Markets & Economy

Fed Decision & Yield Surge: U.S. stocks fell as the 10-year Treasury yield surged to 5% (a multi-year high) ahead of Wednesday's Federal Reserve rate announcement. Expectations of a potential rate hike under Chair Kevin Warsh have intensified following recent hotter-than-expected core inflation data.
Treasury Auction & Buybacks: A weak $13 billion 20-year Treasury auction weighed on longer-dated bonds. Meanwhile, the U.S. Treasury accepted $500 million in long-dated debt buybacks out of $2.088 billion offered.
Energy Rally: Crude oil prices jumped significantly, with Brent crude settling near $109/bbl (+2.9%) and WTI crude topping $105/bbl (+4.38%). NYMEX Diesel reached record highs at $5.26 a gallon.

Politics & Policy

Crypto Legislation Blocked: The U.S. Senate voted 50–49 against advancing the Clarity Act, effectively halting the major crypto market structure bill and triggering a drop in Bitcoin.
Geopolitics & Defense: Vice President Vance noted commercial shipping encounters with Iran, stating expectations for the conflict to end after midterms. The Congressional Budget Office (CBO) reported the war in Iran has cost $38 billion over the first five months and revised near-term PCE inflation projections upward by 0.5 percentage points.

AI & Industry: Anthropic CEO Dario Amodei stated the world is currently using only 5% to 10% of existing AI potential. At a Salesforce event, NVIDIA CEO Jensen Huang argued that additional laws or regulations are unnecessary for AI safety.