Top U.S. Stories

  • Nasdaq closes at a record. The Nasdaq Composite rose 1.05% to a record 27,477.31, while the S&P 500 gained 0.66% to 7,773.95 as big tech outweighed worries over oil and bond yields. Why it matters: Stocks are rallying even with the 10-year Treasury yield at 5.31% — a fragile mix if inflation data surprises (AP).
  • Supreme Court opens its new term with a major climate case. Justices heard arguments in Suncor Energy v. Boulder County, where Suncor and ExxonMobil seek to end a Colorado lawsuit over climate damages (CBS News). Why it matters: Dozens of similar suits by state and local governments could rise or fall on this ruling (Earthjustice).
  • Services sector keeps growing, but prices stay hot. The ISM Services PMI came in at 54.9 for September, down from 55.4 and the 27th straight month of expansion. The prices index rose to 74, its highest since July 2022 (ISM release). Why it matters: Sticky service-sector prices make it harder for the Fed to signal relief.
  • Treasury warns foreign banks over Iran. The Treasury Department told foreign financial institutions that continued business with Iran could bring sanctions without advance notice (U.S. Treasury OFAC).
  • Brazil-linked stocks soar. U.S.-listed shares of Itaú Unibanco and Banco Bradesco jumped 16% and 19% after Flávio Bolsonaro finished first in Brazil’s presidential vote, setting up an October 25 runoff (CNBC).

Compass Insight

Monday’s message was simple: markets care more about rates than ballots. Spain called a snap election and Brazil heads to a runoff, yet stocks climbed as last week’s weak jobs report eased fears of an immediate Fed hike. That relief is thin, though. Ten-year yields sit above 5%, the ISM prices gauge shows inflation pressure has not gone away, and Wall Street still generally expects at least one more hike by year-end. Oil dipped, but Brent is still above $100 with the Strait of Hormuz closed. In the short term, watch Fed minutes and Treasury yields for any shift in the rate outlook. Over the longer run, the path of Hormuz shipping and the November midterms are likely to shape energy costs and market sentiment more than any single data point.

Markets

  • Dow: 51,267.90, up 90.94 points (+0.18%)
  • S&P 500: 7,773.95, up 51.23 points (+0.66%)
  • Nasdaq: 27,477.31, up 286.45 points (+1.05%; record close)
  • Oil: WTI fell $1.68, or 1.84%, to $89.43; Brent fell $1.93, or 1.89%, to $100.32
  • Japan: The Nikkei 225 jumped 2.40% to 69,946.86, briefly topping 70,000 for the first time in three months on chip-stock buying.

Stocks in Focus

  • PTC surged 33.5% after agreeing to be acquired by Schneider Electric for $205 a share in a deal valued at about $22.6 billion (AP).
  • Vaxcyte jumped about 30% on positive Phase 3 results for its adult pneumococcal vaccine (CNBC).
  • DraftKings rose over 5% after Bank of America upgraded it to buy (same source).

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Auto-generated and AI-written. Not investment advice.