Running with the bulls
SPY•The S&P 500 and Nasdaq hit record highs as a pause in the bond sell-off and steady oil prices supported tech- and AI-led buying ahead of third-quarter earnings. US Treasury yields eased 3-4 basis points, while the 3-year note auction cleared at its highest yield since 2006.
1. Stocks reach records
The S&P 500 and Nasdaq hit record highs on Tuesday as bond-market selling paused and oil prices held steady. Ten S&P 500 sectors rose, software stocks reached a 2026 high, and Nvidia hit an all-time high.
2. Trade gap widens
Record US imports in August pushed the trade deficit to its widest in 17 months. The Atlanta Fed's GDPNow estimate of third-quarter growth was trimmed by a tenth of a percentage point to 3.7% after the trade data.
3. Rates and oil in focus
US Treasury yields fell 3-4 basis points, and the 3-year auction cleared at its highest yield since 2006. The Federal Reserve was due to publish minutes from its September 15-16 meeting on Wednesday; rates futures showed an 80% chance of no change later in the month. Oil held around $100 a barrel, while Vitol's CEO said up to 14 million barrels a day were shipping from the Middle East.
