00:00:00
Speaker 1: US bond yields hit their highest level since 2002. The Fed's minutes kept another rate hike on the table. AI stocks swung sharply as investors weighed funding and revenue concerns. And consumers in Australia and the US are feeling the pinch. Here's what moved markets last week and what to watch in the days ahead.
00:00:24
Speaker 2: I'm Jackie Newman, Head of Capital Markets at Sharesies. Let's get into it. In the US, the S & P 500 rose 1.2% for the week, while the Nasdaq gained 0.6%. Both hit record highs early last week.
00:00:36
Speaker 1: Locally, the ASX 200 edged up 0.4% and New Zealand's NZX 50 gained 0.5%.
00:00:40
Speaker 2: Bonds stayed in focus.
00:00:55
Speaker 1: With US 10-year and 30-year yields both hitting their highest levels since 2002. Investors are still weighing heavy government borrowing, fiscal worries and a growing pile of AI-related debt. Minutes from the Fed's September meeting showed all 19 officials backed last month's hike. Most saw another hike as appropriate before year-end, saying inflation hadn't made enough progress. Fed Governor Christopher Waller agreed more hikes are likely needed, but said they don't have to come at back-to-back meetings.
00:01:33
Speaker 2: Softer recent inflation data has.
00:01:36
Speaker 1: Cooled bets of an October move, with markets now seeing just under a 20 per cent chance. Oil prices were choppy again as tensions in the Middle East escalated. Prices eased later in the week after President Trump ruled out a US strike on Iran before next month's midterms. Brent crude ended the week around $ 104 a.
00:02:01
Speaker 2: Barrel.
00:02:02
Speaker 1: In tech, it was a volatile week for AI stocks. Marvel lifted its long-term revenue outlook. and AMD said it will substantially lift chip output next year. Later in the week, tech came under pressure after the Financial Times reported OpenAI's annualized revenue was close.
00:02:23
Speaker 2: To $ 50 billion.
00:02:25
Speaker 1: That's well below the $ 70 billion figure widely reported earlier. Those concerns eased on Friday after reports that OpenAI expects to reach $ 70 billion annualised revenue by the end of this year.
00:02:40
Speaker 2: SpaceX had a busy week.
00:02:42
Speaker 1: It's reportedly looking to raise $ 40 billion in debt to buy Nvidia chips in a deal led by Apollo. The transaction adds to questions among some investors about how the AI build-out is being funded. In other news, on Thursday, SpaceX agreed to buy a large block of nationwide low-band spectrum from a private investment firm. The deal is still going through regulatory approvals. However, SpaceX says it's a key step towards turning Starlink into a major US mobile carrier. SpaceX shares ended the week up 2.3%. But T-Mobile, AT & T and Verizon fell sharply on fears of a new competitor. Locally, AI infrastructure company Firmus withdrew its planned ASX listing. It reportedly failed to attract enough investor demand amid concerns including its valuations. Reports suggest it will now seek private funding and is considering a US listing instead. In economic news, consumer confidence took a hit in both the US and Australia. The University of Michigan's Consumer Sentiment Survey fell in October, with Americans' view of current conditions the weakest since records began in 1951. Closer to home, Westpac's Consumer Sentiment Index fell almost 5% in October, as higher fuel prices and the RBA's rate hike weighed on households.
00:04:20
Speaker 2: Looking ahead, the.
00:04:21
Speaker 1: US reporting season gets into full swing this week, and expectations are high. According to FactSet, analysts expect S & P 500 earnings to grow almost 30% for the September quarter. The big banks kick things off on Tuesday US time with JP Morgan, Goldman Sachs, Wells Fargo and Citi reporting. Bank of America and Morgan Stanley follow on Wednesday. Their results will show how consumers are handling higher rates and how busy deal-making has been. In Australia, AGM season is getting underway. Telstra meets shareholders on Tuesday, followed by Commonwealth Bank and Origin Energy on Wednesday. Treasury Wine Estates and South32 hold theirs on Thursday. Investors will be listening for updates on trading conditions and the earnings outlook. while shareholders also get their say on board appointments and executive pay. On the economic calendar, the RBA releases the minutes of its September meeting on Tuesday, alongside NAB Business Confidence. On Wednesday, China and the US release September inflation. Australia's September labour force data follows on Thursday, And Eurozone inflation for September rounds out the week on Friday. Stay across it and happy investing.
Speaker 1: US bond yields hit their highest level since 2002. The Fed's minutes kept another rate hike on the table. AI stocks swung sharply as investors weighed funding and revenue concerns. And consumers in Australia and the US are feeling the pinch. Here's what moved markets last week and what to watch in the days ahead.
00:00:24
Speaker 2: I'm Jackie Newman, Head of Capital Markets at Sharesies. Let's get into it. In the US, the S & P 500 rose 1.2% for the week, while the Nasdaq gained 0.6%. Both hit record highs early last week.
00:00:36
Speaker 1: Locally, the ASX 200 edged up 0.4% and New Zealand's NZX 50 gained 0.5%.
00:00:40
Speaker 2: Bonds stayed in focus.
00:00:55
Speaker 1: With US 10-year and 30-year yields both hitting their highest levels since 2002. Investors are still weighing heavy government borrowing, fiscal worries and a growing pile of AI-related debt. Minutes from the Fed's September meeting showed all 19 officials backed last month's hike. Most saw another hike as appropriate before year-end, saying inflation hadn't made enough progress. Fed Governor Christopher Waller agreed more hikes are likely needed, but said they don't have to come at back-to-back meetings.
00:01:33
Speaker 2: Softer recent inflation data has.
00:01:36
Speaker 1: Cooled bets of an October move, with markets now seeing just under a 20 per cent chance. Oil prices were choppy again as tensions in the Middle East escalated. Prices eased later in the week after President Trump ruled out a US strike on Iran before next month's midterms. Brent crude ended the week around $ 104 a.
00:02:01
Speaker 2: Barrel.
00:02:02
Speaker 1: In tech, it was a volatile week for AI stocks. Marvel lifted its long-term revenue outlook. and AMD said it will substantially lift chip output next year. Later in the week, tech came under pressure after the Financial Times reported OpenAI's annualized revenue was close.
00:02:23
Speaker 2: To $ 50 billion.
00:02:25
Speaker 1: That's well below the $ 70 billion figure widely reported earlier. Those concerns eased on Friday after reports that OpenAI expects to reach $ 70 billion annualised revenue by the end of this year.
00:02:40
Speaker 2: SpaceX had a busy week.
00:02:42
Speaker 1: It's reportedly looking to raise $ 40 billion in debt to buy Nvidia chips in a deal led by Apollo. The transaction adds to questions among some investors about how the AI build-out is being funded. In other news, on Thursday, SpaceX agreed to buy a large block of nationwide low-band spectrum from a private investment firm. The deal is still going through regulatory approvals. However, SpaceX says it's a key step towards turning Starlink into a major US mobile carrier. SpaceX shares ended the week up 2.3%. But T-Mobile, AT & T and Verizon fell sharply on fears of a new competitor. Locally, AI infrastructure company Firmus withdrew its planned ASX listing. It reportedly failed to attract enough investor demand amid concerns including its valuations. Reports suggest it will now seek private funding and is considering a US listing instead. In economic news, consumer confidence took a hit in both the US and Australia. The University of Michigan's Consumer Sentiment Survey fell in October, with Americans' view of current conditions the weakest since records began in 1951. Closer to home, Westpac's Consumer Sentiment Index fell almost 5% in October, as higher fuel prices and the RBA's rate hike weighed on households.
00:04:20
Speaker 2: Looking ahead, the.
00:04:21
Speaker 1: US reporting season gets into full swing this week, and expectations are high. According to FactSet, analysts expect S & P 500 earnings to grow almost 30% for the September quarter. The big banks kick things off on Tuesday US time with JP Morgan, Goldman Sachs, Wells Fargo and Citi reporting. Bank of America and Morgan Stanley follow on Wednesday. Their results will show how consumers are handling higher rates and how busy deal-making has been. In Australia, AGM season is getting underway. Telstra meets shareholders on Tuesday, followed by Commonwealth Bank and Origin Energy on Wednesday. Treasury Wine Estates and South32 hold theirs on Thursday. Investors will be listening for updates on trading conditions and the earnings outlook. while shareholders also get their say on board appointments and executive pay. On the economic calendar, the RBA releases the minutes of its September meeting on Tuesday, alongside NAB Business Confidence. On Wednesday, China and the US release September inflation. Australia's September labour force data follows on Thursday, And Eurozone inflation for September rounds out the week on Friday. Stay across it and happy investing.
