Markets:
The market mood was poor to start the day after oil prices spiked in Europe following reports and comments from Trump about attacking Iran once again. Later, Trump put out a post saying he wouldn't attack Iran before the midterms and that led to a bounce in crude. There was the usual skepticism but it was also a reminder of how high oil prices and inflation are an all-encompassing headwind for Republicans and that Trump will want to resolve the war at some point.
Equally important was a report that OpenAI's run rate of revenue is $50 billion, not the $70 billion the Street was modelling. That created some headwinds for chipmakers and electricity producers. Notably, it also led to some USD selling in a reminder that AI flows have been a big part of the USD outperformance this year.
Economic data was light but initial jobless claims remained near rock-bottom levels. Fed commentary continued to emphasize a desire to bring down inflation, underscoring the likelihood of a hike this year and more beyond.
A final thought, we saw a turnaround in Treasury yields today and a finish at the lows of the day. Could it be The Economist marking the top yet again?
This article was written by Adam Button at investinglive.com.
Source: Investing Live - News
