AI trade rebounds as investors await midterms
SPY•Heavyweight technology stocks rebounded on Tuesday, lifting the Nasdaq 0.8% and S&P 500 0.4%, while the Dow fell 0.4%. Investors also weighed US economic data, currency moves and upcoming election results.
1. Tech stocks lead rebound
A rebound in heavyweight technology stocks lifted the S&P 500 and Nasdaq on Tuesday. The Nasdaq rose 0.8% and the S&P 500 gained 0.4%, while the Dow fell 0.4%; technology shares advanced 1.3% and the Philadelphia chip index rose 2.6%. AMD climbed 8% after results.
2. Economic data and markets
US job openings rose sharply in September and layoffs fell, while factory orders increased faster than expected. Business demand for credit contracted for the first time in more than a year. US yields rose by as much as 7 basis points at the long end, while oil fell about 1% and gold declined 0.5%, remaining below $4,000 an ounce.
3. China and Brazil in focus
China raised its foreign-exchange reserve requirement to slow the yuan's appreciation, ending a 13-day run of gains and prompting its steepest one-day decline in five months. In Brazil, the Bovespa has fallen 20% since President Lula's reelection, and the real has lost nearly 10%; the central bank announces its rate decision Wednesday.
