Market Overview

U.S. August core CPI rose more than expected on a month-over-month basis, leading the market to believe that the Fed will not make a sharp rate cut next week. U.S. stocks initially dropped, with $Dow Jones Industrial Average (.DJI.US)$ plunging over 740 points at one point and $NASDAQ 100 Index (.NDX.US)$ falling as much as 1.6%. However, Nvidia's CEO Jensen Huang emphasized the overwhelming demand for AI chips, which drove $NVIDIA (NVDA.US)$ 's stock higher, sparking a V-shaped reversal in U.S. stocks. In the end, after early losses of over 1%, all major U.S. indices rebounded to close higher. $Nasdaq Composite Index (.IXIC.US)$ surged over 2%, the semiconductor index gained nearly 5%, and Nvidia jumped over 8%, marking its largest single-day gain in six weeks. For the first time since October 2022, both $S&P 500 Index (.SPX.US)$ and Nasdaq 100 fully erased intraday losses of at least 1.5%.

The U.S. presidential debate boosted solar stocks. $Trump Media & Technology (DJT.US)$ dropped more than 10%, hitting its lowest level since its SPAC merger in March.

U.S. inflation data dampened rate cut expectations, with Treasury yields rising after an initial drop. Both 10-year and 2-year Treasury yields increased.

Hurricane concerns led to short covering in crude oil, with U.S. oil surging as much as 3% during the session. Brent crude rose back above $70, recovering from a nearly three-year low. Meanwhile, Russian President Putin instructed his government to explore measures to restrict the export of strategic resources, leading London nickel to close over 2% higher.

Bitcoin saw no significant boost, but it rebounded slightly from its low following the Trump debate.