Wall Street closed mixed overnight as markets grappled with weak earnings reports and data that supported the possibility of sustained low interest rates. The Dow tumbled 367 points (-1.12%). Up just 3 points at best. Down 457 points at worst. The S&P 500 erased earlier gains and fell 0.48%, while the NASDAQ added 0.38% amid mixed earnings reports. Fresh data showed the Feds preferred inflation reading rose 0.3% MoM, while spending data topped estimates. Treasury yields initially rose on economic data before easing lower. 2Y yield, which typically moves in step with interest rate expectations, fell 3.3bps. USD Index flat, Gold topped key $2,000 level, and Oil jumped 2% in a choppy day of trade after the US military struck Iranian targets in Syria. On the corporate front, Amazon rose 6.8% after beating earning expectations and bullish comments around AI. Intel jumped 9.29% after results exceeded expectations, lifting the whole sector. Philadelphia SE Semiconductor index advanced 1%. Chevron and Exxon Mobil fell 5.9% and 1.6%, both missing profit estimates, while Ford sank 11.8% after it withdrew its full-year forecast due to uncertainty over the pending deal with UAW union and warned of continued pressure on EVs.

On the economic front, core PCE prices (excluding food and energy) rose 0.3% MoM, in line with expectations, accelerating from 0.1% from the previous month. The annual rate, regarded as the Fed’s preferred inflation measure, eased to 3.7%, its lowest level since May-21. Additionally, US personal spending rose by 0.7% MoM in Sep-23, up from 0.4% in August, exceeding market expectations of a 0.5% advance.

• Base metals are higher. Copper +1.58%, Nickel +1.33%, Zinc +1.11%, Lead +1.01%, and Tin +0.67%.
• Oil prices rose sharply, hitting a one-week high on Middle East Tensions. Brent Crude +2.19% and WTI +2.68%.
• Gold up 1.05%, climbing over $2,000, marking its third consecutive week of gains.
• 10Y yield: US 4.837%, Australia 4.813%, and Germany 2.814%.

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