Rate Drop Helps Fuel Bounces… And Apple And Meta’s AI Partnership 10/15/26

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Melissa Lee (0:58)

Live from the Nasdaq Market site in the heart of New York City's Times Square, this is Fast Money. Here's what's on tap tonight. A massive reversal. Core week starting the day at new 52 week lows, but ending the session well in the green. What drove the comeback and what impact could it have on the broader markets? And Meta bringing news to Max, what the partnership between two longtime tech rivals means for the AI trade and how to play the stocks right now. Plus Walmart gets a big bullish call on Wall Street. Eli Lilly heads toward new highs. And why is a gold miner getting investment interest from big tech companies? The tie up talks between literal picks and shovels and the mega cap names. I'm Melissa Lee, coming to you live from Studio V at the NASDAQ. On the death tonight, Tim Seymour, Karen Feinerman, Guy Adami and our guest trader for the night, Savita Subramanian, Head of US Equity and Quant Strategy at B of A Securities. Welcome Savita.

Savita Subramanian (1:44)

Great to be here.

Melissa Lee (1:46)

We start off with today's sigh of relief as safe haven assets catch a bid. Treasury yields across the curve moving lower. The 10-year now roughly 30 basis points below the 24-year highs it hit just a week ago. That move helping the housing trade get off the mat, all 43 stocks in the ITB home construction ETF ending in positive territory. Builders like Lennar, DR Horton plus Home Improvement Stocks, Home Depot and Lowe's all in rally mode. And speaking of retailers, the broader consumer space also jumping. Big moves in stocks like Best Buy, Hilton, DoorDash and Starbucks. Even long-lagging Nike getting off the mat seeing its best day since February. And take a look at one of yesterday's hardest hit tech stocks. After a 15 percent drop yesterday, CoreWeave fell another 10 percent early in the session, but staged a massive reversal. NVIDIA CEO Jensen Huang throwing his support behind the company, saying he is optimistic about its direction and that its cost of capital is actually decreasing. CoreWeave closing the day 6 percent higher. So is this all a short-term breather or is the sign the rally is going to get back on track? Karen, what do you make of this all?

Karen Feinerman (2:47)

Well, the NVIDIA thing I thought was really interesting. I mean, that was trading down a lot. It closed down, I think down still. But you want that from Jensen Huang if you can get it, right? And the cost of capital decreasing every day and that the business is improving every day. I think he also said, which is pretty much counter to the yikes from Elon Musk yesterday. And I think that once you get into this sort of, okay, now we're in a vicious cycle of selling, but oh, there's a bottom maybe, there's some good news and then you start to see things trade better and then the stock starts to approach flat. And then you can think, all right, it's going to go through flat. So I think at the moment, the core weave situation is calmed down at the moment.

Melissa Lee (3:30)

Which is good for the rest of the tech trade?

Karen Feinerman (3:32)

I think it is, although it's a, they have a sort of unique issues because of their business model being very different than NVIDIA, let's say, and the balance sheet being obviously very different than NVIDIA, but I think it is an important one. It's certainly at the center of the build, so it's important.

Melissa Lee (3:47)

Yeah. What is the opposite, welcome back, Guy, by the way.

Guy Adami (3:50)

Thank you.

Melissa Lee (3:50)

Of outside reversal?

Guy Adami (3:53)

What is the opposite of an outside reversal?

Melissa Lee (3:55)

Well, I mean, is it the same term that you use on the bottom? And then it finishes well off the high.