AI concerns weigh on US dollar, Convera says
SPY•Weak technology earnings and renewed concerns over AI investment pushed US yields and the dollar index lower. The Federal Reserve held rates at 3.75%-4.00%, while markets also weighed potential US policy changes, rising oil prices and Australian inflation.
1. Dollar and yields fall
Weak technology earnings weighed on equities, pushing US yields and the dollar index lower as concerns over AI investments resurfaced. The Federal Reserve held rates at 3.75%-4.00%; two dissenters favored a 25-basis-point increase, keeping further tightening in focus.
2. Other market concerns
Ahead of the November 3 midterms, odds of a Democratic sweep stood near 68%, raising market concerns over tighter AI regulation and fiscal gridlock. Brent crude rose more than 12% this month, nearing four-year highs amid reports of US preparations for a military campaign against Iran.
3. Australian rate outlook
Markets priced a 79% probability of an Australian rate increase on November 3, as annual inflation accelerated to 4.3%.
