Market & Economy

Market Wrap & Treasury Rally: U.S. stocks rebounded as a recovery in Treasuries pulled 10-year yields back from 2002 highs, easing rate fears. Energy cost concerns and geopolitical risks remain, with oil advancing.

Federal Reserve Remarks:

Lisa Cook: Highlighted AI as a primary risk for 2027, noting that data center buildouts and hardware demand are actively driving sector-specific inflation. She noted AI could cause a major reorganization of work and that policy responses to supply shocks may need to be sector-dependent.
John Williams & Michelle Bowman: Stated that AI is altering supply in unpredictable ways, but both saw no immediate urgency or need for further interest rate hikes this year.
Philip Jefferson: Echoed that policymakers need more time to assess whether additional rate increases are necessary.

Total money market fund assets dropped $45.45 billion to $7.89 trillion for the week ending September 30.

- Nike ($NKE) Q1 Earnings:

- EPS: $0.48 (vs. $0.44 est., $0.49 y/y)

- Revenue: $11.21B (vs. $11.33B est.)

- Gross Margin: 42.8% (vs. 42.2% y/y)

- Guidance: Expects FY27 revenue to decline high-single digits with adjusted EPS between $1.15 and $1.35.

SpaceX / Elon Musk ($NVDA,$SPCX): Musk expressed cautious optimism about running the SpaceX version of the VR72 at close to 250 kW average power (~10% higher peak power).
SEC Crypto Regulation: The SEC proposed updated rules regarding investment advisor custody of digital/crypto assets.

Middle East Escalation: UKMTO reported a tanker struck by a projectile in the Strait of Hormuz, causing a fire. President Trump indicated Iran will be addressed "one way or the other" and hinted at requesting European diesel reserves to relieve fuel pressure.
Trade Policy (USTR Greer): The U.S. remains in discussions with Canada and European partners over trade and fuel reserves, though no set timeline or draft agreements exist yet for U.S.-China tariff reductions.

Bank of Canada: Senior Deputy Governor Rogers noted that a accumulation of regulations is holding back Canadian economic growth and urged streamlining.