Markets in 5Tuesday, October 20
Chip rebound lifts Nasdaq as yields climb
Tech led a Monday rebound from last week's AI-related rout, Treasury yields rose, and Asian shares fell overnight as AI credit concerns stayed in focus.
Stocks
Nasdaq rises 1.11% as chipmakers end eight-day slide
The Nasdaq Composite closed Monday at 26,430.89, up 1.11%, while the S&P 500 gained 0.41% to 7,690.73. The Dow slipped 0.07% to 51,966.03 and the Russell 2000 added 0.25% to 2,728.30. Chipmakers led, with the Philadelphia Semiconductor Index up 1.61% to snap an eight-session losing streak, its longest since 2008. Breadth was weak underneath, with NYSE decliners outnumbering advancers 1,761 to 945, and the equal-weight S&P 500 ETF fell 0.32%.
Rates
Ten-year Treasury yield climbs to 5.15%
The 10-year Treasury yield closed Monday at 5.15%, up 6 basis points from 5.09% on the prior trading day, according to official Treasury par yield data. The 2-year yield rose to 4.77% from 4.74%, and the 30-year to 5.48% from 5.43%. The 2s10s spread stood at 38 basis points, and a year earlier the 10-year was 4.02%.
The Fed
Fed enters blackout ahead of October 27-28 meeting
Chair Kevin Warsh's October 16 remarks in Bangkok were the last from any Fed official before the blackout, which runs through the October 27-28 meeting. He declined to offer clues on whether a rate hike would come this month. CME FedWatch pricing showed a 72.3% chance that rates stay unchanged at that meeting, while most traders expected a 25 basis point hike in December.
Global
Asian shares slide and European futures fall on French unrest
The MSCI Asia ex-Japan index fell 1.14% overnight, Japan's Nikkei 225 dropped 0.98% and South Korea's KOSPI tumbled 3.92%, with chipmakers leading Korea's losses. Euro Stoxx 50 futures fell 0.71%, DAX futures 0.40% and FTSE futures 0.44%. French authorities imposed curfews in parts of Paris, Lille and Nice after a weekend of riots and looting tied to nationwide anti-government protests.
Commodities
Oil rises overnight with Brent at $109.64
US crude rose 0.18% to $103.85 a barrel and Brent to $109.64 in overnight trade. Crude had settled lower Monday after Trump waived some newly imposed Russia sanctions, while Middle East supply risks kept prices supported. WTI futures rose more than 2% overnight on reports of recent Houthi attacks on Saudi Arabian infrastructure targets.