Daily global market review

The major stock indices wrapped up the trading session near their peaks, with the S&P 500 gaining 1.2% and surpassing the 4,300 level. The Nasdaq Composite, Russell 2000, and Dow Jones Industrial Average all posted solid gains of 1.6%, 1.0%, and 0.9%, respectively. However, the market's tone was different at the opening bell, as stocks initially dipped in response to a sharp surge in Treasury yields. The 2-year yield and 10-year yield spiked to 5.13% and 4.87%, respectively, following the release of a much stronger-than-expected nonfarm payrolls report, which showed a gain of 336,000 jobs in September, well above the consensus estimate of 158,000. The strong jobs data had investors contemplating its potential impact on Federal Reserve policy. Moreover, the September nonfarm payrolls figure came with upward revisions to the July and August data, reflecting an additional 119,000 jobs created than previously reported. This data shift prompted the fed funds futures market to increase the probability of a rate hike in November to 31.8% from 20.1% the previous day and a rate hike in December to 42.6% from 33.1%, as indicated by the CME FedWatch Tool.

Nonetheless, Treasury yields retreated from their post-employment report highs, likely due to a perception that the bond market had been oversold in the short term. Additionally, some optimism emerged as average hourly earnings growth moderated to 4.2% year-over-year from 4.3% in August. The 2-year note yield settled at 5.06%, still three basis points higher than the previous day, while the 10-year note yield increased by seven basis points to 4.78%.

As Treasury yields pulled back, the stock market responded positively and reversed its course, likely driven by some short-covering activity. Mega-cap stocks led the rebound, with the Vanguard Mega Cap Growth ETF (MGK) gaining 1.7%. Market breadth also favored the upside as advancing stocks outpaced decliners. Ten of the 11 S&P 500 sectors posted gains, with the information technology sector leading with a 1.9% increase, while the consumer staples sector was the sole decliner, down 0.5%.

It's worth noting that the Treasury market will be closed on Monday for the Columbus Day holiday, also known as Indigenous Peoples' Day.

In terms of economic data, the September nonfarm payrolls report indicated robust job growth, which is positive for the economy but could imply a Federal Reserve that remains cautious about raising rates further or cutting them in the near future. Consumer credit for August showed a decrease of $15.6 billion, exceeding the consensus estimate of $12.0 billion. This decline in non-revolving credit marked the largest drop since December 2015, reflecting stricter lending standards and reduced borrowing amid rising interest rates.

In the bond market, the 10-year Treasury Note experienced a decline of 27/32, pushing the yield to 4.78%. On the New York Stock Exchange (NYSE), there were 1,799 advancing stocks and 1,011 declining stocks, with a total trading volume of 939 million shares. Over on the Nasdaq, 2,650 stocks advanced, while 1,628 declined, with a substantial trading volume of 4.3 billion shares.

Taking a look at the industry performance, strength was observed in the Health Care, Information Technology, Communication Services, Industrials, Materials, and Financials sectors. Conversely, the Consumer Staples sector displayed weakness.

The market was primarily focused on analyzing the September employment report, which revealed a significant increase in private payrolls. Additionally, Treasury yields retreated from their post-employment report highs, contributing to the market's dynamics. Mega-cap stocks exhibited relative strength, and there was a prevailing sentiment that the market may be poised for a rebound.

In the realm of stock market indices, the Dow Jones in the United States stood at 33,407.58, marking a positive change of 288.01 points, equivalent to a 0.87% increase. The S&P 500 also experienced gains, reaching 4,308.50 with a change of 50.31 points, representing a 1.18% rise. The NASDAQ index reached 13,431.34, registering a significant increase of 211.51 points, or 1.60%. Meanwhile, the VIX index decreased by 1.04 points, translating to a 5.62% decline, and settled at 17.45. The Russell 2000 added 14.05 points, resulting in a 0.81% gain, while the S&P/TSX Composite in Canada reached 19,246.07, increasing by 108.26 points, or 0.57%. The S&P/TSX 60 also climbed by 5.11 points (0.44%), ending at 1,154.14, and the BOVESPA in Brazil recorded a 0.78% increase, reaching 114,169.63 after gaining 885.55 points. In Chile, the S&P IPSA index rose by 43.46 points (0.77%), settling at 5,659.29, while the S&P/BMV IPC in Mexico saw a 0.43% increase, closing at 49,666.50 after gaining 211.91 points.

Moving to European markets, the STOXX Europe 50 reached 3,888.74 with a positive change of 28.99 points (0.75%), while the STOXX Europe 600 increased by 3.62 points (0.82%) to reach 444.93. In the United Kingdom, the FTSE 100 closed at 7,494.58, marking a 0.58% gain after adding 43.04 points. Italy's FTSE MIB index experienced a 1.16% increase, reaching 27,810.61 with a change of 319.80 points. France's CAC 40 climbed by 61.90 points (0.88%) to end at 7,060.15. However, Japan's Nikkei 225 index saw a slight decrease of 80.69 points (0.26%), closing at 30,994.67, while Hong Kong's Hang Seng surged by 272.11 points (1.58%) to reach 17,485.98. The Shanghai Composite in China remained unchanged at 3,110.48. In Australia, the S&P/ASX 200 recorded a 0.41% increase, reaching 6,954.20 after a gain of 28.70 points. South Korea's KOSPI index added 5.13 points (0.21%), ending at 2,408.73, and Taiwan SE closed at 16,520.57 after a 0.41% increase, gaining 67.05 points.

In the Indian stock market, various indices exhibited movements on the trading day of October 6th, 2023. The BSE MidCap index closed at 32,077.66, marking a 0.66% increase with a gain of 211.24 points. The BSE Sensex reached 65,995.63, reflecting a 0.55% rise, and it gained 364.06 points. The BSE SmallCap index closed at 37,860.58, showing a 0.56% increase with a gain of 211.07 points. On the other hand, the India VIX index had a decline of -5.85%, resulting in a drop of -0.6400 points, closing at 10.3000. Among the highest gainers were the NIFTY Smallcap 100, which rose by 0.80%, gaining 101.85 points, and the Nifty Midcap 50, with a 0.78% increase and a gain of 89.80 points. Additionally, the Nifty Next 50 saw a rise of 0.63%, gaining 280.75 points. Among the highest losers was the India VIX index, with a decrease of -5.85%, or -0.6400 points.

• Rivian Automotive, Inc. Class A (RIVN) currently has a price of $18.92, reflecting a positive change of $0.65 or a 3.56% increase. The trading volume for this stock is 120 million, and it has ranged between $11.68 and $37.39 over the past 52 weeks.
• Tesla, Inc. (TSLA) is priced at $260.53, with a minimal change of $0.48 or a 0.18% rise. The stock has seen a trading volume of 118 million and has had a 52-week range between $101.81 and $299.29.
• Palantir Technologies Inc. Class A (PLTR) currently trades at $16.61, with a notable increase of $0.80 or 5.06%. The stock's trading volume is 65 million, and its 52-week range has been between $5.92 and $20.24.
• Advanced Micro Devices, Inc. (AMD) is priced at $107.24, marking a significant increase of $4.33 or 4.21%. The stock has been traded with a volume of 65 million shares and has ranged between $54.57 and $132.83 over the past year.
• Bank of America Corp (BAC) has a current price of $26.07, with a minimal change of $0.01 or 0.04%. The stock's trading volume is 58 million, and it has had a 52-week range between $25.46 and $38.60.
• Ford Motor Company (F) is currently trading at $12.00, with a positive change of $0.10 or 0.84%. The trading volume for this stock is 57 million, and its 52-week range has been between $10.90 and $15.42.
• Apple Inc. (AAPL) has a price of $177.49, reflecting an increase of $2.58 or 1.48%. The stock's trading volume stands at 57 million, and it has ranged between $124.17 and $198.23 over the past year.
• AT&T Inc. (T) is priced at $14.45, with a decrease of $0.10 or 0.70%. The trading volume for this stock is 53 million, and it has had a 52-week range between $13.43 and $21.53.
• Amazon Inc. (AMZN) is currently trading at $127.96, with a positive change of $2.00 or 1.59%. The stock's trading volume stands at 46 million, and it has ranged between $81.43 and $145.86 over the past year.
• NVIDIA Corporation (NVDA) has a current price of $457.62, marking a significant increase of $10.74 or 2.40%. The stock's trading volume is 43 million, and it has had a 52-week range between $108.13 and $502.66.
• Falcon's Beyond Global, Inc. Class A (FBYD) is currently priced at $17.40, showing a significant increase of $9.64 or 124.23%. The trading volume for this stock is 318,000 shares, and it has had a 52-week range between $15.00 and $40.04.
• American Oncology Network, Inc. Class A (AONC) trades at $7.93, marking an increase of $2.01 or 33.95%. The stock has been traded with a volume of 4 million shares, and its 52-week range has been between $5.58 and $39.60.
• ALX Oncology Holdings, Inc. (ALXO) is currently priced at $8.35, with a notable increase of $1.79 or 27.38%. The trading volume for this stock stands at 7 million shares, and it has ranged between $3.94 and $13.64 over the past year.
• NuScale Power Corporation Class A (SMR) has a current price of $5.75, reflecting an increase of $1.07 or 22.86%. The stock's trading volume is 14 million shares, and it has had a 52-week range between $4.47 and $12.36.
• Vigil Neuroscience, Inc. (VIGL) trades at $6.72, with a positive change of $1.22 or 22.18%. The trading volume for this stock is 95,000 shares, and its 52-week range stands between $4.68 and $16.77.
• Coya Therapeutics, Inc. (COYA) is currently priced at $4.04, showing an increase of $0.66 or 19.53%. The stock has been traded with a volume of 93,000 shares, and it has had a 52-week range between $3.21 and $8.00.
• CervoMed Inc. (CRVO) has a price of $6.41, reflecting an increase of $1.04 or 19.37%. The stock's trading volume is 46,000 shares, and it has ranged between $4.14 and $14.37 over the past year.
• Gritstone bio, Inc. (GRTS) is priced at $2.85, with a positive change of $0.44 or 18.26%. The stock has seen a trading volume of 9 million shares, and its 52-week range stands between $1.14 and $4.05.
• Hippo Holdings Inc (HIPO) has a current price of $8.08, marking an increase of $1.18 or 17.10%. The trading volume for this stock is 639,000 shares, and it has had a 52-week range between $6.64 and $20.39.
• Tenaya Therapeutics, Inc. (TNYA) trades at $2.57, with a positive change of $0.37 or 16.82%. The stock's trading volume is 767,000 shares, and it has ranged between $1.64 and $8.09 over the past year.

Lastly, in the world of cryptocurrencies, the Nasdaq Crypto Index reached 1,585.26, marking a 2.05% increase after gaining 31.77 points. Bitcoin stood at 27,981.00 with a 2.05% increase, adding 563.00 points. Ether also saw a 2.25% rise, reaching 1,648.00 with a change of 36.30 points. Litecoin added 0.62 points (0.96%) to reach 65.52, while XRP remained steady at 0.53, marking a 0.59% change.

In the realm of bonds and interest rates, the 3 Month Treasury yield stands at 5.348%, experiencing a slight increase of 0.015%. The 2 Year Treasury yield is at 5.075%, with a more significant increase of 0.059%. The 5 Year Treasury yield registers at 4.758%, showing a notable increase of 0.080%. Similarly, the 10 Year Treasury yield stands at 4.802%, reflecting a substantial rise of 0.093%. The 30 Year Treasury yield is at 4.973%, with an increase of 0.085%.

Shifting to currency exchange rates, the Euro to US Dollar rate is 1.0589, marking a 0.36% change. The British Pound to US Dollar rate stands at 1.2240, with a 0.40% change. The US Dollar to Canadian Dollar rate is 1.3684, showing a minor decrease of 0.15%. The US Dollar to Swiss Franc rate is 0.9100, reflecting a decrease of 0.31%. Lastly, the US Dollar to Japanese Yen rate is 149.2250, experiencing a notable increase of 0.50% or 0.74 points.

The Bloomberg Commodity index (BCOMTR:IND) increased by 2.14 points, reflecting a 0.93% rise, reaching 232.54. The UBS Bloomberg CMCI index (CMCITR:IND) also showed positive movement, gaining 9.30 points (0.62%) and settling at 1,514.56. The Reuters/Jefferies CRB index (CRYTR:IND) experienced a 2.60 point (0.84%) increase, closing at 312.43. The Rogers International index (RICIGLTR:IND) saw an uptick of 28.24 points (0.75%), ending the trading session at 3,773.10.

Within the energy sector, various commodities exhibited mixed results. WTI Crude Oil (CL1:COM) inched up by 0.51 USD per barrel (0.62%) to reach 82.82 USD/bbl. Brent Crude (CO1:COM) also saw a minor increase of 0.38 USD/bbl (0.45%) to settle at 84.45 USD/bbl. RBOB Gasoline (XB1:COM) showed a slight gain of 0.23 USd/gal. (0.11%) at 219.13 USd/gal. Natural Gas (NG1:COM) experienced a significant surge, rising by 0.16 USD/MMBtu (4.99%) to reach 3.32 USD/MMBtu. Heating Oil (HO1:COM) increased by 3.85 USd/gal. (1.34%) and ended at 290.72 USd/gal.

In the precious and industrial metals sector, Gold (GC1:COM) rose by 13.00 USD/t oz. (0.71%) to 1,844.80 USD/t oz., while Silver (SI1:COM) saw a substantial gain of 0.70 USD/t oz. (3.31%) to close at 21.72 USD/t oz. Copper (HG1:COM) experienced a noteworthy increase of 8.10 USd/lb. (2.28%), reaching 363.30 USd/lb. Platinum Spot (XPTUSD:CUR) also performed well, rising by 16.96 USD/t oz. (1.96%) to reach 880.97 USD/t oz.

In the agricultural sector, Corn (C 1:COM) faced a decrease of 5.00 USd/bu. (1.00%) and settled at 492.50 USd/bu. Wheat (W 1:COM) experienced a more significant decline, dropping by 9.25 USd/bu. (1.60%) to finish at 569.00 USd/bu. Cocoa (CC1:COM) saw an increase of 53.00 USD/MT (1.56%) to reach 3,453.00 USD/MT, while Cotton #2 (CT1:COM) had a slight uptick of 0.60 USd/lb. (0.69%) to close at 87.14 USd/lb. Live Cattle (LC1:COM) gained 1.23 USd/lb. (0.66%) and settled at 186.60 USd/lb.

• Rising Bond Yields Impact Stocks: The data suggests that rising bond yields are putting pressure on stocks. This trend could continue if economic data remains strong, increasing the likelihood of further rate hikes. Investors are sensitive to central bank policies, so robust economic news can be interpreted as negative for the stock market.
• Strong Labor Markets: Both in Canada and the United States, the employment data points to strong labor markets. This suggests that households have the potential to keep supporting economic growth, which is a positive sign for the overall economy.
• Narrowing Yield Spread: The difference between short-term and long-term yields has narrowed significantly, with the 2-year and 10-year yields coming closer together. This yield curve flattening can be seen as a signal of potential economic concerns, as it may indicate reduced confidence in longer-term economic prospects.
• Oil Price Volatility: Oil prices are mentioned as being on pace for their worst weekly performance since March, down almost 10%. This volatility in oil prices can have ripple effects on the broader economy and markets, especially in energy-related sectors.
• Inflation and Earnings Outlook: Inflation remains a key concern, with expectations of moderating headline CPI and core inflation. Next week's consumer and producer price data will be crucial in shaping market sentiment. Additionally, the earnings season is approaching, and while there has been a decline in earnings from the peak, corporate revenue growth has been resilient. Expectations are for a rebound in earnings, which could provide support for stocks in the future.