![[Market Man's Load Briefing] October 15th, CPI and Coreweave bearish due to fears](https://media.markettimes.co.kr/%EC%8B%9C%ED%99%A9%EB%A7%A8-4-800x600.webp)
US CPI slightly exceeds expectations... Due to the burden of interest rates, listings centered on technology stocks expand. Coreweave plummets by 15%, corporate bonds at 77 cents... Concerns over AI data center funding spread
Key market trends
- ① CPI exceeds expectations… Interest rates burden on technology stocks
The U.S. consumer price index (CPI) in September rose 0.6% from the previous month and 3.7% from the previous year, exceeding market expectations by 0.1% points.
Core CPI increased by 0.3% compared to the previous month and by 2.6% compared to the previous year.
The monthly headline CPI rise was the largest in five months, with rising energy prices pushing up prices.
Gasoline prices soared 34.2% compared to the previous year and accounted for about half of the monthly CPI increase.
There are mixed opinions in the market, with some saying that the impact on the October FOMC decision will be limited as the difference from expectations is not large, and others saying that we should be wary of the possibility that energy-related price increases may become entrenched.
Government bond interest rates soared immediately after the CPI was announced, but then changed direction to buying safe assets due to the decline in the stock market, reaching 5.19% based on 10-year bonds.
- ② Coreweave plummets by 15%… Shifting focus from AI investment to 'funding'
AI data center company Coreweave plunges 15% due to concerns about financial soundness
Corporate bonds maturing in 2032 fell to 77 cents per dollar of face value based on TRACE, increasing concerns about rising funding costs.
As of the second quarter, Coreweave's interest expenses increased from $270 million a year ago to $640 million, and total debt increased from $15 billion a year ago to $52 billion at the end of June this year.
In the process of investing massive amounts of money to expand data centers, doubts have grown over whether actual profitability can cover the procurement costs.
Related stocks such as Oracle and Nevius also fell.
Coreweave's position is that it is a temporary phenomenon that occurs before the data center is fully operational and that there are no problems with the business model, customer base, or execution ability.
- ③ Semiconductors are weak again... Funds moved to defensive stocks
Major semiconductor stocks fell due to concerns over Coreweave and interest rate burden.
ASML raised its full-year earnings outlook but was weak after disappointing third-quarter sales.
The company maintains confidence in long-term growth, saying that customers are already inquiring about equipment supply for 2029-2030.
SK Hynix ADR also fell below the public offering price.
On the other hand, defensive industries such as pharmaceuticals, energy, and consumer staples rose.
Moderna, Eli Lilly, and Gilead showed strength, while Berkshire Hathaway rose for 10 consecutive trading days.
Market Man's Perspective
Recently, the domestic stock market has been showing greater volatility than the United States. In the United States, when technology stocks fall, funds are moving into industries that have been neglected, but in Korea, when Samsung Electronics and SK Hynix fall, the entire index is shaken again and again.
Interest rates and oil prices, rather than corporate performance, are at the center of the recent weakness. If both indicators rise, the relative attractiveness of the Korean stock market decreases for Foreign Investors and becomes a reason to sell stocks with high market capitalization. In fact, recent foreign selling is also focused on stocks with high market capitalization.
The Coreweave incident is not a sign that demand for AI itself has subsided, but rather a sign that caution has increased regarding the financing and profitability required for large-scale data center investment. Companies' performance is still exceeding market expectations, and no significant changes have yet been confirmed in their long-term AI-related investment plans.
In Korea, credit-related listings are also a burden. If the index stays below the flat range, as it has recently, volatility may increase again as volume increases to avoid contrarian trading in the latter half of the day. As the number of stocks with large declines regardless of performance has increased, it is necessary to look at the trends of each stock, focusing on existing leading industries and policy and investment-related stocks.
Today's checkpoint
Supply and demand: Foreign selling intensity after MSCI Korea Index -4.04%, overnight futures -2.89%
Semiconductor: Impact of Coreweave financial concerns on domestic semiconductor stocks such as Samsung Electronics and SK Hynix
Interest rates: U.S. 10-year note surged immediately after the CPI announcement and fell to 5.19%
Oil prices: International oil prices rose to the $95 range following the news of the attack on the Hormuz ship.
Credit: Whether or not to withdraw counter-trading volume at the end of the market
Key indicators
Dollar Index 102.53 (+0.35%)
International oil price $95.09 (+1.01%)
Volatility Index 16.87 (+10.48%)
US 10-year Treasury bond interest rate 5.19%
MSCI Korea Index -4.04%
Night Futures -2.89%
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.
