are the main event this week
Key names to watch: $CRWV , $NBIS, $AMAT , $CBRS, $CSCO
I’m particularly focused on CoreWeave’s financing costs, order backlog, and cash flow. Demand for AI computing power remains strong, but data center construction is increasingly dependent on financing. The market is beginning to question whether capital expenditures can generate sufficient returns.
Also worth watching are AMAT’s equipment orders, which could show whether AI investment is continuing to spread into semiconductor manufacturing.
3. Anthropic IPO faces uncertainty
The previously discussed $1.5 trillion valuation has already drawn investor skepticism, and it’s uncertain whether the roadshow will kick off as scheduled this week. This could be a stress test for valuations in the AI private market.
This week’s earnings calendar
Monday: $RKLB, $ASTS
Tuesday: $CRWV
Thursday: $NBIS, $AMAT , $CBRS, $CSCO
My view is that the long-term demand for AI has not yet been disproven, but the market is shifting from chasing growth to scrutinizing profitability and access to financing.
If CPI remains hot and AI earnings fail to deliver better cash flow expectations, this tech stock correction may not be over.
DYOR
