10/22 U.S. stocks mixed amid slump in theme stocks amid sensitivity to Trump comments

The U.S. stock market started steady, awaiting corporate earnings announcements and U.S.-China tariff issues. In particular, some companies, including GM (+14.86 percent), showed strong performance after the announcement of earnings, showing positive performance including gains. However, when Trump made mixed remarks over the U.S.-China summit, the market did not have strong physical strength, and the results were mixed with the digesting of sales by industry and stock. In particular, some theme stocks, including AI services, quantum computers, nuclear power, and gold, were sluggish (+0.47 percent), Nasdaq -0.16 percent, S&P 500 +0.00 percent, Russell 2000 -0.49 percent, Philadelphia Semiconductor Index -0.67 percent)

*Variants: Tilt and Unhealthy Markets

The U.S. stock market has been on a strong rise recently, hitting an all-time high. Positive earnings expectations drive this, with quarterly EPS forecasts citing 11.8% year-on-year growth in the third quarter, according to market researcher FactSet. In addition, the fourth quarter will slow to 7.8%, but double-digit growth is expected in 2026. However, the 12-month Fwd PER of the S&P 500 is 22.4 times higher than the 10-year average of 18.6 times, and it is incomparable to the pre-pandemic 16 times when it poured in massive liquidity in 2020. After all, the current stock market can see that expectations for improved earnings are being boosted by the large liquidity put in after the pandemic.

In the meantime, it is worth noting that the conference board’s leading economic index is slowing down for a long time. In the past, such a long-term slowdown occurred in early 1990, early 2000, early 2007, and early 2019. The stock market continues to rise despite this economic slowdown, and some in the market say that the “pivot” is based on AI, leading the market to focus on related stocks. The particular concern is that the simple “AI” content continues to rise sharply. Even though there is no sales, if the related content is grouped into a theme, there is also a burden to see a surge.

After all, the current stock market is fluctuating according to the concentration of the “pull phenomenon,” which is also seen in various financial products, including gold. Therefore, performance results that are appropriate for the current stock market must be produced, and fluctuations are progressing accordingly. That is why the market moves sensitively to every statement from Trump that will determine momentum. Trump mentioned in his speech that he is scheduled to meet with President Xi Jinping two weeks later in the first half of his speech, but when he mentioned that a summit with China might not take place at the end of his speech, he focused more on areas outside the market, such as sales being held

*Feature Item: A slump in alienation such as AI service and quantum computer

Automobiles: GM Rises on Expectations of Lower Tariff Costs
Tesla (-1.08%) is sluggish despite the increase in weekly insurance registrations from 11,300 units to 16,500 units in China ahead of its earnings announcement. Rather than new issues, the market is already predicting that it will exceed expectations in its performance, which is estimated to have affected the assessment that there is a possibility of going on sale if it fails to report significantly improved performance. GM (+14.86%) rose sharply when it released earnings results such as sales and operating profit that exceeded expectations. In particular, it is also positive that it announced that the cost of tariffs has decreased and that it will be offset by 2026. Ford (+4.75 percent) and Stellantis (+4.02 percent) also rose, reflecting expectations for a reduction in tariff costs. Quantumscape (-3.84%) fell due to GM’s announcement of a reduction in the electric vehicle sector. Lithium-related stocks such as Albemarle (-4.99 percent) were sluggish due to a sharp drop in the mining sector.

Semiconductors: Slumped by intensifying competition and profit-taking sales
Nvidia (-0.81%) and AMD (-1.05%) are sluggish after Dutch start-up Axelera recently unveiled Europa, a new inference processor. Europa is designed to run AI models in real-world environments, such as factory sites, surveillance systems, or autonomous robots that need to process data immediately, unlike training chips, and will be manufactured by Samsung Electronics’ foundry. In addition, Nvidia has signed up to 5 million chip leases with OpenAI, and news of Nvidia’s guarantees has also been affected. Broadcom (-1.88%) fell due to issues of profit-taking sales amid constant regulatory risks, such as being re-examined by the EU Commission for possible violations of antitrust regulations for changes in licensing policies after the acquisition of VMware.

Semiconductor, AI Services: Profit Realization
Micron (-2.17%) released DDR5 Pro Overclocking (OC) 6400 CL32 Gaming DRAM, but fell. In general, it can be said that the realization of AI-related gains was largely due to the realization of AI-related gains. AI service companies such as Marvell Tech (-1.84%), Coreweave (-1.57%), Big Bear AI (-5.09%), Paladine AI (-2.59%), Recurrence Pharma (-8.53%) and Soundhound AI (-4.35%). Tempus AI (-3.62%) was sluggish as TD Cowin downgraded its investment rating to $88 from Buy. Most other AI-powered biotech companies, such as Apsi Copper (-4.06%) and Schrödinger (-5.05%), fell. Texas Instruments (+0.70%) are down around 7% after-hours on disappointing future outlook after-hours. Most semiconductor companies are also down after-hours

Nuclear, uranium, electricity grids: Revenues for profit-taking sales fall
Nuclear-related companies such as Oclaw (-12.33%), NewsCale Power (-13.21%) and NanoNuclear (-8.64%) reported some downward investment opinions, but it is estimated that the participation in profit-making sales affected the market, reflecting the sharp rise of even companies with little sales. Nuclear power companies such as uranium energy (-10.65%), Centrus energy (-5.72%), and Energy Fuels (-8.64%) also declined due to profit-taking. Power grid companies such as Vistra (-3.97%) and Constellation Energy (-3.03%) were also sluggish due to profit-taking. In particular, the huge energy demand needed to power data centers is expected to come