Hewlett Packard Enterprise

Iggy’s Journal: Dow Rebounds on Thursday While AI-Linked Shares Lag

Fri 16 Oct 2026 | Morning

The Numbers

Wall Street closed higher on Thursday, after SGX had closed. The Dow ended at 52,177.69 (+556.21, +1.08%), the S&P 500 at 7,744.06 (+25.12, +0.33%) and the Nasdaq at 26,713.03 (+20.16, +0.08%), per AP, the Economic Times and MK News. AP says buyers favoured value and cyclical shares after Wednesday’s sharp drop, while AI-linked shares lagged: Nvidia fell 1.8%, Dell 6.9% and Hewlett Packard Enterprise 7.1%. AP adds that TSMC sounded cautious on 2027 and that investors are looking at the high debt loads these companies carry as borrowing costs rise.

Charles Schwab notes that US wholesale prices rose 0.7% in September, which kept expectations of higher rates in place.

The STI closed at 5,403.50 on Thursday, down 19.83 points or 0.37% (SGX, via Trading Economics). CICT has set 29 October for its third-quarter 2026 business update (AD HOC NEWS).

My Personal Take

The gap between the Dow and the Nasdaq is the number I would read first. One rose 1.08% and the other 0.08%, a full percentage point apart, so the rebound was in value and cyclical shares, not in the AI-linked names. The reason AP gives for the weak AI-linked shares is the part that matters here: investors are asking how much debt a company carries when borrowing costs are higher. A REIT unitholder asks the same question about the trust’s debt. CICT reports on 29 October, and gearing and interest costs are the lines I will read first.

Cheers, Iggy 🦖

Not financial advice. Iggy’s Forensic Compliance Standards apply.

$Netlist, Inc.(NLST.US) | Netlist ITC Action: - $Micron Tech(MU.US) $Broadcom(AVGO.US) $Alphabet(GOOGL.US) $NVIDIA(NVDA.US)

We are seeing the start of sell off especially in the AI and hardware sector, as AI leaders like Altman calls for slowdown amidst the rapid AI development and growth over the past years. Recently, there have also been reports of slightly renowned former scientists from various AI companies calling out the dangers of rapidly developing and adopting AI, claiming that they may replace humans faster than you think

Hot core CPI (+0.3% MoM) virtually guarantees a September rate hike—sticky short-term inflation forces the Fed to prioritize pricing stability over cratering consumer sentiment. With 10-year yields nearing 5%, persistent inflation pressures continue to overshadow broader macroeconomic concerns.

The market has priced in a Fed hike with near certainty. Everybody thinks that the Fed will hike. What if it doesn't? What if Kevin Warsh holds rates steady? We giga pump straight to the moon?

Bitcoin holds well as president Trump officially agrees to new bipartisan crypto Clarity Act ethics provisions.☺️

President Trump's agreement to the ethics provisions in the Digital Asset Market Clarity Act is widely viewed as a major positive catalyst for the cryptocurrency industry.☺️

Watch out for Clarity Act approval tomorrow at 2:15 p.m. Eastern Time.. BTC may rally (My personal view) .

August’s core CPI reading indicates persistent underlying price pressure, despite the annual rate easing to its lowest level in years. The upside monthly surprise materially strengthened expectations of a September rate hike, while the shift in Goldman’s forecast reinforces the more hawkish policy outlook. The rise in the 10-year Treasury yield toward 5% increases discount-rate pressure on equities, particularly high-valuation and long-duration growth stocks. Markets may remain sensitive to upcoming inflation and labor data, as confirmation of persistent inflation could sustain higher yields and limit expectations for monetary easing.

Many things happening now and the market is pricing in multiple events.

The recent comments by Sam Altman, Dario, Elon Musk for AI to “slowdown”, FOMC this week, inflation from Iran war and the bond yield rising.

Looks like we are in for a tumultuous time 😞

Am secretly enjoying the discounts for REITs unlike the past where rate hikes makes me nervous and unsettled. At the start of the year, many were wondering if the REIT boats would come back to port to pick them up. Are they still buying the ticket to board? For those onboard, are they still chilling on the ships' deck chairs or they are bailing out in their lifejackets, leaving their suitcases aboard?

Goldman flipping to a September hike after one hot print feels reactive. If the Fed moves with the 10-year already at 4.957%, they risk breaking something in credit. That sets up a sharper slowdown in Q4 and a forced pivot later.