The market's changing face after the US CPI. The significance of the Nikkei 225 breaking through the 25-day moving average and the real demand for AI infrastructure to watch

I will report on the market conditions. Following yesterday's announcement of the US Consumer Price Index (CPI), the market has clearly shifted stages. The Nikkei 225 Stock Average has broken through the 25-day moving average from below, which had previously capped its upside during the correction phase, suggesting a return to a strong upward trend.

What is particularly noteworthy is the dynamic shift in momentum, where the market, which had been declining due to corrections until recently, is now buying into higher prices.

There is solid, real demand backing this rebound. In the US market, the fact that investment in AI infrastructure is not stopping was reaffirmed by Cisco Systems' strong earnings, which showed the strength of data center demand, and Riot Platforms' large-scale AI computing contract.

Nikkei 225 futures have been influenced by the US market, and this flow of overseas money is directly impacting the Japanese cash market as well. According to data released today, funds are flowing into companies with essential technologies for data center construction and operation, such as semiconductor manufacturing equipment, optical communications, electric wires, and power equipment. The attention on Furukawa Electric, against the backdrop of Cisco's strong earnings, can be said to be an inevitable move based on this supply chain logic.

From the perspective of work methodology, we are required to have an attitude of flexibly adjusting to the signals of market trend reversals rather than sticking to perfect plans. Just as the market, which had been reluctant to rise during the correction, suddenly went on the offensive with a bit of news, the agility to move to the next action the moment a change is sensed is the key to winning in the current investment environment.

Going forward, interest rate trends will be back in the spotlight depending on the results of the US Producer Price Index (PPI) to be announced tonight. While remaining vigilant against profit-taking at high price levels, it is reasonable for short-term traders to assume that as long as the long-term real demand theme of AI infrastructure remains unshaken, there will be buying interest from overseas money on dips.

Today's movement is not just a simple rebound. It can be said to be proof that market participants have regained confidence in the linkage between fundamentals and technological evolution. It is worth calmly utilizing this wave of reversal as a trigger for the next leap forward.

Disclaimer
This article is intended for informational purposes only and does not solicit the buying or selling of specific stocks. Please make final investment decisions based on your own responsibility and judgment.

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