Welcome to Gold Dragon Daily, an AI-powered podcast by Gold Dragon Investments, helping you win the game of passive investing. For more information, visit GotTheGold.com. I'm your host, Justin 2.0.

This is Market Pulse — Wednesday's numbers.

Equities:
• Markets mixed Tuesday
• Dow Jones hit fresh record high, up 1.18% to 47,928
• S&P 500 added 0.2%, bouncing back after first losing week in four
• Nasdaq lagged, Nvidia down 3% on AI valuation concerns
• Tech sector rotation into value and defensive sectors
• Healthcare leading gains: Eli Lilly, Johnson & Johnson, AbbVie all up over 2%
• Market watching potential end to government shutdown
• Concerns over elevated tech valuations persist

Oil:
• WTI at $60.49, down 1.0% Tuesday
• Brent at $64.63, down 0.81%
• Both under pressure on oversupply fears
• OPEC and IEA releasing reports Wednesday outlining production trends through 2026
• U.S. sanctions on Russian energy firms disrupting crude flows
• Increased exports to India from Saudi Arabia, Iraq, Kuwait
• Market anticipating fresh supply-demand data
• Potential government shutdown end could boost demand

Gas:
• Henry Hub at $4.56 per MMBtu, down 0.09% Tuesday
• Up 46% month-over-month, up 53% year-over-year
• Highest since December 2022
• Colder weather expectations driving prices higher
• Power demand supporting
• Increased LNG export activity
• Storage levels tightening heading into winter

Production:
• Permian Basin output steady around 6.6 million barrels per day
• Operators maintaining discipline with WTI at $60
• Hedging activity elevated
• Riley Permian hedged 66% of Q4 production at $65 floor
• Civitas Resources reporting $65 million hedging gains
• Permian Resources expecting 75% of 2026 gas production hedged or priced at premium markets
• Drilling activity slowing on price pressure

Real Estate:
• Cap rates stabilizing Q4
• Apartments at 5.63%, highest in eight years
• Apartment transactions surged Q3: $43.8 billion in deals
• Industrial tightened to 5.0%, sustained institutional demand
• Office widened to 7.5%, distressed assets at significant discounts
• Data centers at 5.8%
• Fed expected to stabilize rates between 3.5% and 4.0% by year-end
• Transaction volumes improving modestly
• Construction starts down significantly

Credit:
• Markets resilient
• Investment-grade spreads stable
• High-yield spreads widened slightly
• Credit investors proving resilient to political uncertainty
• Recent defaults not yet pricing into public markets
• Factors to watch: inflation reacceleration, economic slowdown signals
• Corporate refinancing activity strong heading into 2026

Bottom Line:
Dow hit record 47,928, S&P up 0.2%, Nasdaq lagged on tech rotation. Oil down 1.0% on oversupply fears, WTI at $60, Brent at $65. Gas at $4.56, up 53% year-over-year on winter demand. Permian steady, operators hedging aggressively. Real estate stabilizing, apartments at 5.63%, industrial at 5.0%. Credit markets resilient despite volatility. Target sub-$50 breakevens, hedge floors above $75. Industrial caps sub-5.7%, senior secured credit SOFR plus 650, LTV under 65%.

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