Major Indices
| Index | Performance |
|---|---|
| S&P 500 | +0.48% |
| DOW Jones | -2.48% |
| NASDAQ | +1.75% |
| FTSE 100 | -1.49% |
| DAX | -1.02% |
| Nikkei 225 | -2.71% |
| Shangai Composite | -0.7% |
World Sector Performance
Treasury Bond Market Collapse
Since March 2020, treasury bonds with maturities of 10 years or more have plummeted 46%.These losses are almost in line with stock market losses seen during the dot com bubble burst and the aftermath of 2008. 10 Year yields have now soared to 4.887% this week. Brad Setser, a former Treasury official wrote recently stating that China are not dumping US bonds, having held a stable portfolio since 2015. The graph below shows their estimated portfolio of US Debt.
Brad Setser/Council on Foreign Relations
OpenAI's Busy Week
Sam Altman, the CEO of OpenAI claimed that he owns zero percent of the company, although investor David Sacks speculated Altman actually controls OpenAI through its nonprofit parent company where he likely has significant control.
OpenAI are supposedly gearing up for a $90bn valuation, which is triple their previous valuation set in April, which is a similar gain to NVIDIA's growth for the whole year! There are rumours of OpenAI launching AI-based smartphones although this is purely speculation right now.
Nonfarm Payrolls
Nonfarm payrolls increased by 336,000 in September, well exceeding expectations of 170,000. This is the stronest job gain in 8 months and should give the FED confidence in keeping interest rates higher for longer.
Nonfarm Payrolls
The Fall of NFT's (for now)
NFTs are entries on a blockchain that represent the ownership of assets- usually a digital asset such as an image file. They were extremely popular in 2021/22 and the record most expensive NFT was sold for $91.8mn. Research now suggests that 95% of NFTs are totally worthless now though, and that also 79% of all NFT collections have remained unsold.
Other Headlines
- Palestinian group Hamas have launched an attack on Israel
- Russian currency has lost a quarter of its value since the invasion of Ukraine
- TSLA shares rose just under 6% on Wednesday
- Russia's defence spending has tripled since the start of its invasion on Ukraine
- Oil Prices plunged by more than $5 a barrel on Wednesday (the biggest single day price drop in over a year)
Coming Up Next Week...
- Wednesday: US PPI MoM, FOMC Minutes
- Thursday: UK GDP
US Inflation data - Friday: China Inflation Rate YoY, Balance of Trade