On October 15, U.S. stocks closed higher despite continued weakness in artificial intelligence (AI) related technology shares, buoyed by falling Treasury yields and strength in consumer stocks.
According to the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose by 556.21 points (1.08%) to close at 52,177.69.
The Standard & Poor's (S&P) 500 index increased by 25.12 points (0.33%) to finish at 7,744.06, while the tech-heavy Nasdaq Composite gained 20.16 points (0.08%) to close at 26,713.03.
Concerns over excessive investment and debt burdens among AI companies contributed to the weakness in tech stocks, with shares of Tesla (down 1.29%), Nvidia (down 1.84%), and Broadcom (down 0.55%) declining.
However, CoreWeave, a cloud computing firm that had sparked worries about AI infrastructure investment, initially fell nearly 10% before closing up 5.9%. Nvidia CEO Jensen Huang noted at a Bloomberg event that "CoreWeave's competitiveness is strengthening every day," which helped restore investor sentiment.
Despite positive earnings reports from AI companies, investor confidence remained shaky. Anthropic reported a 45% increase in third-quarter revenue to $16.8 billion compared to the previous quarter. Taiwan's TSMC, the world's largest semiconductor foundry, also announced record quarterly net income, yet caution regarding AI-related tech stocks persisted.
Meanwhile, as investors shifted funds from AI tech stocks to consumer sectors, shares of Nike (up 5.21%), Home Depot (up 4.31%), and Walmart (up 1.5%) rose.
The decline in U.S. Treasury yields also supported the stock market's rebound. According to electronic trading platform Tradeweb, the yield on the 10-year U.S. Treasury note fell to 5.086%, marking the largest single-day drop since August 1.
"Concerns over excessive investment and debt burdens among AI companies have led investors to move towards safe assets like Treasuries," analysts noted.
Additionally, the U.S. Producer Price Index (PPI) for September rose by 1.3% from the previous month, significantly exceeding market expectations of 0.6% and marking the largest monthly increase since March 2022. However, its impact on the stock market was limited.
David Russell, a global strategist at TradeStation, told CNBC, "The high energy prices reflected in the PPI, following the Consumer Price Index (CPI), indicate that inflation is worsening, suggesting that the Federal Reserve may need to take action."
Meanwhile, international oil prices ended mixed amid a decline in U.S. crude inventories and discussions on easing sanctions on oil tankers. On the New York Mercantile Exchange, West Texas Intermediate (WTI) for November delivery rose by $2.88 (3.03%) to settle at $97.97 per barrel, marking its highest level since September 18 after six consecutive days of gains. In contrast, the global benchmark Brent crude for December delivery fell by $0.14 (0.13%) to close at $105.92 per barrel.
* This article has been translated by AI.
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