US Stock Market Outlook: Core CPI Drops, Intel Surges, Quantum Stocks Rise

US Economic Indicators and Market Reactions

On Friday, the US reported a year-on-year core CPI of 3% for September, slightly below the expected 3.1%. The month-on-month core CPI also came in at 0.2%, lower than market forecasts. This has led traders to increase bets on two more interest rate cuts by the Federal Reserve this year.

Market Movements

• Major US stock index futures surged, with Nasdaq futures rising by 1%.
• Gold prices jumped by $30 in a short time.
• Cryptocurrencies also saw a brief uptick.

Notable Stock Performances

• Star Tech Stocks: Most rose in pre-market trading, with Intel up 7% post-earnings, AMD and Micron both gaining over 2%, and Google increasing by over 1%.

• Popular Chinese Stocks: Most saw gains, with Pony.ai up over 2%, Pinduoduo up over 1%, and Baidu nearly 1% higher.

• Quantum Computing Stocks: QBTS rose nearly 7%, LAES up 4%, and IONQ nearly 4%.

• Nuclear Power Sector: OKLO gained nearly 5%, SMR up nearly 4%, and VST and CEG both over 2%.

• Crypto Mining Companies: Bitfarms surged over 10%, while Cipher Mining and IREN rose nearly 7%.

Corporate Developments

Nvidia and Uber Collaboration

Nvidia announced a partnership with Uber to advance autonomous vehicle technology, leveraging large-scale real-world driving data.

Google and Anthropic AI Chips

Google will supply Anthropic with up to 1 million AI chips, significantly expanding its TPU chip usage to support the next generation of Claude models.

Goldman Sachs on Alibaba's Capital Expenditure

Goldman Sachs raised its capital expenditure forecast for Alibaba to 460 billion yuan, driven by surging AI demand.

Oracle's Debt Financing

Oracle is set to launch a $38 billion debt issuance to fund its data centers, marking the largest such transaction for AI infrastructure to date.

Intel's Strong Q3 Performance

Intel reported Q3 revenue of $13.65 billion, a 2.8% year-on-year increase, and returned to profitability with an adjusted EPS of $0.23.

Newmont Mining's Q3 Results

Newmont Mining's stock fell 6.6% despite strong Q3 earnings, as Q4 cash flow is expected to be negatively impacted.

Sanofi's Q3 Profit

Sanofi's Q3 profit exceeded expectations, driven by strong demand for its Dupixent drug.

Federal Reserve and Market Predictions

JPMorgan and Bank of America predict the Federal Reserve will announce an end to its quantitative tightening next week, earlier than previously expected.

Hedge Fund Investments in AI

Goldman Sachs noted that hedge funds have increased their exposure to AI investments, particularly in semiconductor stocks.

Trade Relations with Canada

President Trump announced the termination of all trade negotiations with Canada due to alleged deceptive advertising practices.

JPMorgan's Crypto Strategy

JPMorgan plans to allow Bitcoin and Ethereum as collateral by the end of the year, further integrating cryptocurrencies into the financial system.

Record Inflows into Gold Funds

Gold funds saw record inflows of $8.7 billion in a week, pushing total inflows over the past four months to $50 billion.