11/10 U.S. stocks close mixed on shutdown progress after falling sharply on anxiety over AI industry

The U.S. stock market has started lower due to the influx of AI bubble related issues. In particular, many companies that have signed contracts with OpenAI have participated in the sale. On top of that, the Nasdaq fell by more than 2 percent due to the shrinking consumer sentiment index. However, AI transactions, which have been shrinking due to massive investment announcements by Meta Platforms during the day and positive comments by some investment companies, are still underway. In particular, some thematic stocks have shown a sharp rebound, indicating that supply and demand are continuing. On top of that, expectations for easing uncertainties have been introduced, with the Democratic Party presenting an advanced agenda to address the shutdown, although the Republican Party refused.

Buying increased after news broke that Sam Altman had written to Trump ahead of the market’s close to extend the Bandea tax credit to the AI industry as a whole, and semiconductor, cloud and AI companies that failed to reflect this were rising after hours (Dow +0.16%; Nasdaq -0.21%, S&P 500 +0.13%; Russell 2000 +0.58%; Philadelphia Semiconductor Index -1.01%)

• Variants: AI Bubble Controversy, Shutdown, Economic Indicators

On Wednesday, the OPenAI CFO hinted at a U.S. government funding guarantee at a conference, but withdrew his remarks Thursday. In response, doubts are growing over how OpenAI, which is currently in the red, will handle the $1.4 trillion AI infrastructure investment currently contracted. In the meantime, the White House AI chief said there would be no government bailout for AI, and that even if one company failed, another company would take over. In the end, it is interpreted that OpenAI will not be involved because other companies have problems even if OpenAI has problems. In the meantime, some analysts say that the “circular investment” structure between OpenAI, Nvidia, and Oracle may have continued to inflate demand. As the theory of the AI industry bubble has been re-emphasized, the index’s decline has widened.

However, the intraday meta platform emphasizes that the data center is key to developing AI products and building “personal superintelligence.” To this end, it announced that $600 billion worth of investment will be made by 2028, suggesting increased capital expenditure. In addition, OpenAI’s insistence on the government to extend the semiconductor tax credit to data centers is also positive. Altimeter Capital CEO Brad Gerstner evaluates the recent decline in technology stocks as a healthy adjustment, denying the opinion that the market is a bubble. Of course, it is predicted that the market could take a breather or have a period of adjustment due to weak consumption by the end of the year. Nevertheless, he emphasized that all three technologies, Internet, social media, and cloud, eventually grew to a much larger scale than expected. In conclusion, although the market may adjust in the short term, the huge long-term trend formed by AI innovation will still exceed expectations and is not in a bubble. The market is positive about the remarks, and the stock market, which had fallen sharply in early trading, is expected to shrink its fall

Senate Minority Leader Chuck Schumer, D-N.Y., has made a new proposal to Republicans to end the government shutdown. The proposal says that instead of Democrats agreeing to pass a short-term government-funded bill, Republicans should agree on a separate bill to extend the enhanced tax credit used to lower health insurance costs in the Obamacare market by one year. This is interpreted as a step back from the Democratic Party’s demand to include an extension of ACA subsidies in the short-term funding resolution, reducing the index’s fall in anticipation of the possibility of progress in resolving the shutdown. Of course, the Republican Party and the White House immediately rejected it, but the market is positive about the possibility of progress in negotiations

Meanwhile, the New York Fed’s household survey showed that inflation fell 0.2%p to 3.2%. Meanwhile, the job market is concerned that employment will expand in the future, with rising unemployment rising 1.4 percentage points to 42.5% and job search prospects down 0.6 percentage points to 46.8%. In the end, prices are falling and employment is cooling, raising expectations for a rate cut by the Fed. Meanwhile, the consumer sentiment index slowed from 53.6 to 50.3. The current situation index fell 4.3p to 52.3, and the expectation index fell 1.3p to 49.0, deepening negative perceptions of the current situation. However, top consumers with large stock holdings are differentiated, with their sentiment improving. In general, weak consumer sentiment ahead of the year-end shopping season increases anxiety about the U.S. economy.

• Featured Stocks: Semiconductors Shrink Fall and Turn Up After Major Theme Stocks Fall sharply

Semiconductors: Nvidia Falls sharply Amid Bubble Controversy, Turns Higher
Nvidia (+0.04%) fell nearly 5% at one point during the day after news broke that the U.S. government would not allow the sale of low-end chips to China while saying it had no plans to export Blackwell chips to China. On top of that, AI bubble issue is also burdensome. However, as Meta Platforms announced massive capital expenditures, it turned upwards due to the influx of backlash buying in the second half of the market. Most semiconductor companies, including AMD (-1.75%), Broadcom (-1.73%), Micron (-0.17%), TSMC (-0.95%), and Ram Research (-1.75%) fell and then narrowed their falls. Intel (+2.39%) rose when Musk said he would cooperate with Intel to develop chips. Western Digital (-0.39%) and Seagate (+0.32%) also declined and turned upward. SanDisk (+15.31%) surged on the back of solid earnings reports. Philadelphia Semiconductor Index fell 1.01%

AI-Related Stocks, Nuclear Power, Power Grounds: Most Drop On AI Bubble Concerns, Most Turn Up
AI server companies such as Super Microcomputer (-1.43 percent) and Coreweave (-2.73%) and cloud-related companies such as Pastry (+5.38 percent) have declined or risen due to the news of Sam Altman’s letter on tax credit. AI service companies such as UI Pass (+1.13%) and C3AI (+2.24 percent) have also succeeded in shifting upward. Tempus AI (-0.74 percent) fell on news of a downward target stock price