AI summary
Summary of article:
Higher inflation data in the United States in October added to the pressure on the market as the Federal Reserve is expected to raise interest rates. US stocks generally fell in early trading; Also, analysts warned that if Huang Renxun leaves office, Huida’s value could fall 25% to 30%.
US inflation was not as good as expected, increasing external expectations of interest rate hikes. US stocks and bonds fell.US stocks All four major indices were negative in early trading on the 10th.
The Dow Jones Industrial Average fell 0.3% in early trading, the S&P 500 index fell 0.5%, the Nasdaq index fell 0.8% and the Philadelphia Semiconductor Index fell 1.5%.
TSMC ADRs reversed the trend and rose 0.8%.Huida Fell 3%.
Well-known analyst Dan Ives and others believe that ifJen-Hsun Huang If Huida is forced to resign as CEO, Huida’s value could fall by 25%-30%. This is because the company’s future direction may change, and a completely different competitive environment for AI chips may emerge at home and abroad.
The US Consumer Price Index (CPI) increased by 0.4% monthly in October. Excluding the core CPI, which has volatile food and energy prices, the monthly increase was 0.3%, which was not as good as market expectations. The government shutdown last October temporarily disrupted data collection, and the Bureau of Labor Statistics did not release annual growth rates.
The yield on the US 2-year Treasury note, which is the most sensitive to interest rates, rose 12 basis points to 4.68%, with bond yields and prices rising inversely.
Lindsay Rosner of Goldman Sachs Asset Management pointed out: “CPI data continues to be strong, and the Fed may push for more aggressive interest rate hikes. Our basic forecast scenario is that despite the turmoil in AI, interest rates will still be raised in December, and inflation is stubborn, and the possibility of further interest rate hikes in 2027 cannot be ruled out.”
Ahead of the release of the CPI report, Federal Reserve Board Governor Christopher Waller issued a fiery message. In his speech on the 10th, he expressed support for raising interest rates in December and warned that if inflation continues to accelerate, he will support a double-digit rate increase to protect the credibility of the Fed.
Brent oil prices fell to around $90 a barrel, mainly because traders believed the war in the Middle East was expected to resolve. US President Trump said there is no need to attack Iran further, perhaps a sign that the conflict is gradually ending.
Summary FAQ
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The monthly CPI growth rate was higher than expected, which again increased market claims that the Federal Reserve may maintain a more dovish stance, which could cause US bond yields to rise and put pressure on the stock market. All four major US stock indices closed in the black in early trade.
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The news quoted analysts’ opinions as saying that if Huang Renxun is forced to resign from the CEO post, Huida’s future direction and the competitive landscape of AI chips may change, and the market valuation may be revised down by 25% to 30%.
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Interest rate-sensitive 2-year US Treasury yields rose 12 basis points to 4.68%, reflecting rising expectations of interest rate hikes. At the same time, oil prices declined, indicating that the market is also evaluating the possible de-escalation of conflicts in the Middle East.
