Fixed Income Market Overview
U.S. Treasury yields remained largely unchanged on Monday, with the 10-year yield slightly down to 3.877% and the 2-year yield nearly flat at 4.062%. Investors are focused on the upcoming Federal Reserve meeting minutes and the Jackson Hole symposium later this week. Recent strong U.S. retail sales and jobless claims data eased economic concerns, boosting markets. Despite this, markets still anticipate a Fed rate cut in September, though the odds of a 50 basis point cut have decreased to 26.5%. Fed Chair Jerome Powell’s upcoming speech at Jackson Hole is expected to provide key market signals.
LVMH CEO Bernard Arnault’s family office goes shopping for AI startups.
Mastercard is cutting 3% of its workforce.
GM reveals GMC Yukon ‘AT4 Ultimate’ to expand reach, profits of high-end SUVs.
Oil prices fall for fourth session in five as U.S. pushes for Gaza cease-fire.
European markets close higher, extending positive momentum.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 40,896.53 | 236.77 | 0.58%↑ |
| NASDAQ | 19,766.49 | 257.97 | 1.32%↑ |
| S&P 500 | 5,608.25 | 54 | 0.97%↑ |
| FTSE 100 | 8,356.94 | 45.530 | 0.55%↑ |
| SX5E | 4,871.41 | 30.89 | 0.64%↑ |
| NIKKEI | 37,388.62 | -674.04 | -1.77%↓ |
| HSI | 17,569.57 | 139.41 | 0.80%↑ |
| VIX | 14.65 | -0.15 | -1.01%↓ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 3.87% | -0.01 |
| US 30-YR | 4.12% | -0.02 |
| US 5-YR | 3.75% | -0.00 |
| JPN 10-YR | 0.89% | 0.01 |
| UK 10-YR | 3.74% | 0.00 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 74.37 | -2.28 | -2.98%↓ |
| NAT GAS | 2.23 | 0.11 | 5.28%↑ |
| GOLD | 2,504.28 | -3.73 | 0.15%↓ |
| SILVER | 29.45 | 0.47 | 1.62%↑ |
| COPPER | 4.18 | 0.04 | 0.89%↑ |
Equity Market Overview
Advanced Micro Devices
Advanced Micro Devices (AMD) plans to acquire server maker ZT Systems for $4.9 billion to bolster its AI chip and hardware portfolio, aiming to compete with Nvidia. The acquisition will be 75% cash and 25% stock, utilizing AMD’s $5.34 billion in available funds. This move will enhance AMD’s ability to scale AI GPUs for major clients like Microsoft. AMD plans to divest the server manufacturing business post-acquisition, expected to close in the first half of 2025. ZT Systems, generating $10 billion annually, will contribute to AMD’s adjusted financial performance by he end of 2025.
Palo Alto
Palo Alto Networks shares rose 3.7% after hours on Monday following strong quarterly results and an impressive outlook. For fiscal 2025, the company expects earnings per share (EPS) between $6.18 and $6.31, up 9% to 11% from 2024, and revenue between $9.1 billion and $9.15 billion, aligning with estimates. In Q1 2025, revenue is expected to grow 12% to 13% to $2.1 billion to $2.13 billion, with EPS projected at $1.47 to $1.49, surpassing estimates. The company reported Q4 2024 EPS of $1.51 on $2.2 billion in revenue, exceeding forecasts, driven by strong execution and innovation in its Next-Generation Security business.
