Trading day: AI light, Brazil flight
SPY•Stocks mostly rose on Monday as optimism around AI lifted Wall Street, while Brazilian assets plunged after Luiz Inacio Lula da Silva won the presidential election. The Nasdaq gained 0.8%, the S&P 500 rose 0.7%, and Brazil’s real fell 8.5%.
1. Stocks and AI funding
Wall Street rose on Monday as investors looked ahead to Big Tech earnings and fresh AI financing plans. Anthropic filed for a U.S. IPO, Meta announced plans for a $95 billion equity raise, and SpaceX said it struck a $40 billion deal with Apollo Global Management for AI chip funding. The Nasdaq gained 0.8%, the S&P 500 rose 0.7%, and the Dow added 0.3%.
2. Brazilian assets fall
Brazilian stocks fell 14% and the real dropped 8.5% after President Luiz Inacio Lula da Silva won a surprise second-round election victory. The article said investors had been caught off guard, while Lula’s ability to advance his agenda may be limited by Bolsonaro’s backing in Congress.
3. Inflation and rate decisions
Policymakers in New Zealand and Canada were widely expected to raise rates by 25 basis points, while the U.S., euro zone and Japan were expected to hold rates steady and signal possible increases in December. The article highlighted the risk that elevated energy prices could feed inflation, while a deflating AI bubble could weigh on growth and confidence.
