Selling in AI and semiconductor-related stocks prevailed in US equities, while buying in consumer stocks and other sectors continued. The Japanese market rebounded alongside developments in the Japanese, US and Chinese markets, although some viewed the move as no more than a technical rebound.
Heavy selling in AI and semiconductor-related stocks continued in the US equity market, while funds flowed into consumer-related and healthcare stocks. The Dow Jones Industrial Average edged lower on 16 October from the previous day, as movements in long-term interest rates and crude oil affected market sentiment.
Uncertainty surrounding AI infrastructure company CoreWeave intensified following a sharp decline in its share price and a rise in corporate bond yields. Market participants cited the profitability of AI investment and the sustainability of funding as concerns, with selling reportedly spreading to other AI-related stocks.
In the Chinese market, the Shanghai Composite edged higher. While falling US long-term interest rates and movements in US equities brought some relief buying, uncertainty remained over the outlook for economic indicators.
In the Japanese market, the Nikkei 225 rebounded, up ¥898 from the previous day. Although dip buying in AI and semiconductor-related stocks provided support and many stocks in the TSE Prime Market attracted buying on weakness, some continued to view the sustainability of the technical rebound as uncertain, depending on developments in the US SOX index.