The US government shutdown is casting uncertainties on growth and US rates outlooks, weighing on bond market performances

Global equity markets turned lower as investors shifted to a risk-off stance, ending a recent winning streak.

Meanwhile, we explain fiscal dominance and the global shift in nuclear power. Each week, the Syz investment team takes you through the last seven days in seven charts.

Despite a modest rebound on Friday afternoon, all major US equity indices declined over the week. The Nasdaq underperformed and recorded its weakest weekly performance since the sharp post–Liberation Day decline in early April. The market pullback can be explained by a number of factors: growing unease surrounding artificial intelligence developments, signs of labor market softening, ongoing tariff hearings, a lack of meaningful economic data, rising concerns over private credit, and persistently hawkish commentary from Federal Reserve officials. The U.S. federal government shutdown reached the longest on record during the week, which also appeared to weigh on broader sentiment.

A hawkish-sounding Powell drags government bonds and credit lower while elections drive EM debt higher

Equity markets ended October on a cautious note. The S&P 500 gained modestly though breadth narrowed sharply as the Mag-7 once again dominated leadership.

The Fed flinches, the bull runs, and the AI boom isn’t slowing, with NVIDIA claiming 8% of the S&P 500. Each week, the Syz investment team takes you through the last seven days in seven charts.

The Nasdaq Composite led gains, driven by strength in mega-cap tech firms benefiting from AI-related spending. Market gains were narrow — the S&P 500 rose even though most sectors fell, and the equal-weighted index lagged by 2.7%. About two-thirds of S&P 500 companies have reported earnings and 83% are beating expectations. Results from the “Magnificent Seven” were mixed: Microsoft, Apple, and Meta fell post-earnings, while Amazon and Alphabet rose. NVIDIA’s shares surged, briefly pushing its market value above $5 trillion. U.S. President Donald Trump and China’s President Xi Jinping agreed to a one-year trade truce, easing tensions between the two nations. The deal included U.S. tariff reductions, China suspending export controls on rare earths, and resuming purchases of U.S. agricultural goods. Meanwhile, the Federal Reserve cut interest rates by 25 basis points to 3.75%–4.00%, as expected, but signaled caution on further cuts.

Flash note

Government bonds delivered mixed performance last week while credit and EM debt rose