📰 Morning Brief: Nasdaq Rises 1.11% to Lead Gains, WTI Back Above $103

Key Snapshot

· 📈 Nasdaq climbed 1.11% to 26430.89, outperforming peers. S&P 500 gained 0.41% to 7690.73 while Dow Jones edged down 0.07%.

· 🛢️ WTI crude rose 2.22% to $103.66 per barrel. The 10-year US Treasury yield advanced 4.2 bps to 5.14%.

I. Market Outlook

Core Events:

Nasdaq leads rally as tech sentiment rebounds. Nasdaq rose 1.11% to 26430.89, S&P 500 +0.41% at 7690.73 and Dow Jones dipped 0.07% to 51966.03. → Tech stocks found buying support after a stretch of losses, though Europe’s STOXX 600 fell 0.9% to 639.1.

US Treasury yields keep rising, crude stays elevated. 10-year US Treasury yield added 4.2 bps to 5.14%, 30-year yield up 4 bps to 5.477%. WTI advanced 2.22% to $103.66/bbl. → US homebuilder confidence plummeted to its lowest in nearly 14.5 years, as Middle East conflict pushes mortgage rates and energy-linked construction materials higher.

Exclusive Insight

The 1%+ single-day jump in Nasdaq alongside a 14.5-year low in homebuilder confidence perfectly illustrates today’s economic divergence. AI-fueled tech sector and rate-sensitive real economy sectors are moving in opposite directions. The 10-year Treasury yield holding above 5.14% means rising long-end rates are systematically weighing on rate-sensitive industries such as housing. Curfews across France and Trump’s approval rating hitting all-time lows show political risks mounting simultaneously in Europe and the US.

II. Overnight Market Action

— US Equities: Dow Jones -0.07% at 51966.03; S&P 500 +0.41% at 7690.73; Nasdaq +1.11% at 26430.89.

— European Equities: STOXX Europe 600 -0.9% at 639.1.

— Bonds: 10-year US Treasury yield +4.2 bps to 5.14%; 30-year yield +4 bps to 5.477%.

— Commodities: Nov WTI crude +2.22% at $103.66/bbl; Brent crude -0.28% at $109.55/bbl. COMEX Gold -0.49% at $4139/oz; Silver -0.04% at $56.974/oz.

— FX: EUR/USD -0.26% to 1.1210; USD/JPY +0.31% to 158.48; AUD/USD +0.49%.

— Crypto: Bitcoin +0.24% at $81960; Ethereum +0.23% at $2401.

III. Macro News

1. ⚠️ Curfew imposed across parts of France as anti-government protests turn violent: French authorities rolled out curfews in sections of Paris, Lille, Nice and other cities. Nationwide protests over the weekend descended into riots and looting, putting authorities under pressure over inadequate security deployment.

Insight: Social unrest in France marks the latest flare-up of European political risk. High energy costs and weak growth may spread social instability further.

2. 📉 Trump’s approval rating sinks to all-time low, high gasoline prices cited as main driver: Reuters/Ipsos poll shows US voters frustrated by expensive fuel and ready to punish Republicans in the Nov 3 congressional election.

Insight: Elevated oil prices are translating into political pressure. The outcome of the Nov 3 midterms will directly shape Trump’s policy stance toward Iran.

3. 📊 US October homebuilder confidence crashes to near 14.5-year low: Middle East conflict lifts mortgage rates and energy-related construction costs, continuing to weigh on housing market.

4. 💰 Goldman Sachs: Central banks net purchased 79 tonnes of gold in August, far above the pre-2022 average of 17 tonnes. Structural rise in central bank gold buying underpins bullion prices.

IV. Global Corporate News

1. 💾 Nvidia announces major breakthrough: leveraging over 8,000 GPUs to cut physical qubits required for fault-tolerant quantum simulation by 90%. Merging quantum computing and AI computing power opens new technological frontiers.

V. Key Events To Watch

· 🤖 Nvidia GTC Conference kicks off in Berlin: Critical event to watch Europe’s AI infrastructure roadmap.

· 📊 GM, GE Aerospace and RTX release earnings pre-market: Test of manufacturing and aerospace profit trends.

· 📺 Netflix reports earnings after the bell: Market focuses on subscriber growth and ad business after 6% workforce cut.