Public Markets 8-Hour Briefing
×Market Indices
S&P 500 is undergoing its quarterly rebalance with Vertiv Holdings Co., Lumentum Holdings Inc., Coherent Corp. and Echo Star Corp. joining the index. The Dow industrials fell 3% this week as markets reacted to a combination of disappointing economic data and geopolitical concerns. Wall Street witnessed its worst week since April as concerns mounted about the sustainability of the labor market.
Oil & Energy Markets
Oil prices are facing upward pressure as the conflict with Iran continues, with traders warning that $100 per barrel oil is imminent if the war persists. The Trump administration announced a $20 billion reinsurance program aimed at reviving shipping in the Strait of Hormuz, where traffic has nearly stopped. Energy Secretary Wright called to reopen a shuttered nuclear plant north of New York City to meet surging demand.
Fed Policy & Bonds
Fed's Hammack emphasized there are two-sided risks to interest rates, while suggesting rates should stay on hold for quite some time. US bonds saw their worst week since April as inflation concerns grew amid rising oil prices. Bond traders are piling into inflation hedges as the Middle East war sparks energy price surges, pushing some valuations to nearly one-year highs.
Tech & AI Sector
AI guidelines are being drafted by US officials with strict new requirements for civilian government contracts. Oracle and OpenAI have scrapped their deal to expand a flagship Texas data center, with Meta in talks to take up the additional computing capacity. Cerebras Systems has tapped Morgan Stanley to lead its initial public offering as the AI chipmaker attempts a return to public markets.
Corporate Developments
Novo Nordisk plans to sell its weight-loss drugs on Hims & Hers Health Inc.'s platform, ending a highly public feud between the two companies. Kennedy-Wilson Inc. bondholders are organizing to push back on a tender offer, with a majority planning to skip the company's debt exchange offer. Millennium Management hired four stock pickers from rival Citadel as the multistrategy hedge funds battle over talent.