Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
Australia’s Economic Growth Slows in Q3 Despite Strong Investment Activity 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
Dollar Holds Steady as Markets Shift Focus to 2026 Rate Cut Expectations 
IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook 
Asian Currencies Steady as Markets Await Fed Rate Decision; Indian Rupee Hits New Record Low 
Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
Asian Markets Stabilize as Wall Street Rebounds and Rate Concerns Ease 
The S&P 500 and Nasdaq closed at record highs on Monday as enthusiasm for artificial intelligence (AI) stocks offset concerns over the ongoing U.S. government shutdown. The rally was led by chipmakers after AMD announced a major deal with OpenAI to supply AI chips, a move projected to generate tens of billions in annual revenue and potentially grant OpenAI up to a 10% stake in AMD. Shares of AMD soared 23.7%, lifting the broader Philadelphia Semiconductor Index by 2.9%.
Market optimism persisted despite the shutdown entering its sixth day, delaying key economic data releases. Investors instead turned to secondary indicators such as consumer credit and mortgage demand to gauge the economy’s health. According to Robert Pavlik, senior portfolio manager at Dakota Wealth, “The market remains captivated by the AI trend, particularly in technology and consumer discretionary sectors.” He cautioned, however, that “waves don’t go on forever; it’s hard to know when this one will crest.”
Federal Reserve officials maintained a cautious tone on rate cuts, even as markets priced in a 94.6% probability of a 25 basis point reduction at the October meeting. The Dow Jones Industrial Average slipped 0.14% to 46,694.97, while the S&P 500 gained 0.36% to 6,740.28, and the Nasdaq climbed 0.71% to 22,941.67. Consumer discretionary stocks led S&P gains, while real estate lagged.
Corporate movers added to market excitement. Tesla jumped 5.5% after teasing an upcoming event on X, while Comerica surged 13.7% after being acquired by Fifth Third in an $10.9 billion all-stock deal. In contrast, Starbucks fell 5% following a price target cut, and Verizon dropped 5.1% after naming former PayPal CEO Dan Schulman as its new leader. Bitcoin also broke the $125,000 mark, boosting crypto-linked firms like Coinbase and Riot Platforms.
With earnings season approaching, analysts expect S&P 500 companies to post 8.8% year-on-year profit growth for Q3, further fueling optimism across Wall Street.
