Closing Bell Overtime: 10/15/26

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Melissa Lee (1:00)

The bells ringing in to the trading day at the NYSC, the headstrong project ringing the bell. And at the NASAC, the Go Well Technology doing the honors. Welcome to Closing Bell Overtime. We're live from Studio B at the NASAC market site. I'm Melissa Lee along with Mike Santoli. Stocks well off their lows of the session. The out closing higher by a full percentage point, 556 points there. The NASAC composites sneaking into the green late in the session, S&P 500 also.

They snapped a three day losing streak there.

Michael Santoli (1:26)

CoreWeave kicking off the tech selling yesterday with concerns about its debt at the low of the day. The stock was below $60 a share. You see a big comeback there above $69.

It was down there for the first time since May of 2025 before the rebound. Also a dramatic day for bond yields, closing sharply lower despite this morning's hotter than expected PPI report. The quest for safety amid the tech sell-off seeming to outweigh inflation concerns in the near term.

Melissa Lee (1:50)

We also saw the safety trade in the stock market. Nearly every stock in the consumer staples sector closing higher. Walmart getting upgraded. Kimberly Clark reporting preliminary results. And health care, what a standout. Continues to be the best sector recently of 6% in a week, once again led by Eli Lilly. Let's get the first take on the close now. And the dramatic decline in bond yields, we went down to as low as 5.04% at one point in this session. That really seemed to alleviate the pressure across multiple sectors, including technology.

Michael Santoli (2:19)

It did. It definitely released higher a lot of the hard hit consumer parts of the market, the leverage parts, housing, homebuilders, things like that. Beyond that, you had really, I think, selling panic conditions in semis that were isolated around midday. Basically, people said, look, even if this isn't the bottom, it's a bottom, and they managed to rally. So I do think you still can see this clear quality bias in all of this, with the blue chips, self-financing type businesses way outperforming. It was Lilly and Visa and all that at the top of the index. Quality ETF week to date, up 2 percent, momentum ETF week to date, down 5 percent. So now the question is, is that, did that kind of do the job of trying to discount some of the risks in credit markets and the rest of it? I also don't know if you want to see bond yields on the Treasury market swinging this wildly day to day. I mean, it is a little bit unnerving.

It's volatile, but obviously, at least for now, going in the correct direction to relieve some of the pressure.

Melissa Lee (3:14)

I don't know if anything is really resolved, excuse me, around the NeoCloud issue in terms of borrowing costs at all. I mean, the 5-plus percent on the 10-year Treasury yield, costs are still elevated and the bonds are not really trading that much better in light of the increase in the stock price that we've seen in today's session. I mean, CoreWeave stock, 21% short interest, and we also had some favorable comments from Jensen Huang, who of course is talking his book with NVIDIA having a 10% stake, but saying, you know, CoreWeave, their borrowing costs are actually lower today. They're getting lower every day. And so you had him out defending that stock. That's certainly added to the sort of positive swing higher.

Michael Santoli (3:50)

I don't think there's anything like an all clear for those questions. I do think though it's worth a reminder that we've been in this process of questioning the assumptions underlying the AI hardware build out for four months. Semiconductors peaked in June. All of the NeoCloud stuff peaked around that period of time. Storage, AI industrials, all of it has been months in the making where you're kind of 20, 30% off the highs. It doesn't mean it's over, but it does mean it's not the beginning of things. It did remind me of yesterday's action with that Gartner report saying most of these NeoClouds are not going to survive independently.