Yet another session of mostly sideways action.  Breadth improved on the S&P 500 and New York Stock Exchange, but the NASDAQ saw pockets of carnage as investors questioned heretofore sizzling stories.  Memory and optical stocks, along with neoclouds, took a big hit. They weren’t the only niches to take hits, as more than 500 names closed at new 52-week lows.

But the NASDAQ Composite finished near the all-time high and well above key moving averages.

Watching Oracle

Oracle (ORCL) was one of the top advancers yesterday, which was interesting given concerns about its financial commitments and contracted backlog.  It's simple: if you believe the superintelligence story will unfold as planned, Oracle is a buy, along with other hyperscalers that have performed well.

I’m impressed and shocked by the conviction level among global fund managers in the AI buildout.

Superintelligence Comes to Dating

Remember Bumble? It’s the high-flying dating site that raised billions in an IPO, then let management take a month off to relieve stress (huge red flag). Silicon Valley vets are taking the company private, calling it a “bet on the future of humanity.”

Bet on the Future of the Stock Rally

We get the CPI report this morning, and while October is off the table, it could solidify rate hikes beyond December, or maybe it will allow the FOMC to pause.  I saw this headline about NY Fed President Williams saying no rate hikes. I hope it's true, but the piece was posted yesterday with today’s date - does anyone have a crystal ball?

Today’s Session

The September CPI report came in hotter than expected, led by skyrocketing fuel prices.

Higher airfares stand out as well, but shelter is a bigger issue, making up 35% of overall household expenditures and still accounting for much more in this report than the housing industry is reporting.

Silver lining

Fewer CPI components are growing above 3.0% year over year, and that’s a good sign that I suspect Kevin Warsh appreciates, but the overall number and headlines, especially going into the midterms, will drown out any silver lining.

The pressure on tech remains in place and has begun to feed on itself (CDS rates climbing for key parts of the SI story).

Comments

Concerning your comment on yesterday's show about the press fearmongering about everything. Read Michael Chrichton's "State of Fear". He makes the case that we are constantly subjected to a state of fear by Politicians because that keeps them in office, attorneys because it makes them money and the press because it sells their product. So, I'm not at all surprised that the economic press is doing its doomsday play... Louie Biondi on 10/14/2026 9:06:27 AM

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