A period in which the Nikkei Stock Average’s RSI turns upward is being viewed as a sign that the correction is ending. At the same time, concerns over debt at US AI companies and high oil prices are causing market volatility, requiring caution over short-term trends.
In the US market this week, the Dow extended its decline, closing at $51,966.03. The Nasdaq Composite rebounded, gaining 290.85 points to 26,430.89, while the SOX Index rose 179.05 points to 11,316.34, leading movements in semiconductor stocks.
A sharp fall in the bond and share prices of CoreWeave, a neocloud company serving AI data centers, accelerated the decline in the SOX Index, while concerns over the company’s financing costs weighed on the market.
From the 8th through the 14th, CoreWeave’s bond yield temporarily rose to 15.06%. Its share price showed a recovery the day after a 12-session losing streak but remained unstable. The UK’s Barclays pointed to rising financing costs and suggested the possibility of a short-term decline in the share price.
In the oil market, heightened Middle East risks and supply-demand concerns continued. WTI November futures ended trading at $103.66, with sentiment spreading that high oil prices would prolong inflation in the US.
In Japan, the Nikkei Stock Average’s RSI is currently low at 18.67%, but many observers view an upward reversal in the RSI as a potential trigger for the end of the correction. The Nikkei closed at ¥64,075.42, and with moves above the five-day moving average still limited, some expect continued weakness in the market’s upside.