On October 16, the S&P 500 index closed nearly flat on Friday. Despite ongoing concerns about the longevity of the artificial intelligence (AI) investment surge, the possibility that the Federal Reserve might hold interest rates steady this month boosted investor sentiment. However, the Nasdaq 100 index dipped by 1%, as cloud computing service provider CoreWeave saw a sharp drop in its stock price, heightening worries about the AI industry ecosystem and weighing on tech sector performance. Andrew Tyler, Head of Global Market Intelligence at JPMorgan, noted that Federal Reserve Chair Warsh’s remarks at the IMF reinforced market expectations for unchanged rates in October, with investors now eyeing opportunities to buy on dips. The sustainability of the AI boom has become a growing concern, contributing to increased volatility in related stocks. Meanwhile, global bond yields are hovering near 20-year highs, driving up borrowing costs and casting doubt on the durability of AI-related spending. Tech firms, whose valuations are often tied to anticipated future earnings, are particularly vulnerable to rising interest rates.