Reaction to PPI Data, TeraWulf CEO Interview, Global Energy Markets 10/15/26

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Brian Sullivan (1:05)

Big tech in focus as the market tries to hold up. Welcome to Power Lunch, everybody. I am Brian alongside Kelly Evans. Trouble in tech land, the big semiconductor index now down for eight straight days. That's its longest sell-off in a decade. The Korean market having its worst run in nearly 20 years. Many of the AI darlings, they've been getting dumped by investors and the CEO of one of them, TeraWulf, is here on set with what investors are getting wrong.

Kelly Evans (1:32)

US crude oil prices are higher as investors assess potential supply disruptions after those attacks on ships in the Strait of Hormuz. Energy expert Bob McNally will help us navigate that. Consumer stocks are among today's stronger performers. What's behind the rally and what it says about shoppers and the broader economy? The former CEO of Walmart US, Bill Simon, is here. But let's start with the AI trade, a stunning reversal for CoreWeave. The stock is now green after falling 10 percent earlier today. The corporate bond yields still higher as concerns mount over how much debt it has to fund its AI buildout. The chip and memory stocks broadly are also still under pressure. Seagate, Western Digital, they're trading off along with SK Hynix and Intel, but gains outside of tech or even in areas like software are helping to lift the broader market. So is this just a blip or is it a red flag for the whole, I mean the whole rally really? Let's ask Steve Sosnick, he's the Chief Strategist at Interactive Brokers, and for the technical take, Mark Newton is here as well. He is Fundstrat's Global Head of Technical Strategy.

All right, who wants to jump in? Let's talk technicals, Mark, first with you. Okay, because the price action has been kind of crazy, and so divine that a little bit for us. What's going on?

Mark Newton (2:41)

Look, I think it's fair to say the cross-asset volatility has really started to pick up in the last month. We saw equated S&P down about 6 percent at a time when S&P literally just hit new all-time highs 7 trading days ago. So a lot of this has already been happening while tech was rallying during September. That since has reversed. Tech has pulled back very sharply in this last week. Arguably, we really have not seen that much damage in technology compared to the move that it had back in September.

This whole year has been marked by rotation. We saw initially an energy rallying almost 40 percent. That spread to technology. Now it's spreading to healthcare, which just hit new all-time highs. Investors need to be prepared for these shifts in sectors.

Arguably, you need to be diversified. But right now, in my opinion, it's right to buy the dip in technology.

Brian Sullivan (3:30)

Steve, coming into a week ago, about 40 percent of the S&P 500 was in a technical bear market, but nobody cared because those were the companies that are not running the show.

The problem now and what worries me a little bit, why I tweeted out last night, the market feels a little bit fragile, is that the companies that are being sold the last couple of days are the ones that are running the show. They are AI, AI-related and semiconductors. They're holding up right now. How important is this time, these next few days for the market?

Steve Sosnick (4:02)

Well, I don't disagree with you, Brian. I think the problem here is, it's not a problem. It's worked really well, but we are all heavily invested in AI, whether we want to be or not. If you're putting, if you're taking your 401k and a certain amount of it goes into an S&P 500 index fund, you're 45 percent invested or more in technology, whether you like it or not.