Strong 10-Year Treasury Auction Amidst Rate Anxiety

This was interpreted as reflecting market expectations of increased possibility for further rate hikes ahead of the FOMC minutes release. However, after successful Treasury bond auctions and news that helped control the rate increase, Nasdaq's decline was recouped.

Market sentiment reversed as the probability of an October rate freeze exceeded 80%. The FOMC minutes reconfirmed the stance that further rate hikes are appropriate this year, but the number is expected to be limited to one. This aligns with market expectations of about one more rate hike this year.

However, the likelihood of an October rate hike has significantly decreased, with the probability of a rate freeze surpassing 80%. Some market analysts suggest that expectations for excessive rate hikes are easing.

Reuters predicted U.S. interest rates would fall to 5% in three months and 4.9% in six months, raising hopes that rates could peak within the fourth quarter of this year.

While this is slightly higher than the previous September forecast, it suggests a gradual decline in interest rates, which is expected to help resolve some market uncertainties.

Such a rise in expected inflation could limit the speed and extent of interest rate declines.

International efforts to ease upward pressure on oil prices continue, with France proactively committing to release ten million barrels of its reserves.

With new data center supply restrictions emerging as a long-term industry variable, San Francisco has left open the possibility of extending this moratorium for up to two years. There was also a case where Google's data center construction in Finland was halted due to insufficient environmental impact assessment. These moratoriums could potentially be extended for up to two years.

With Google's data center construction in Finland also halted due to insufficient environmental impact assessment, new data center supply restrictions are expected to become a long-term industry variable.

Major companies including OpenAI, Anthropic, and AMD have pledged over $1 billion to the Genesis Mission. The White House will unveil concrete research and development plans at this event to strengthen U.S. AI leadership. This plan involves key AI companies such as OpenAI, Anthropic, and AMD.

In particular, with the announcement of over $1 billion in industry investment pledges related to the 'Genesis Mission,' attention is focused on the content of the event held tonight and market reaction tomorrow.

The issue of war with Iran has effectively entered its final stage. BCA analyzed that market participants have already factored in enough negative news, indicating the climax has passed, and interpreted rising interest rates as a sign of robust growth. It dismissed market pessimism by considering the war issue with Iran as effectively concluded.

While there's a possibility of tax increases after the midterm elections, the likelihood of a bull market ending is considered low, with the analysis suggesting the market is passing its climax because many negative factors have already been priced in by participants.

Restrictions on new data center construction could, in the mid to long term, increase the value of existing data center owners. Furthermore, amid rising GPU rental costs, highly efficient gas turbine (Bloom Energy, etc.) technology is expected to gain more prominence.

The market in October is anticipated to prioritize individual corporate earnings and price target forecasts over macroeconomic headwinds.

Therefore, interest is expected to grow in companies that provide efficient energy solutions or possess existing data center infrastructure.

This unconventional target was received by investors as a repetition of existing valuation logic.

The key will be how well Micron's future performance can sustain this aggressive price target logic.

Micron's stock started lower amid increased market caution as the 10-year Treasury yield surged to 5.36% early in the session. Additionally, demands for profit sharing from the union and strike concerns negatively impacted the stock price.

However, after an article dismissing strike concerns was published, Micron's stock surged and turned positive.

This demonstrates that the market reacted positively to the resolution of the uncertainty surrounding a strike. Investors were sensitive to both the $3,000 price target forecast and the strike issue.

SpaceX is pursuing a massive $40 billion fundraising round. This funding is reportedly intended primarily for purchasing Nvidia's latest chips.

This move comes after Elon Musk declared 'dependence' on Nvidia chips for AI development.

However, the market reportedly views the pursuit of such large-scale debt financing in a high-interest rate environment with some skepticism.

Applied Digital allayed market concerns with a 322% year-over-year surge in annual revenue. The company is a key infrastructure firm specializing in AI and data center design, construction, and operations.

It demonstrated its capabilities by achieving overwhelming results despite concerns about high interest rates and a slowdown in construction. This case exemplifies the growth potential of data center-related infrastructure companies.

Comparable store sales, excluding gasoline and currency effects, grew 7.6%, and the digital segment grew 19%. Digital sales recorded a high growth rate of 19%.

The timing difference of the Labor Day holiday is analyzed to have had a positive impact of over 50 basis points on overall sales. This demonstrates the influence of seasonal factors on retail sales.

Designed to lower coding barriers, this platform, bolstered by AI technology adoption, received a positive market reaction, with its stock rising 1%. This direction aims to lower coding barriers, enabling anyone to easily create games.

Following news of this AI technology adoption, Unity's stock rose 1%, garnering a positive market response. This suggests that AI technology can contribute to improving game development accessibility.

With paid AI subscription service adoption estimated to be less than 10% in the U.S., AI companies are seeking strategies to popularize their services. This highlights the need to lower barriers to expand paid user base.

Meta is seeking service differentiation by leveraging devices and character features. Google and Claude are focusing on alleviating technical barriers and improving accessibility.

These efforts are considered crucial steps for AI services to become more widely adopted by general users, beyond specific expert groups.