![[Seoul Pre-Market Brief] Jensen Huang's 'Optimistic' Remarks Revive CoreWeave](https://media.markettimes.co.kr/%EC%8B%9C%ED%99%A9%EB%A7%A8-4-800x600.webp)
Coreweave corporate bonds recover to the 80 cent range, stock price rebounds 6%... Jensen is also "optimistic." US 10-year yields fall to 5.08%, overnight futures rise 3.91%... Domestic credit volume burden continues
Key market trends
- ① Coreweave calming fear... Corporate bonds and stock prices rebound together
Coreweave financial concerns that shook the market the previous day have calmed down somewhat.
The price of corporate bonds maturing in 2032 recovered from the high 70s to the low 80s, and the stock price also rose by nearly 6%.
Bank of America raised Coreweave's sales growth forecast for next year from 102% to 105% and from 58% to 63% in 2027.
The company evaluates its ability to supply large-scale power as a strength and suggests a target price of $140.
Deutsche Bank also maintained its buy rating and target price of $150, saying there are no short-term liquidity problems and business expansion is continuing.
While NVIDIA owns about 10% of CoreWeave's shares, CEO Jensen Huang also expressed his position as 'optimistic' about CoreWeave.
Explanation that financial soundness is improving as financing costs have recently been lowered.
- ② PPI greatly exceeded expectations, but government bond interest rates fell to 5.08%
The U.S. producer price index (PPI) in September rose 1.3% from the previous month and 6.3% from the previous year, significantly exceeding market expectations of 0.6% and 5.3%.
Core PPI also showed 0.7% compared to the previous month and 5.0% compared to the previous year, which is higher than the expected 0.3% and 4.4%.
Energy prices account for more than 80% of the increase in product prices.
Despite high inflation, government bond interest rates did not rise but rather fell significantly.
It is believed that the recent increase in stock market volatility reflects the influence of funds moving into government bonds, a safe asset.
U.S. 10-year Treasury bond interest rate falls to 5.08%
- ③ Semiconductor recovery after intraday plunge… micron upward transition
In the early part of the market, selling focused on semiconductor stocks due to continued concerns over AI investment and memory oversupply.
As Elon Musk mentioned the possibility of expanding RAM production in China in 2028, caution over Chinese memory competition continues.
On the other hand, Wedbush's Dan Ives said fundamental demand for AI remains strong and sees the recent decline as a buying opportunity.
Semiconductor stocks also recovered from their decline in the afternoon as low-priced purchases flowed into technology stocks.
Micron rose 1.9%, overcoming the early trading weakness, and SK Hynix ADR also plunged nearly 6% at one point before narrowing its decline.
Nvidia, Apple, Broadcom, Meta, and Tesla fell, while Microsoft, Amazon, and Alphabet rose.
Market Man's Perspective
KOSPI has plummeted up to 24% from its intraday high over the past seven trading days. Similar to the sharp drop last July, investment sentiment weakened significantly as negative news related to semiconductors and interest rate and Middle East issues concentrated for a short period of time.
At that time, rumors of a reduction in the memory capacity of Nvidia's next chip, the possibility of Apple supplying Chinese semiconductors, and concerns about technological catch-up by Chinese equipment companies were all highlighted. This time, we are seeing a similar trend as concerns about Coreweave's financial issues and CXMT and AI investment sustainability continue to emerge.
Currently, the biggest burden is supply and demand. Recently, counter sales orders have increased at the same asking price, and the credit loan balance as of the 14th has decreased by about 550 billion won in one day. This can be seen as meaning that we have entered a period where credit volume is being cleared in earnest.
On the other hand, the company's performance outlook has not been significantly lowered during the recent decline. Coreweave also saw a recovery in corporate bond prices, and major securities companies actually raised their sales forecasts. The index drop of nearly 1,500 points in a short period of time is also large compared to the actual change in performance.
It is difficult to say that the volatility has ended immediately as supply and demand uncertainties remain, but as the decline has grown, attempts at a rebound can occur frequently. It is necessary to continue to monitor the movements of existing leading stocks and large-cap stocks that have recently experienced large corrections.
Today's checkpoint
Coreweave: Will financial concerns ease further after corporate bonds recover to the 80 cent level?
Semiconductor: Micron's upward trend and SK Hynix's ADR decline are reflected domestically
Interest rates: US 10-year note falls to 5.08% despite high PPI
Supply and demand: On the 14th, after the credit loan balance decreased by about KRW 550 billion, the volume of counter sales
Rebound: Strength of rebound in large stocks such as Samsung Electronics and SK Hynix after overnight futures +3.91%
Key indicators
Dollar Index 102.02 (-0.52%)
International oil price $97.97 (+3.03%)
Volatility Index 16.46 (-2.43%)
US 10-year Treasury bond interest rate 5.08%
MSCI Korea Index -2.26%
Night Futures +3.91%
Source: Market Man's stock story t.me/shmstory
YouTube: Sihwangman TV www.youtube.com/@blueoak1004
This article was rewritten from Shihwangman's Stock Story Telegram post with the author's consent. All content may contain errors and cannot be used as a basis for buying or selling as it is not a recommendation to buy or sell. The content of this post cannot be used as legal basis under any circumstances.
