US Stocks Close: Nasdaq Rises Over 1%, Philadelphia Semiconductor Index Gains Over 3%; Chip Stocks Extend Rally, CoreWeave Gains Nearly 8%

TradingKey - On Tuesday, October 27 ET, U.S. stocks moved higher, led by gains in the Nasdaq as chip stocks extended their rally. As oil prices fell, investors continued to evaluate a flurry of corporate earnings reports and focused on the Federal Reserve's rate-setting meeting.

At the close, the Dow Jones Industrial Average rose 0.03% to 52,377.57; the Nasdaq Composite Index gained 1.18% to 26,477.81; and the S&P 500 Index advanced 0.60% to 7,722.60.

Tech Stock Performance

CoreWeave (CRWV) rose 7.94% to $59.57.

Chase Lochmiller, CEO of U.S. AI data center developer Crusoe, said at an investment conference in Dallas that the market's recent sell-off of "neocloud" companies was an overreaction. Lochmiller said: "I do firmly believe that a lot of the anxiety right now is overblown and that (the market) has somewhat overreacted." He specifically mentioned competitor CoreWeave: "As far as I understand, CoreWeave has struck some very good deals, and they are currently in a pretty good position."

The performance of major tech stocks today is shown in the chart below:

The Philadelphia Semiconductor Index rose 3.6% to 11,482.51 points, with all 30 constituents gaining.

Company News

Oracle Expands Nvidia AI Chip Partnership and Introduces Compute Solutions Including Google TPUs

Oracle announced an expansion of its cloud AI chip partnership with Nvidia, planning to scale up its deployment of AI servers powered by next-generation Vera Rubin chips to multi-gigawatt levels. Meanwhile, the company will introduce Google TPUs, as well as AI inference chips from SambaNova and Cerebras, to diversify compute options for customers. Oracle stated that different AI workloads have varying requirements for performance, throughput, and cost, and a diversified chip supply helps customers choose the right infrastructure. The company also plans to use its proprietary Acceleron networking chips in select Nvidia servers, replacing some Nvidia networking products. Oracle has not disclosed financing arrangements for this chip procurement. The company said last month that customers are increasingly bearing chip procurement costs, while maintaining its capital expenditure target of approximately $90 billion to $95 billion for fiscal year 2027.

Meta Upsizes Common Stock Offering to $25 Billion with Demand Reaching Roughly 5x Issue Size

According to people familiar with the matter, Meta's upsized $25 billion common stock offering attracted demand roughly five times the issue size, priced at $625 per share, representing a 2.7% discount to last Friday's closing price prior to the offering announcement. More than half of the shares were allocated to long-term investors and existing shareholders, with the top 15 investors by order size receiving about 70% of the total allocation. The offering is part of Meta's capital-raising plan for AI expenditures. Together with a $12.5 billion mandatory convertible preferred stock offering and an anticipated at-the-market equity offering program, the company plans to raise approximately $98 billion. If fully completed, it will rank among the largest equity financing programs in history.

Google Unveils Genie 4 World Model, Supporting Two-Minute Simulations and Synchronized Audio-Video Generation

Google on Tuesday unveiled its next-generation world model, Genie 4, extending the maximum simulation duration to two minutes and offering synchronized audio-video generation for the first time. Users can alter virtual environments, adjust camera angles, and add characters in real time using natural language. Google stated that Genie 4 can construct explorable and interactive virtual environments based on text prompts, and the company is exploring its applications in game design, film and television production, education, and robotics training. Currently available as a research preview to a select group of testers, the model will be rolled out to Google AI Ultra subscribers in the coming weeks and gradually granted access to select developers.

Industry & Macro News

JPMorgan Asset Management's Michele: U.S. Bond Market Total Returns Expected to Reach 7% to 8% Over the Coming Year

Bob Michele, Chief Investment Officer and Global Head of Fixed Income at JPMorgan Asset Management, said Tuesday that the U.S. bond market is expected to deliver total returns of 7% to 8% over the next 12 months. He believes current higher yields provide coupon income, while potential bond price gains could further boost returns, with long-term U.S. Treasuries being the most attractive. U.S. Treasuries have strengthened so far this month as safe-haven demand was driven by earlier sell-offs in AI-related stocks, the political crisis in France, and Middle East tensions. The 10-year Treasury yield has fallen by over 30 basis points this month to around 4.99% on Tuesday, on track to end a seven-month streak of gains. On monetary policy, Michele expects the Federal Reserve will not raise rates this week, but may send a hawkish signal in December.

Senior Iranian Officials Discuss Management of Strait of Hormuz and Conditions for Ending War

Iran's Islamic Revolutionary Guard Corps (IRGC) reported that Rezaei, Secretary of Iran's Supreme National Security Council, met with Supreme Leader Mojtaba Khamenei to discuss topics such as safeguarding national and regional security through the management of the Strait of Hormuz and strengthening relations with neighboring countries on a lasting and mutually beneficial basis. Khamenei stated that the rights and interests of the Iranian people and the "Axis of Resistance" should be protected by fulfilling the relevant conditions proposed by Iranian officials, pushing to end the war and the situation of "neither war nor peace." Rezaei said that the Secretariat of the Supreme National Security Council is advancing strategic policies, including establishing a regional arrangement and order led by the region itself.