U.S. stocks fell for the week as renewed U.S.-China trade tensions and concerns over the prolonged government shutdown weighed on sentiment. Early gains, driven by enthusiasm for AI-related companies and a major AMD-OpenAI partnership that boosted AMD shares over 20%, were erased after President Trump threatened major new tariffs on Chinese goods. Gold surged past $4,000 per ounce, reflecting heightened geopolitical and economic uncertainty. Investors are now focused on the upcoming Q3 earnings season, especially since the shutdown has halted major economic data releases. Analysts expect the S&P 500 to post its ninth straight quarter of earnings growth. Federal Reserve minutes indicated cautious support for further rate cuts, highlighting persistent inflation risks and a weakening labor market. Consumer sentiment held steady in October at 55, with mixed views on personal finances and inflation expectations easing slightly. In fixed income, U.S. Treasuries rallied as yields fell amid trade fears and safe-haven demand. Investment-grade corporates lagged Treasuries due to light trading and selectivity. High yield bonds weakened as sellers dominated in a softer macro environment. Cryptos had their worst week since June. Dollar rallied while oil tanked. Crude prices crashed over 4% on Friday on the back of the Israel-Gaza peace deal and the China tariffs talk as fears of a supply surplus remain over-arching, banging WTI back below $60 for the first time since early May. International stocks were mixed during the week.
Have a great week-end
Charles for the team