Calm after CoreWeave shock, but for how long?
SPY•Asian stocks rose into the weekend after Thursday’s steep losses, with South Korea’s KOSPI up about 3% and Japan’s Nikkei up 1.5%; US and European stock futures also edged higher. Investors remained focused on AI-related debt concerns, interest rates and upcoming economic data.
1. Asian shares rebound
Asian stocks rose after Thursday’s selloff, with bargain hunters likely leading the buying. South Korea’s KOSPI gained about 3% after falling nearly 8% in the prior session, while Japan’s Nikkei added 1.5% after dropping about 5%; US and European stock futures also edged higher.
2. AI and rate concerns
Concerns remain about the debt financing the AI boom, following a spike in yields on AI cloud provider CoreWeave debt. Reported progress by China’s CXMT on next-generation DRAM architecture has also weighed on confidence in established manufacturers such as SK Hynix and Micron. Analysts expect volatility to remain elevated as technology earnings arrive over coming weeks and investors assess interest-rate signals.
3. Markets watch data
Indonesia’s shares had their biggest one-day fall since 1998 after MSCI said the market no longer merits emerging-market classification, setting up a downgrade that would force passive funds to withdraw money. Markets currently see about 28% odds of a US rate hike at the end of this month. Friday’s events include final September euro-area and Italian inflation readings, plus US September trade and industrial-production data.
