US markets hugged record highs with the S&P 500 and Nasdaq leading while the Dow lagged; volatility eased but safe havens surged as gold topped $4,000. Tech and AI names powered gains, Treasuries traded cautiously after Fed minutes signalled divided views, and the government shutdown added a persistent downside risk to travel and defense‑linked sectors.
A US-backed deal appears to have produced the first-phase agreement between Israel and Hamas to free hostages and pause fighting. The breakthrough shifts regional market risk and triggers cautious optimism among investors and diplomats.
4,000 — Gold hits $4,000 per ounce for the first time.
The US government shutdown is deepening, with funding votes failing and federal operations strained. Agencies are furloughing staff and businesses tied to government spending are reporting stress.
Federal Reserve minutes show officials split: many favor cuts but inflation worries persist. Markets are parsing nuanced signals about the timing and scale of future rate moves.
Costco sales surge as members keep spending
Costco notched an 8% year‑over‑year sales gain, extending its streak of monthly improvements and showing resilient consumer demand amid economic uncertainty.
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Safe-haven assets are surging as investors hedge against geopolitical and economic uncertainty. Gold hit new records while bitcoin and crypto flows reflect rising institutional demand.
HSBC moved to take full control of its Hong Kong arm, triggering market and regulatory scrutiny. Investors are weighing the cost of the buyout against Hong Kong’s commercial property woes.
Credit shock: First Brands creditors say up to $2.3bn vanished
Creditors allege billions have effectively disappeared amid the First Brands collapse, spotlighting counterparty risk and potential losses across banks and funds.
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Beijing expanded controls on rare earths and related technologies, tightening exports that are key to global chip and defense supply chains. The measures add pressure to manufacturers dependent on specialized inputs.
TSMC’s revenue surge underscores accelerating AI demand for advanced chips. Strong sales results lift sentiment across semiconductor supply chains and chipmaking equipment markets.
China expanded rare‑earth export controls restricting tech and processing know‑how; the EU unveiled new AI investment and competitiveness funding; the Pentagon tightened press rules affecting defence reporting.
SoftBank is doubling down on robotics as part of a broader AI and automation push. The ABB deal and market reaction underline investor appetite for physical-AI plays.
Global financial authorities are warning of froth in AI valuations as markets chase megadeals. Central banks and the IMF flagged risks that could prompt a sharp correction if confidence erodes.
“Markets are sitting on a powder keg — a sharp correction is more plausible than many realise.”
— Jamie Dimon, CEO, JPMorgan Chase
US regulators approved key Nvidia chip exports, a step that supports global AI deployments and commercial partnerships. Chipmakers’ stocks are reacting to both policy shifts and new partnerships.
A customer-service vendor breach exposed ID photos for tens of thousands of users, raising data-protection concerns for messaging platforms. The incident spotlights third-party risk for online services.
Satellite and launch firms are capitalizing on growing commercial and telecom demand. Deals with carriers and multi-launch contracts are reshaping competition with SpaceX in the satellite market.
The White House is evaluating ways to keep troops paid and reallocate funds if the shutdown persists. Congressional leaders are clashing over whether to reconvene to pass targeted measures.
Airport operations are under increasing strain as air traffic controllers and FAA staff face furloughs. Delays are spreading across major hubs, pressuring carriers and travel-dependent sectors.
Germany convened its auto summit as carmakers face job cuts and weak demand, pressing Berlin for support. The government’s move highlights the strain across Europe’s auto supply chain.
European exchanges and market groups are under scrutiny after recent outages. Industry bodies are urging stronger outage protocols to prevent trading disruptions and investor harm.
Top bankers warn markets are stretched and at risk of a sharp correction if sentiment reverses. JPMorgan’s chief flagged elevated downside risks while investors watch tech and AI exposures.
Markets rallied on hopes for Middle East peace and an AI-led tech pickup, while futures pointed to modest gains. Investors remain wary of shutdown fallout and central bank guidance as catalysts.