Nasdaq 100 swings as strong tech earnings meet rising rate…
By Krisada Yoonaisil
AI summary of the source article
The Nasdaq 100 is swinging as strong AI-related earnings from SpaceX and Super Micro Computer counter persistent US inflation and expectations of further Federal Reserve interest rate hikes.
Why it matters
This matters for technology shares because much of their value is based on profits expected years from now. When interest rates rise, those future profits are worth less today, which can weigh on share prices even when companies are performing well.
Key facts
- US CPI rose to 3.7% in September, and pending home sales fell 7.3% to their lowest level since records began in 2001.
- SpaceX reported third-quarter revenue of $14.6 billion, up 161% year-on-year, posting its first profit since listing in June.
- Super Micro Computer raised quarterly revenue expectations to $18.5-$19.5 billion, up from prior guidance of $14.5-$15.5 billion, citing strong AI demand.
Source excerpt · FinanceFeeds
The Nasdaq 100 (USTEC) is being pulled in two directions. Higher energy prices, linked to the situation in the Middle East, are keeping US inflation high and raising expectations that the Fed will raise interest rates again. At the same time, strong results from SpaceX and Super Micro Computer have renewed interest in technology companies linked to artificial intelligence (AI). Higher borrowing co…