Bonds Tighten the Screws, Equities Hold Their Ground
Markets opened weak on Thursday but briefly found relief after reports that U.S. and Iranian negotiators were exploring a phased path toward de‑escalation. The bounce didn’t last. By the close, stocks were essentially unchanged, unable to shake off the pressure coming from the bond market.
Index performance:
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Dow: –0.31%
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$S&P 500(.SPX)$ : –0.02%
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$NASDAQ(.IXIC)$ : +0.01%
The resilience is notable: despite the noise, all three benchmarks remain near record highs.
Yields Stay Elevated - And Equities Feel It
Treasury yields continued their march upward:
US3OY
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10‑year: highest level since 2007
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7‑year: highest since 2009
The drivers are stacking up-rising oil, expectations of more Fed tightening, and weak demand at recent auctions.
His view:
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Geopolitical relief, lower energy prices, calmer bond market
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Until then, upward pressure on yields likely persists
Sector Snapshot
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Hot Stock: $Everpure(P)$ +11.2%
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Biggest Loser: Gen Digital –12.1%
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Best Sector: Communication Services +1.9%
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Worst Sector: Utilities –1%
U.S.–China Talks: A Rare Moment of Calm
While U.S. diplomats negotiated with Iran in New York, Trump met with Xi Jinping in Washington. Both leaders struck a cooperative tone, emphasizing communication over confrontation.
Xi’s message: competition is fine, but it should be bounded, constructive, and non‑zero‑sum.
Expectations for the summit were low, but any sign of improved dialogue between the world’s two largest economies is a welcome signal for markets, especially with tariffs, AI safety, Taiwan, and the Iran conflict all on the agenda.
As always, political scenarios should be confirmed with trusted sources.
AI and Jobs: The Panic Doesn’t Match Reality
Fears about AI‑driven mass unemployment have been circulating for months, fueled by research predicting double‑digit job losses. But new reporting suggests the narrative is far more nuanced.
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Tech revolutions don’t happen in isolation, infrastructure, demographics, and adoption speed matter more than hype.
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Companies using AI heavily are not laying off more workers.
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AI is creating new roles, not eliminating entire professions.
On Deck Today
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Durable goods orders (August): expected –0.3% after July’s +1.1%
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A key read on manufacturing momentum and business investment
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This summary is for informational purposes only and does not constitute financial advice. Investors should conduct their own research before making investment decisions.
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