U.S. Stock Market Developments

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S&P 500 futures fall 0.7%, Nasdaq 100 futures drop 1.6% as AI leaders call for slowdown over safety concerns

AI Developments

I=8 Anthropic CEO Dario Amodei asks AI companies to slow development of AI models due to safety concerns Amodei pointed out that the “toughest dilemma” about his proposal is what happens if China doesn’t do the same. Elon Musk and Sam Altman also signaled their support of Amodei’s proposal.

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S&P 500 and Nasdaq 100 futures are up 1.2% and 1.6% respectively after fed-rate hike selloff and boosted by a decline in oil prices

• Fed raised raised interest rates by 25 basis points and signalled one more hike this year.

• Brent futures fell 3.6% to around $102 per barrel as Saudi Arabia makes additional supply to Asian refiners through ship-to-ship transfers.

FED Monetary Policy

I=8 Fed raises interest rates by 25 basis points as was widely expected by the market and signals one more hike this year The Federal Open Market Committee (FOMC) voted 12-0 to increase its key interest rate by 25 basis points to a range of 3.75%-4.0%, as was widely expected by the market. The committee statement pointed out that while “inflation remains elevated”, “economic activity is expanding at a solid pace” and “unemployment rate has changed little”. Sixteen Fed officials now ex…

Oil and Gas

I=6 Brent futures fell 3.6% to around $102 per barrel as Saudi Arabia makes additional supply to Asian refiners through ship-to-ship transfers Crude loadings at the Yanbu Red Sea terminal were halted earlier this week, forcing Saudi Arabia to cancel some shipments to European customers. U.S. Energy Secretary Chris Wright described the outage of Saudi Arabia’s East-West pipeline as a “brief and temporary interruption” expected to last days rather than an extended period.

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S&P 500 and Nasdaq-100 futures rose 0.67% and 1.1% respectively, as oil prices and Treasury yields fall

• The U.S. crude prices fell 3% to $97.09 per barrel.
• The 10-year Treasury note yield lost more than 3 basis points to 4.957%, while yield on the 30-year Treasury bond to 5.294%.

Dow futures jump 400 points as oil and yields ease to start week: Live updates

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S&P 500 futures sheds 0.56% while Nasdaq-100 is down 1.13% as rising Treasury yields trigger sell-off

US Treasuries

I=6 10-year Treasury yield rises one basis point to 5.124%, after reaching a 19-year high on Wednesday Several factors boosted Treasury yields, including stronger-than-expected U.S. economic activity, hawkish comments from a Federal Reserve official and elevated oil prices. Fed Governor Michael Barr said Wednesday that further policy changes will likely be needed to bring inflation back to the Fed’s target. S&P Global data showed U.S. services PMI rose to 58.7 in September, its highest in nea…

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S&P 500 futures sheds 0.5% while Nasdaq-100 futures are down 1% after President Trump rejected Iran’s proposal for a ceasefire

Brent crude and West Texas Intermediate futures rose 1% to $105.86 and $93.20 per barrel, respectively.

Israel-Iran Conflict

I=7 President Trump rejects Iran’s proposal for a ceasefire, views renewed U.S. bombings after midterm elections as likely Iran offered to reopen the Strait of Hormuz and resume nuclear negotiations within seven days if the U.S. meets several conditions, including ending what Tehran describes as “acts of aggression.”

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Both S&P 500 and Nasdaq-100 futures jumped 0.4% as PCE data shows a drop in inflation

Personal Consumption Expenditure (PCE) Price Index

I=7 Fed’s favorite inflation gauge (core PCE) came in 0.2%, below 0.3% estimate PCE rose 0.3% in August, in line with estimates. On a yearly basis, PCE rose 3.4%, below 3.7% estimate. Core PCE rose 0.2% on the month and 3.0% y/y, both below 0.3% and 3.3% estimates. Both S&P 500 and Nasdaq-100 futures jumped 0.4% following the report. This post is being edited…

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S&P 500 and Nasdaq Composite shed 0.6% and 0.7%, respectively, as Treasury yields continue to rise

The 10-year Treasury note yield rose 8 basis points to trade at 5.356%, the highest level since April 2022.

The 30-year bond yield gained more than 8 basis points to 5.725%, the highest level since May 2002.

Dow falls 500 points as 10-year yield rises to highest level in 24 years:...

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S&P 500 falls 1.2%, Nasdaq Composite sheds 2.2%, Meta shares down 4% as AI selloff continues amid mounting debt concerns

Investors are concerned about the AI borrowings, resulting in significant selloff of AI-related stocks. Shares of CoreWeave led the route (down 10%) as yield on its 9.625% bond due in 2032 reaches 15%.

Nasdaq tumbles 2%, heads for worst week since June as investors rotate out of...

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S&P 500 futures slip 0.2%, while Nasdaq-100 futures decline 0.1% as concerns persist that the AI trade may be losing momentum

• Yesterday, S&P 500 fell 1.2% while Nasdaq Composite slid 2.6%.
• Nvidia CEO Jensen Huang said yesterday that he thought capital for the AI buildout was becoming constrained.

“There’s a scarcity of capital. The demand [for] the capital is much greater than the availability of the capital,” Huang said.

Stock futures remain under pressure amid AI trade worries, gain in oil above...