See the ‘Market Data’ post❗
U.S. stocks pulled back Tuesday, with major indices snapping their recent rally as doubts over the durability of the artificial intelligence trade weighed on sentiment. Heavyweights Nvidia and Oracle, key drivers of this year’s AI boom, dropped over 3%, while Fed Chair Jerome Powell added to valuation concerns at a speech. The Vix index jumped to 17%, the highest level in three weeks, before reversing slightly. Traders also kept an eye on rising risks of a government shutdown ahead of the September 30 funding deadline. In markets, currencies and gold were little changed, core bond yields fell a few basis points, and oil jumped on stalled Kurdish exports and Trump’s call for Europe to halt Russian energy purchases.
In geopolitics today, Trump said Ukraine can retake all territory lost to Russia with NATO and EU support, while urging Europe to stop buying Russian energy that funds the war. In his U.N. address, Trump delivered a sharply combative speech, calling on nations to close borders, expel foreigners, and denouncing immigration and green energy policies as threats to Western nations’ heritage. He also dismissed climate change as a “con job” and challenged global institutions, urging countries to prioritise national sovereignty over global cooperation.
In Europe, Copenhagen and Oslo airports were temporarily closed following drone sightings. Denmark’s Prime Minister said she “cannot rule out” Russian involvement, citing similar drone activity over Poland, Romania, and violations of Estonian airspace. Trump added that Russian fighter jets crossing into NATO airspace should be shot down.
Central Banks: In Fed officials’ speeches today, Jerome Powell noted that stock prices appear “fairly highly valued” and described the current policy stance as “modestly restrictive,” signalling that rate cuts could occur only if labour market weakness persists. St. Louis Fed Bullard and Atlanta Fed Bostic both cautioned against further easing, emphasising a careful approach to monetary policy.
Earnings: Micron Tech (mcap $186bn) reported after the close, slightly beat on revenues ($11.3bn), net profits ($3.2bn) and gross margins came in above expectations, and it provided an optimistic outlook. Shares gained over 3% in extended trading.
Economics: It was a light day for data updates, with PMI surveys for September as the main release. Overall, the U.S. and UK are experiencing a slowdown in business activity, while the Eurozone shows modest improvement as Germany stands out with a strong rebound, driven by services. The US Composite reading was 53.6, the second consecutive month of decline, indicating a slowdown but still in expansive territory. The UK Composite reading missed estimates, fell sharply to 51 points, driven by a weak services sector.
Corporate Deals: In an otherwise quiet day for M&A and IPO activity, Sempra (mcap $56bn) is selling a 45% stake in its energy infrastructure unit, Sempra Infrastructure Partners, to KKR affiliates for $10bn in cash. The deal values the unit at an equity value of $22bn and an enterprise value of $32bn, giving KKR a 65% ownership stake upon closing.
Day ahead: US new home sales and building permits; Germany Ifo surveys; Cintas Corp (mcap $80bn) reports before the open.
Copyright © 2025 Succinct.
All rights reserved. This publication contains proprietary content and is intended solely for the recipient’s personal use. Disclaimer: Our service is for informational purposes only and does not constitute personal financial advice.