Meanwhile, US earnings growth leaves the rest of the world behind. Each week, the Syz investment team takes you through the last seven days in seven charts.

The S&P 500 rose despite inflation and interest rate concerns. Gains were concentrated in technology and communication services, supported by strong uptake of Meta’s consumer AI agent and expectations of greater computing demand. Utilities and energy lagged, large-cap growth outperformed value, and the Russell 2000 declined. U.S. economic data remained strong. September’s composite PMI rose to 58.4 from 58.0, a 62-month high, while both initial and continuing jobless claims came in below expectations. Alongside hawkish Fed comments and reports of possible restrictions on U.S. diesel exports, the data reinforced inflation concerns and expectations of further rate increases. US Treasuries sold off after a weak five-year auction cleared at 5.033%, the highest yield since 2006.

Meanwhile, bond yields are rising across major markets. Each week, the Syz investment team takes you through the last seven days in seven charts.

U.S. markets finished a volatile week mixed, caught between rising energy costs, a more hawkish Fed and renewed strength in AI stocks. The Nasdaq outperformed as semiconductor and other AI-related shares recovered from an early sell-off, while the Dow and small caps declined. Growth stocks also held up better than value. The Fed raised its policy rate by 25 basis points to 3.75%–4.00%, its first increase since 2023. The unanimous vote was more hawkish than many expected, and policymakers signaled another increase before year-end. Earlier in the week, the 10-year Treasury yield briefly reached 5.04%, its highest level since 2007, before easing after the decision. Oil added to the market’s uncertainty. Attacks on Saudi energy infrastructure initially pushed crude prices higher, while record U.S. diesel prices sharpened inflation concerns.

Flash note - Investment strategy

Nothing seems to curb the 10-year Treasury yield’s rise. Meanwhile, Japan’s currency defense is drying up it’s FX reserves and the S&P 500 is hiding something important. Each week, the Syz investment team takes you through the last seven days in seven charts.

U.S. stocks ended the holiday-shortened week lower as escalating Middle East tensions pushed oil prices toward $110 per barrel, reviving inflation concerns and driving Treasury yields higher. Small and mid-caps suffered most: the Russell 2000 fell 2.4% and the S&P Mid-Cap 400 lost 1.9%, while the Nasdaq declined just 0.7%.The 10-year Treasury yield approached 5%, pressured by higher energy prices, persistent inflation, heavy government issuance and a smaller-than-expected Treasury buyback. August data reinforced expectations of a September Fed rate hike. Producer prices rose 5.4% year-on-year, while core consumer prices increased 0.3% month-on-month—slightly above forecasts. Markets subsequently raised the probability of a September hike to 87%. Meanwhile, jobless claims remained stable, suggesting continued labour-market resilience.

Meanwhile, European countries are having their own bond crisis. Each week, the Syz investment team takes you through the last seven days in seven charts.

Major U.S. stock indexes finished the week narrowly mixed as investors weighed renewed U.S.-Iran hostilities, rising oil prices, a better-than-expected jobs report, and shifting Federal Reserve monetary policy expectations. The Dow Jones Industrial Average lost 0.27%, while the Nasdaq Composite added 0.40%. The S&P 500 and the Russell 2000 indexes were little changed. Growth stocks outperformed their value counterparts by the widest margin in a month. Within the S&P 500, the energy sector posted the strongest gains as oil prices rose amid renewed Middle East tensions. Treasury yields moved higher alongside oil prices, with the 10-year reaching roughly 4.82% intraday on Wednesday before retracing somewhat on Thursday after Fed Governor Christopher Waller said he would be inclined to keep rates unchanged if incoming data confirm that disinflation is continuing.

Victoria’s Secret is back: a $100,000 investment has quadrupled since the Fashion Show’s return was announced. Each week, the Syz investment team takes you through the last seven days in seven charts.