US Stock Markets Rise as Treasury Yields Fall

Major US stock indices closed higher on the 15th, driven by a sharp decline in Treasury yields and sector rotation. The Dow Jones Industrial Average rose 1.08% to 52,177.69, while the S&P 500 gained 0.33% and the Nasdaq Composite increased by 0.08%.

Despite strong earnings from companies like Anthropic and TSMC, investor caution regarding the high costs and debt burdens associated with AI infrastructure persisted. This led to a rotation of capital from technology stocks into consumer and healthcare sectors, with companies such as Nike and Home Depot leading the Dow's gains.

Cloud computing firm CoreWeave experienced significant volatility, dropping nearly 10% early in the session before rebounding to close up 5.9%. The recovery followed supportive comments from Nvidia CEO Jensen Huang, who stated that CoreWeave’s competitiveness is strengthening daily. However, credit markets remain wary, with CoreWeave’s five-year credit default swap (CDS) hitting a record high.

The 10-year US Treasury yield fell to 5.086%, marking its largest single-day drop since August 1. While the September Producer Price Index (PPI) rose 1.3%, exceeding expectations, the market impact was limited as expectations for a Federal Reserve interest rate freeze at the upcoming FOMC meeting remain dominant.