Market close on October 8: All three major indexes fell, with the 10-year Treasury yield hitting a 20-year high, as bank and technology stocks came under pressure. Top 20 U.S. stocks by trading volume on October 8: Micron Technology Inc (NASDAQ: MU) rose more than 4%, while SanDisk Corp (NASDAQ: SNDK) gained about 2%, as memory chip stocks rebounded following a sharp selloff in the previous session. Popular Chinese concept stocks on October 8 closed mixed, with Taiwan Semiconductor Manufacturing Co Ltd (NYSE: TSM) and Alibaba Group Holding Ltd (NYSE: BABA) each falling more than 2%, while WeBull Financial LLC dropped nearly 20%. Commodities overview: Oil prices declined, copper edged higher as a strike at a Chilean copper mine intensified supply concerns, and gold prices fell.
Eurozone stocks hit a four-month low, with French fiscal concerns weighing on bank shares. Macro news: The United States plans to impose high fees on international students staying to work in the country. Trump will award Musk a science achievement prize on Thursday. Trump said he hopes Russia has brought a suspected plague case under control. The U.S. military stated that Iran's claim of having "complete control" over the Strait of Hormuz is inaccurate. The U.S. Dragon spacecraft carrying four astronauts undocked from the space station and began its return to Earth. Fed minutes disclosed that the joint intervention in July to support the yen was a Treasury Department action and did not use central bank funds. Fed minutes showed unanimous support for the September rate hike, with most participants leaning toward one more increase within the year. Rubio: In the Iran standoff, Tehran missed "multiple" opportunities to reach a nuclear agreement. Yemen's Houthi armed group said Saudi Arabia launched 156 attacks in 24 hours. The World Health Organization urged Russia to disclose more information, saying the risk of the suspected plague case remains difficult to determine. The French Finance Ministry said its bond issuance strategy remains unchanged. Russia responded to France's missile test, saying Europe is fixated on militarization. A senior Iranian official said Iran will never give up its right to uranium enrichment. Multiple EU countries prefer to cap the size of the G7 emergency release of diesel and crude oil within the March commitment. The Pakistani military has already carried out multi-domain defense cooperation in Saudi Arabia. India's central bank raised rates for the first time in more than three years. The number of constituents in Japan's TOPIX index will be significantly reduced.
Corporate news: SK Hynix Inc (KRX: 000660) flash memory business Solidigm is said to have selected banks for a U.S. IPO next year. A report said Broadcom Inc (NASDAQ: AVGO) plans to finance more than $50 billion for OpenAI's custom chip project. Anthropic PBC launched Claude Haiku 5.5. Microsoft Corp (NASDAQ: MSFT) said its new flagship laptop uses Nvidia chips and outperforms Apple's MacBook in some AI tasks. Apollo Global Management Inc (NYSE: APO) is in talks with several banks to finance SpaceX's $40 billion purchase of Nvidia GPUs. Mercedes-Benz Group AG (XETRA: MBG) reported an 8% decline in third-quarter car sales. Disney+ will stream the upcoming Super Bowl live.
Commentary: Billionaire Novogratz believes AI is in the biggest bubble of his lifetime, but it is not yet time to exit. U.S. bond market: Treasuries closed mixed, with a strong 10-year note auction easing the decline in long-dated bonds. U.S. consumer credit growth came in below expectations, dragged down by a decline in revolving credit. Treasury yields are beginning to attract investors, with the bid-to-cover ratio for the 10-year note hitting a ten-year high. Bank of America's Cabana believes the Fed faces a dilemma: either raise rates or let Treasury yields surge. Wall Street is trying to see through the Treasury market fog, with Goldman Sachs, Barclays and others clearly divided. Review of European bond turmoil: the plunge in French bonds triggered a chain reaction, and potential selling pressure from overseas investors is drawing attention. Morgan Stanley recommends shorting EUR/CHF due to rising euro risks. A Fed survey showed one-year inflation expectations rose to the highest since May 2023, intensifying inflation concerns.
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