Stock Market Dow Jumps as Treasury Yields Sink
U.S. stocks recovered on Thursday as Treasury yields fell and chip stocks pared earlier losses. The Dow Jones Industrial Average rose nearly 600 points, while…
U.S. stocks recovered on Thursday as the stock market Dow jumps nearly 600 points, Treasury yields fell and chip shares pared earlier losses after a technology sell-off tied to concerns about AI financing. The S&P 500 erased losses to finish higher, while the Nasdaq Composite edged up after dropping more than 1% earlier in the session.
The move offered relief after investors pulled back from technology shares and shifted toward bonds. But fresh wholesale inflation data brought another concern into focus: how rising prices could influence the Federal Reserve’s next move.
The Dow Jones Industrial Average rose nearly 600 points, or more than 1%, according to Yahoo Finance’s market coverage. The S&P 500 gained 0.3%, while the Nasdaq Composite ended slightly higher. The 10-year Treasury yield sank to 5.09% as investors sought bonds.
That reversal came after a two-day technology sell-off sparked by worries over debt financing for artificial intelligence-related businesses. Semiconductor stocks recovered some of their earlier losses, although Taiwan Semiconductor Manufacturing Company shares fell 2% despite reporting a record profit and beating estimates amid global demand for AI chips.
AI financing concerns remain
CoreWeave turned positive after Nvidia Chief Executive Jensen Huang voiced confidence in the data center operator. The company’s shares had suffered a 15% rout on Wednesday, with investors concerned about its debt-heavy balance sheet and whether it could expand fast enough to cover rising interest expenses.
“CoreWeave's strength is improving every day,” Huang said at a Bloomberg event in Stockholm, according to Yahoo Finance. “I'm optimistic. Their cost of capital is actually decreasing.”
His remarks helped shift sentiment around CoreWeave, but the broader sell-off showed that investors are scrutinizing the cost of building out AI infrastructure. Companies supplying equipment and construction services also came under pressure, even as some large cloud businesses held steady to higher.
Vertiv fell over 6%, while Comfort Systems and Quanta Services also recorded sizable losses during Thursday’s session. Yahoo Finance reported that six suppliers—Vertiv, Comfort Systems, Quanta Services, GE Vernova, Eaton and EMCOR—had shed roughly $94 billion since Oct. 6, including over $23 billion on Thursday.
Their businesses extend beyond AI. Still, demand tied to data centers supports sales of cooling systems, electrical equipment, power systems and construction services. Whether those suppliers recover alongside their customers may indicate how investors view the prospects for spending on data center construction, Yahoo Finance reported.
Inflation data adds a policy question
September’s wholesale inflation index rose at its fastest pace since 2022, according to the report. That data added to market concerns over the impact of rising prices and the Federal Reserve’s next policy decision, even as falling Treasury yields helped lift stocks.
The day’s rebound was broad enough to pull the major indexes off their earlier lows, but it did not erase the pressure on every AI-linked company. Taiwan Semiconductor Manufacturing Company remained lower, and several infrastructure suppliers continued to struggle.
Investors will now be watching whether the recovery in technology shares extends to the companies building the physical systems behind data centers, while weighing the inflation figures against the drop in Treasury yields.
Source: finance.yahoo.com
