U.S. PPI Exceeds 6%, Fueling Rate Hike Fears as Crypto and Stocks Recover

Huo Xing Finance reports: On the morning of October 16, U.S. September PPI rose 6.3% year-over-year, hitting the highest level in over four years. This data further reinforced expectations of rate hikes, causing brief declines in U.S. stocks and cryptocurrencies. However, the market quickly absorbed this negative news, with risk assets rebounding rapidly after the initial sell-off. Ultimately, all three major U.S. stock indices closed higher: the Dow Jones rose 1.08%, the Nasdaq gained 0.08%, and the S&P 500 increased 0.33%. The Philadelphia Semiconductor Index fell 0.88%, narrowing its losses significantly from intraday levels, but marking its seventh consecutive day of decline. Among individual stocks, according to BIT (bit.com) market data, CoreWeave—affected by default rumors—reversed from an intraday drop of over 8% to close up 5.94%. On the news front, Jensen Huang stated that CoreWeave’s capabilities are improving daily, its financing costs are actually declining, and he does not believe this data center operator requires NVIDIA’s intervention. NVIDIA fell 1.84%, while Intel dropped 2.80%. Storage stocks also saw their losses narrow but failed to turn positive; SNDK closed down 0.61%. According to market data, Bitcoin briefly dipped below $80,000 last night before quickly rebounding and is currently trading at $82,285.10.