With synchronized global monetary easing in full effect and U.S. elections just weeks away, bond markets face rising volatility and potential shifts, with inflation risks and fiscal policies likely to play a pivotal role in shaping the near-term outlook.

Nvidia's market capitalisation possibly overtaking the Nikkei index, investors back the Magnificent 7, and global easing accelerates. Each week, the Syz investment team takes you through the last seven days in seven charts.

US equities recorded another week of gains. Banks were big winners this week while Energy stocks pulled back in sympathy with oil prices, which retreated as fears of possible Israeli attacks on Iran’s oil and gas infrastructure subsided. The small-cap Russell 2000 Index and the S&P MidCap 400 Index outperformed large-caps.  After lagging for much of the week, the Nasdaq Composite rallied during Friday’s trading session. Strong quarterly results from Taiwan Semiconductor Manufacturing boosted AI-related stocks. The Nasdaq also received a lift from Netflix, which grew its subscriber numbers and expanded its operating margins by more than expected in the third quarter. On the Macro side, US retail sales and weekly jobless claims surprised positively while industrial production dropped 0.3% in September after increasing 0.3% in the preceding month.

Flash note

Rising geopolitical tensions and inflation concerns pushed U.S. 10-year Treasury yields to 4.1%, as market expectations shifted towards a higher U.S. terminal rate, reflecting increased uncertainty.

The S&P 500 is set to deliver its best performance of the 21st century, even as September inflation in the U.S. jumps unexpectedly. Meanwhile, debit interest rates soar past 23%, adding pressure to consumers. Each week, the Syz investment team takes you through the last seven days in seven charts.

The S&P 500 Index and the Dow Jones both moved to record highs over the week, helped by some upside surprises to kick off earnings season. Shares in JPMorgan Chase and Wells Fargo rose on Friday after they reported smaller-than-feared declines in Q3 profits. A solid rise in NVIDIA shares helped growth stocks outperform value stocks and compensate for a decline in Google parent Alphabet. Tesla was also weak following a skeptical response to the company’s highly anticipated unveiling of its new “robotaxis” and “robovans.” The earnings focus arguably offset several disappointing economic reports over the week: headline and core (less food and energy) inflation rose in September by 0.2% and 0.3%, respectively, both a tick above expectations.

The Fed cuts rates, meanwhile Europe teeters on the brink of recession, China ramps up stimulus, and U.S. debt surges. Developed market equities surge amid global challenges, while fixed income rallies on easing rate expectations. Each quarter, the Syz investment team takes you through the last 3 months in 10 charts.

After a week of better-than-expected U.S. economic data and rising oil prices, bond markets adjusted their expectations, now aligning with the Fed's forecast of two rate cuts by year-end, removing a previously anticipated full cut.

Abundant liquidity in the market is supporting gold and stocks and may even lead to a new bear market rally in China, while the Fed's rate cut may have minimal impact on U.S. equities.