Wall Street opened strong on Monday, with the Nasdaq Composite climbing more than 1% to set a fresh record despite a sharp rise in long‑term Treasury yields, which reached levels not seen since 2002.
Analysts point to continued optimism around AI‑driven economic expansion as the primary catalyst for the tech rally, even as the ISM services index posted a slightly lower‑than‑expected headline, though its price‑input component hit a four‑year high.
Bond Market Turbulence
U.S. sovereign bond markets remain volatile, unable to find a clear direction. The 10‑year Treasury yield spiked, reflecting investor concerns about inflation pressures at the margins of the current growth cycle.
AI Cross‑Financing and Nvidia’s Valuation
Reports surfaced of a new AI cross‑financing arrangement between Broadcom and Anthropic, underscoring the sector’s rapid capital flow. Meanwhile, Nvidia’s share price edged closer to a staggering $6 trillion market capitalization.
European and Latin American Election Impacts
In Europe, French bond markets steadied as right‑wing presidential candidate Marine Le Pen presented a spending‑cut platform ahead of the upcoming election. The euro recovered from near 18‑month lows.
Spain prepares for a snap election on November 29, adding to market uncertainty. Across the Atlantic, Brazil’s markets rallied after the first round of its presidential race placed right‑wing candidate Flavio Bolsonaro in the runoff against incumbent Luiz Inácio Lula da Silva. Brazil’s Bovespa index jumped nearly 8%, its biggest daily gain since 2020, closing at a record high.
Oil Flow Data
Crude oil flows from Gulf producers, excluding Iran, rose to over 81% of pre‑war levels in September, driven by a rebound in Saudi exports despite ongoing attacks on the kingdom’s oil infrastructure. Iranian exports fell to zero following a U.S. blockade.
Upcoming Economic Data
Investors will watch for U.S. August trade balance figures, a three‑year Treasury auction, and remarks from Federal Reserve officials, including New York Fed President John Williams, later this week.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
