The article argues that early-October weakness was a correction within an AI theme rather than across the market: the Nasdaq fell about 4.5% over the week, while the Dow gained about 0.7% and finished above 52,000, as CoreWeave, carrying roughly $50 billion in debt, sold off and Nvidia holds about a 10% stake. Citing Jeffrey Hirsch, it notes the nine months from Q4 of a midterm year through Q2 of the next year are historically the strongest of the cycle, with the Dow, S&P 500 and Nasdaq averaging gains of 19.3%, 20.2% and 29.4% versus declines of 2.0%, 2.5% and 6.6% in the preceding span. The piece cautions that markets are near record highs with the 10-year yield above 5%, so seasonality does not remove risk. Zacks Director of Research Sheraz Mian has the S&P 500 tracking 24.6% earnings growth on 11.7% higher revenues, with nearly 80 index members reporting this week.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
CoreWeaveNvidiaNasdaqmidterm elections
Open a keyword to see other news on the same topic.
Related tickers and likely impact
NVDA
• NeutralNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.2T |
| Close on 10/21/2026 | 221.97 |
| Change that session | +2.54% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Baystreet . ca - When Might October Nasdaq Correction End ?
The Nasdaq Composite (QQQ ETF) is 6.96% below its 52-week high after falling 5.52% last week, close to the 10% threshold for a technical correction. The article says high oil prices, sustained by Iran's control of traffic through the Strait of Hormuz, keep September CPI and PPI rising, and that Iran wants higher oil prices to hurt the Republican Party before the midterm elections, so the correction in beaten-down stocks may continue. CoreWeave (CRWV) lost 25.21% last week, closing just 3% above its yearly low, while bears holding a 17% short float bet its $50 billion debt is unsustainable. Nebius (NBIS) fell 25% and Twilio (TWLO) dropped 15.6%, while Autodesk (ADSK), Salesforce (CRM) and Adobe (ADBE) drew buying. The article suggests volatility may ease after the midterms.
- llm-d 1.0 Advances Open, Cost-Efficient AI Inference for Production Scale
The llm-d project announced llm-d 1.0, an open source milestone designed to help organizations deploy and scale large language model inference more efficiently. Recent demonstrations showed cost reductions of up to five to 10 times for context-heavy agentic workloads and three times greater output throughput. The release adds multi-tenant quality of service, zero-downtime operations, coordinated management of prefill and decode replicas, a stable v1 configuration API, and agent-aware serving with session-aware routing. Founded in 2025 by Red Hat, IBM, Google Cloud, CoreWeave and NVIDIA and now governed by the CNCF, the project has more than 500 contributors from over 25 organizations. In one IBM Research use case, the setup achieved 11.5 times lower inference cost than an all-proprietary configuration, with a prefix-cache hit rate of about 98%.
- Is Nvidia (NVDA) Stock Priced Right?
Chip stocks fell sharply last week, and Nvidia (NVDA) dropped nearly 2% as investors worried that heavily indebted AI companies would face higher borrowing costs after bond yields jumped for CoreWeave, a cloud company Nvidia backs. CoreWeave shares had fallen more than 15% the day before. Nvidia's own numbers show no sign of that stress: it sold $96.2 billion of chips and systems in the quarter ended July, up 106% from a year earlier, mostly from data center sales. Its net profit margin was 63.66% over the past 12 months, and management expects $108.0 billion in revenue next quarter, assuming no data center sales to China. The key risk is whether customers can keep paying for chips if interest rates stay high, and the planned partnerships to bring over $500 billion of outside capital into AI infrastructure have not yet become definitive agreements.
- Coreweave's Shock Absorber Function Will Be Tested Again……and Again
CoreWeave (CRWV) carries a backlog of about $104 billion and second-quarter revenue rose 112.3% to $2.58 billion, but its shares fell 11.91% in the latest session as AI debt fears weighed on the stock. The company raised prices about 25% and guided full-year revenue to $12.4–13.2 billion, yet interest expense rose to $640 million from $267 million and free cash flow was -$5.74 billion. Its 2026 capex is guided to $35–39 billion, and customer concentration in Meta, OpenAI and Microsoft adds pressure. At $61.39, the stock trades near its 52-week low and is down 56.69% over one year, and the article says the key signal to watch is when operating income catches up with interest expense.
- Why I am taking the other side of the trade that crushed the market Friday
The author argues that last week's sell-off, especially Friday's, does not mean the data center and AI 'super-cycle' is over. He suggests the selling may instead reflect unwinding positions and the collapse of a hedge fund that borrowed billions from a firm that has not yet disclosed its losses. He notes that semiconductors fell nine straight days and CoreWeave's corporate bond yields spiked, arguing the bond market is squeezing debt-funded buyers. He defends Nvidia and CEO Jensen Huang, saying Nvidia's funding of AI companies differs from the circa-2000 'vendor finance' that benefited vendors whose customers did not need their products. He believes AI demand is real, citing OpenAI, Anthropic and Google's Gemini, which have monetized AI at scale.
- European Equities Close Higher On AI Optimism
European stocks closed broadly higher on Friday, with several sectors gaining support ahead of quarterly earnings due early next week. Higher oil prices weighed slightly, but easing concerns about interest rates and AI-related investments kept the mood positive. Nvidia CEO Jensen Huang's comments defending the financial health of AI computing supplier CoreWeave Inc. also helped sentiment.
Related markets
Latest news
- Musk's wants to merge SpaceX and Tesla: Here's what to know
Musk said SpaceX and Tesla have formed special committees to study a merger, which would be worth about $3.5 trillion combined and would be the largest corporate deal in history. SpaceX, valued at about $2 trillion after a record listing this year, absorbed Musk's AI startup xAI in February, while Tesla is valued at about $1.5 trillion. Musk holds about 82 percent of SpaceX's voting power but only about 20 percent at Tesla. Dan Ives puts the odds of a deal at 90 percent by early 2027, though Musk called the requirement of a majority of all Tesla shares 'quite a high hurdle'. Loyal retail investors hold an estimated 25 to 27 percent of Tesla shares, and legal obstacles appear slight because both companies moved their incorporation to Texas from Delaware.
- CoreWeave and Nebius Stocks Are Crashing. Time to Buy the Dip?
Shares of Nebius and CoreWeave each fell 25% in the week of October 12 to 16. The sell-off stems from the yield on CoreWeave's debt in the secondary market surging to 15%, versus roughly 5% on Treasuries, which pushes the debt into 'distressed' territory and signals doubts about its ability to meet obligations. Nebius sold off in sympathy as a fellow neocloud company. The bigger concern is that both companies must keep issuing debt to fund data centers, and if yields are high at issuance, the assumption of nearly unlimited cheap capital could be challenged. The author says it is unclear whether now is the time to buy.
- Disney’s multiplatform Super Bowl plan frustrates ABC affiliates
ABC station owners are irritated that Disney is airing the Super Bowl across several platforms, including Disney+, ESPN2, NFL Network and ESPNU, even though the game is already on ABC and ESPN. A station group CEO estimates that the combined platforms could cut broadcast ad revenue by up to 35% compared with last year. Local affiliates typically earn about 3% of annual ad revenue from the Super Bowl and pay network owners reverse retransmission fees, but Disney+ lacks geofenced ad insertion, so affiliates cannot sell ads to streaming viewers. Disney says national commercials will be identical on all platforms and that streaming major live events is standard industry practice. Super Bowl LX drew 125.6 million viewers in February.
- Meta’s deal to keep Zuckerberg in California adds fuel to wealth tax debate ahead of election
Meta says Mark Zuckerberg will remain in California for eight years and has created a new stock plan that could help cover his taxes if Proposition 40, a 5% tax on Californians worth over $1 billion, passes on Election Day on Nov. 3. According to a filing released with its third-quarter earnings, Meta will issue non-voting Class C shares starting in January, and Zuckerberg can sell or transfer up to 20% of the shares granted to him without affecting his majority voting control. The filing says Zuckerberg’s leadership is crucial to the company’s growth and its AI ambitions, including Meta Superintelligence Labs. Most of the tech industry opposes the measure, while a recent Citrin-Politico poll found 46% in favor and 43% against, suggesting it may fall short of the majority support it needs.
- Nasdaq sell-off: A momentum unwind 'for the record books'
Matt Stucky, chief portfolio manager for equities at Northwestern Mutual Wealth Management, calls Thursday’s sell-off in the Nasdaq Composite (^IXIC) a momentum unwind “for the record books.” He says the market spent the first half of 2026 driven by a beta and momentum trade led by semiconductors, but in the third quarter, as rates rose, money shifted into quality stocks. He does not think the sell-off is justified by fundamentals, arguing that institutional portfolio managers swapping out of factor positions can drag down whole baskets of stocks. In semiconductors, spot rental rates for Nvidia Blackwell chips are higher than a month ago, showing tightening compute supply, even as financing costs rise and investors worry about neocloud business models and the rising cost of insuring their bonds.
- Dune launches real-time data feeds covering 200 onchain trading venues
Blockchain analytics platform Dune has launched real-time market data feeds covering more than 200 onchain trading venues, aiming to bring this data into the systems of traditional financial institutions. The feeds draw trade data from 12 blockchains, including Ethereum, Solana and Base, about one second after execution, covering both spot trading on decentralized exchanges and perpetual futures on Hyperliquid and Lighter. Early clients include quant funds, market makers, asset managers and bank trading desks, which use the data to assess liquidity and compare prices, though Dune did not name them. Meanwhile, the tokenized stock market has grown sharply, with distributed value reaching $3.58 billion, but 16 companies, including Microsoft, Alphabet and Goldman Sachs, have objected to their shares being traded on OKXICE’s proposed platform, and liquidity remains fragmented.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.