U.S. import prices rose 1.1% month over month and 8.1% year over year in SeptemberImport cost pressures remain high, making it increasingly difficult for inflation to cool.
Fed Chair Warsh gave no indication of an immediate rate hike in Octobereasing market concerns about monetary tightening for a time, but inflation risks remain unresolved.
The U.S. dollar index fell to around 101.65, while Treasury yields continued to declineproviding some support for gold and certain risk assets.
U.S. stock futures remained mixed, with the Nasdaq underperforming the Dowas technology stocks, particularly semiconductors, remained under pressure from the recent prolonged pullback.
Chip stocks such as Micron and Intel continued to weaken in premarket tradingWhether SOXX can outperform the NDX again remains key to determining whether the sector has stabilized.
CoreWeave bond yields rose to around 15%.AI data centers’ high leverage and financing costs continue to be a market focus.
Indonesian stocks plunged more than 11% at one point.The market also faces the risk of a potential MSCI downgrade, with pressure from outflows in emerging markets rising significantly.
Gold rebounded to around $4,170.However, precious-metals funds saw outflows, and the short-term recovery has yet to confirm a trend reversal.
BTC ETFs returned to modest net inflows, while ETH and SOL continued to see outflows.Overall, capital flows in the crypto market have yet to turn broadly positive.
Brent held near $106 as Trump again discussed Iran’s nuclear facilities; Middle East conflict and risks around the Strait of Hormuz continue to support oil prices.
In a nutshell:
Tonight’s main theme is that a pullback in the dollar and U.S. Treasuries offered some relief, but risks around semiconductors, AI financing, and Middle East energy continue to weigh on a broad market recovery.
