Chip Stocks Lead Strong Rebound in U.S. Equities and Bitcoin

Market Overview

Markets staged a powerful rebound yesterday as dip-buying momentum surged, fully erasing the prior days losses for both the S&P 500 and Nasdaq Composite. Investor enthusiasm for artificial intelligence (AI) once again outweighed concerns about a potential bubble, pushing the Nasdaq to close above the 23,000-point mark for the first time in history.

Chipmakers led the rally — AMD soared over 11%, NVIDIA gained 2.2%, and Dell climbed more than 9%.

In the U.S. Treasury market, yields on the rate-sensitive 2-year note hit a new intraday high, rising more than 2 basis points following the release of the Federal Reserve meeting minutes.

In currencies, the Japanese yen fell for the fifth consecutive session, weighed down by fiscal spending concerns.

Meanwhile, Bitcoin rebounded sharply, briefly touching $124,000, recovering most of Tuesdays decline.

Among commodities, gold prices surged past $4,000 per ounce for the first time ever, fueled by expectations of a U.S. government shutdown and potential rate cuts. Silver spiked as much as 3.7%, while WTI crude oil rose modestly by 0.36% after an intraday pullback.

Hot Topics Ahead

● IMF and Bank of England Sound the Alarm

The International Monetary Fund (IMF) and the Bank of England (BoE) both warned that the markets optimism over AI-driven productivity gains could reverse abruptly, potentially triggering global financial turbulence.

The BoE compared the current sentiment to conditions ahead of the 2000 dot-com bubble, highlighting the risk of a sudden correction across global markets. Analysts noted that these remarks represent the clearest official warnings yet from global institutions about a possible AI-fueled asset bubble.

● Argentina Faces Cash Crunch Amid Currency Crisis

Yields on Argentinas Lecap bonds due November 28 soared to 87%, up sharply from 51% late last week.

According to two sources, the Finance Ministry sold $320 million in the spot market — marking its seventh consecutive intervention day — to defend the peso.

President Mileis administration has reimposed partial capital controls and intervened in futures markets to curb currency depreciation as the nation struggles with a deepening liquidity shortage.

Key Events to Watch (GMT+8)

19:30 – EU: ECB releases minutes from the September monetary policy meeting

20:35 – EU: Fed Governor Michelle Bowman delivers remarks

(TBD) – US: Initial Jobless Claims (for the week ending October 4)

00:45 – US: Fed Vice Chair for Supervision Michael Barr speaks on economic outlook