The latest US inflation data has once again issued a warning to the market.

Inflation, war, and rate hikes have all failed to stop U.S. stocks from hitting new highs, and the upside for the S&P 500 has yet to truly unfold.

Amid panic selling that wiped out a trillion dollars from tech stocks in a single week, Jensen Huang pushed back against the pessimistic assumption that "AI compute depends entirely on two labs." He pointed out that one-third of Nvidia's compute is used for traditional computing unrelated to large models, another third flows to the open-source enterprise ecosystem, and frontier model labs account for only 30%.

High interest rates are continuing to weigh on consumption and investment, while the AI boom, compounded by high leverage and circular investment, is seen as the most vulnerable potential fracture point under a high-rate environment.

In the third quarter of 2026, the company's net sales reached €11.662 billion, a year-over-year increase of approximately 55%, landing at the high end of its previous guidance range of €11 billion to €12 billion; net profit reached €4.960 billion, up approximately 133% year-over-year; basic earnings per share stood at €12.95, significantly beating market expectations of approximately €10.7.

Inflation resurges, leaving the Fed caught between a rock and a hard place, while Trump's campaign prospects falter.

The AI gamble hits a "money crunch" moment: CoreWeave bond yields surge past 15%, cloud giants may issue over $400 billion in debt next year, competing for funds with nearly $2 trillion in US Treasury deficits. Goldman Sachs warns that runaway financing costs could delay AI infrastructure, with semiconductor orders facing a gap risk in 2027.

TSMC will release its 2026 third-quarter earnings on October 15, with revenue hitting a record high and exceeding the upper end of its guidance. The market is closely watching AI chip demand, 2nm process capacity ramp-up, gross margin stability, as well as fourth-quarter outlook and capital expenditure trends, to assess TSMC's future growth potential and profitability prospects.

The market's focus has shifted from the inflation data itself to its implications for the Fed's policy path and asset pricing.

Connecting traditional finance and digital assets through strict governance, advanced technology, and a compliant framework.

Last week, major U.S. stock indices strengthened overall, but chip stocks pulled back, with the market keeping a close eye on the AI supply chain's ability to deliver on earnings. This week (October 12–16), U.S. CPI, PPI, and retail sales data will be released in succession. Combined with earnings from JPMorgan, Goldman Sachs, ASML, and TSMC, these could further shape the market's assessment of inflation, interest rates, and the profit outlook for tech stocks. TSMC's September revenue grew 54.6% year-over-year, and whether AI demand can continue to translate into earnings growth will become a key focus for the market.

Nvidia is reportedly in talks to further invest in or acquire Reflection AI, extending its footprint from computing power into the model ecosystem. Following the news, its pre-market shares rose slightly, though the market has yet to meaningfully reassess its valuation.

The third-quarter earnings of the six largest U.S. banks are about to be released in quick succession, with JPMorgan, Goldman Sachs, Citigroup, and Wells Fargo taking the stage first. The market expects bank profits to grow by as much as 20% year-over-year, but bank stocks have come under pressure recently. In a high interest rate environment, whether net interest income can offset rising funding costs and credit risk has become the focus of market attention.