U.S. stocks recovered Thursday after a two-day technology selloff carried into the morning. Buyers moved into defensive and smaller companies, then chip losses narrowed enough to pull the major averages green by the close.

The S&P 500 gained 0.3%, the Dow rose 1.1%, the Nasdaq added 0.1%, and $IWM climbed 1.3%. Eight of 11 sectors finished green. Health Care led at +1.9%, Materials followed at +1.8%, and Energy fell 1.6%. Technology remained down 0.7%.

Yahoo Finance reported Treasury yields tumbled as the flight from debt-heavy AI companies pushed money into government bonds. The 10-year yield fell to about 5.09%, while $TLT gained 1.4%. Taiwan Semiconductor fell 1.8% even after record profit and a 50.9% revenue increase in local currency.

Stocktwits spent the afternoon debating whether AI infrastructure companies can finance everything they promised. $CRWV reversed higher after Nvidia CEO Jensen Huang defended the company, while $WULF jumped 9.4% after Morgan Stanley called it mispriced. Traders also followed Ryan Cohen’s latest GameStop purchase as $GME reached a fresh 52-week high.

Today’s Briefing

Taiwan Semiconductor delivered another record quarter Thursday, but even the world’s largest chip foundry could not outrun the AI selloff.

The RIP: $TSM fell 1.8% on twice its recent volume despite reporting $46.72B in third-quarter revenue and $4.60 in earnings per ADR.

The company’s quarterly release showed revenue jumped 41.2% in U.S. dollars, while net income climbed 68.7%. Advanced chips accounted for 79% of wafer revenue, including an 8% contribution from the new 2-nanometer process. Customers are still fighting for the good stuff. 🧇

Management expects fourth-quarter revenue of $52.3B to $54.3B with a gross margin between 65% and 67%. The problem was outside the factory. Rising borrowing costs and doubts about debt-funded AI spending pushed semiconductor stocks lower, leaving Taiwan Semiconductor down 7.8% over five sessions. Even monster demand has a hard time beating a market suddenly worried about who is paying for it. 🧾

$TSM ticker talk stayed 75% bullish despite the selloff.

Debt fears hit the companies building and renting AI data centers Thursday, then bargain hunters turned part of the wreck into a late rebound.

The RIP: $CRWV ( ▲ 5.94% ) gained 5.9%, $WULF ( ▲ 9.36% ) jumped 9.4%, and $NBIS added 1.3%. $IREN ( ▼ 0.56% ) remained down 0.6%. All four traded on unusually heavy volume.

Reuters reported CoreWeave carries roughly $50B of debt, while the cost of insuring that debt implied an estimated 63% five-year default probability. The company’s own financing list is long: its September offering added $3.7B of convertible notes to a stack that already included five classes of high-coupon senior debt. AI needs power, but power needs money. 🔌

Nvidia CEO Jensen Huang made an optimistic defense of the company on Thursday, which helped shares rebound. Morgan Stanley’s argument that TeraWulf was badly mispriced did the same there. Nebius recovered from a 12% intraday hole, while IREN stayed red and finished its fifth straight session lower.

The group’s businesses and balance sheets are not interchangeable. The market traded them like they were anyway. Stocktwits sentiment finished bullish on the whole lot. 🏗️

ServiceNow bucked Thursday’s technology selloff with a new product designed to tell corporate AI agents exactly what they can access and do.

The RIP: $NOW ( ▲ 6.14% ) rallied 6.1% to $148.57 on 1.6 times its recent volume, recovering most of Wednesday’s 8.6% drop.

The company’s new AI Passport gives businesses a way to verify an agent’s identity and permissions during a workflow. That includes agents built outside ServiceNow and servers using the Model Context Protocol. The product is basically corporate badge access for software that acts on its own. 🤖

KFC ended a roughly four-decade U.S. beverage relationship with PepsiCo and chose Coca-Cola for its 3,718 domestic restaurants.

The RIP: $PEP fell 0.7%, $KO gained 0.2%, and $YUM rallied 2.8% after the agreement was announced Thursday.

Coca-Cola products will begin arriving at KFC’s U.S. restaurants in January, with the transition scheduled to finish by spring 2027. Financial terms were not disclosed. PepsiCo will continue supplying Taco Bell and KFC’s larger international operation, according to Reuters. 🥤

GameStop CEO Ryan Cohen bought another block of shares this week, extending an insider-buying streak while the videogame retailer traded near its highest level in a year.

The RIP: $GME ( ▲ 3.2% ) climbed 3.2% to $28.02 and touched a fresh 52-week high of $28.30. Volume reached 12.3M shares, slightly below its recent pace.

Cohen’s Form 4 filing showed he purchased 844,130 shares Tuesday at $26.75 and $27.00, spending roughly $22.8M. He directly owned 42.49M shares after the transactions. That was buying strength, not rescuing a collapsing stock. 🛒

It was Cohen’s second disclosed purchase in October. The latest filing raised his total ownership, including shares underlying warrants, to roughly 9.1%, according to Reuters.

Traders noticed. Stocktwits sentiment reached 66% bullish on high message volume, while shares finished up 10.8% over five sessions. The move did not come with the explosive participation usually associated with GameStop rallies, but Cohen kept adding as his purchase price climbed. 🎮

September wholesale prices rose 1.3% in a single month, the fastest pace since March 2022, and bond investors responded by buying more bonds.

The RIP: Producer prices rose 1.3% in September and 6.3% year over year against roughly 5.5% expected. The 10-year Treasury yield fell 13 basis points to 5.06% anyway, October hike odds dropped back to about 29% from above 50%, and $TLT gained 1.4%.

Retail sales added to the puzzle, up 0.8% against 0.3% expected, with gasoline doing most of the work. Nothing in the morning's data argued for cheaper borrowing. The two-year Treasury yield, the one that tracks expected Fed policy, still fell to about 4.75% after spiking to 4.95% on Wednesday's CPI. 🔥

Investor's Business Daily put the reason in its headline: yields dove for the wrong reason, as neocloud bonds blew up. Money was leaving AI credit and hiding in government debt. Bond buyers were not celebrating cooler inflation. They were running from CoreWeave's 15% yields. 🛡️

31.6K WATCHERS · BEARISH · NORMAL ACTIVITY

Dell sank after Barclays downgraded the stock, warning that higher memory prices, rather than an enterprise AI spending surge, were doing more of the work behind hardware revenue growth.

69.3K WATCHERS · BEARISH · NORMAL ACTIVITY

Rocket Lab fell after pushing Neutron’s first launch into 2027, delaying the larger rocket expected to carry 13,000 kilograms and unlock a much bigger launch market.

12.8K WATCHERS · BEARISH · NORMAL ACTIVITY

Intuit jumped after agreeing to acquire Sequence, adding AI-powered billing, collections, and revenue-management tools to QuickBooks and its enterprise suite; financial terms were not disclosed.

Bearish 🐻 | Bullish 🐮 | It’s Complicated 😵‍💫

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Macro: Import prices (8:30 AM ET), State Unemployment Insurance Weekly Claims Report (9:00 AM ET), Business Leaders Survey (9:00 AM ET), Monthly Treasury Statement (9:00 AM ET), Treasury International Capital: Continuous Securities Long Term (CSLT) (9:00 AM ET), +3 more. 📊
Pre-Market Earnings: $RF Regions Financial Corp., $TFC Truist Financial Corporation, $TRV Travelers Companies Inc.. ☀️
After-Market Earnings: $HIFS Hingham Institution For Savings, $BANF Bancfirst Corp., $ATLO Ames National Corp.. 🌙

P.S. You can listen to all of these earnings calls on Stocktwits.

Want to see some change? Respond to this email and reach me, Kevin Travers, with feedback. Follow me on Stocktwits. Send me charts and ideas! Refer a friend for this quarter’s edition of The RIP Forecast 😎

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