Although interest rate pressures mounted following the release of stronger-than-expected US employment data, the market is attempting a turnaround as bargain hunting emerges, primarily in sharply fallen AI tech stocks. Even amid lingering anxieties over political regulation, long-term confidence in growth stocks is firmly bolstering investor sentiment.
US October non-farm payrolls came in three times higher than expected, sparking a surge in US Treasury yields and the likelihood of a December rate hike [0, 4, 5].
Following the Democratic victory in the US midterm elections, concerns over tighter regulations on AI data center development and the possibility of congressional investigations into Big Tech have spread [0, 1, 5, 7, 10, 13].
As dip-buyers stepped into semiconductor and AI infrastructure stocks that had plummeted on regulatory headwinds, the Philadelphia Semiconductor Index and the Nasdaq rebounded [0, 1, 3, 4, 5].
Driven by the surprise jobs report, the US Dollar Index rose over 0.7%, marking its largest gain in seven weeks [4, 5].
Nvidia's board of directors has formed an independent special committee and initiated an internal investigation into CEO Jensen Huang's China-related security controversy and espionage allegations [2, 9].
Investor sentiment across tech stocks partially recovered as strong bargain hunting flowed in following an excessive plunge in U.S. semiconductor shares. However, rising Treasury yields driven by solid U.S. employment data are once again capping the rebound amid renewed concerns over Federal Reserve interest rates.
Inflow of bargain hunting and technical rebound following an excessive plunge in U.S. semiconductor stocks
Rise in U.S. Treasury yields and highlighted possibility of Fed rate hikes following strong U.S. October employment data
Heightened domestic stock market volatility due to a sharp plunge in the KOSPI and KOSDAQ indices
Wait-and-see stance on inflation and monetary policy following the release of the U.S. October Consumer Price Index (CPI)
Widening gap between preferred and common stocks in the domestic stock market, with average discount rate reaching an all-time high
