Tech rebounds as Nasdaq climbs 1.11% but Big Tech's default-insurance cost hits a record

Amazon's 5% jump and a memory-chip bounce lift the S&P 500 to 7,708, yet the 10-year Treasury yield rises to 5.14% and a Goldman basket tracking cloud-giant credit risk reaches an all-time high of 178.6.

Deepakshi

Kristal Research & Marketing team

20 Oct

Key takeaways — AI summary

US tech staged a narrow rally on Monday: the Nasdaq Composite rose 1.11% to 26,430.89 and the S&P 500 gained 0.63% to 7,708, though about 70% of index members fell and the equal-weight S&P slipped 0.2%.
A handful of giants did the lifting — Amazon jumped 5% after a Morgan Stanley Top Pick call, Western Digital rose 6.1% and SanDisk 5.5% as chip stocks snapped their longest losing streak since 2008, per Goldman Sachs traders.
Credit stayed nervous: a Goldman basket of credit default swaps on 30 hyperscalers hit a record 178.6, CoreWeave's unsecured bonds yield about 13.5%–15%, and the 10-year Treasury yield rose 0.06 points to 5.14% with the 30-year at 5.48%.
Asia did not follow — by Tuesday morning South Korea's KOSPI was down over 3%, SK Hynix and Samsung led losses, Japan's Nikkei fell 1.28% and SoftBank slid 6.3%.
Oil swung on Gulf tensions: Iran asserted claims over the Strait of Hormuz and Houthis claimed six attacks on Saudi Arabia, while Trump signed an order easing Russian energy sanctions; Brent eased 0.3% to $109.55, US crude rose 0.5% to $98.54 and gold held near $4,142.

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