By Mike Dolan
-What matters in U.S. and global markets today
By Mike Dolan, Editor-At-Large, Finance and Markets
Markets have already effectively priced in the U.S. government’s reopening on Monday, with today’s House vote to restore funding through January seen as a formality. Attention has now turned more to tech sector wobbles and the deluge of delayed economic data now due.
Veterans Day stock market trading was relatively subdued, even though the S&P500 eked out a modest gain and the Dow Jones Industrial Average clocked a new record high.
Unusually, the tech sector underperformed and the Nasdaq ended in the red – unnerved by CoreWeave’s 16% slide on data center flubs and as SoftBank’s sale of its stake in Nvidia knocked back the world’s most valuable company by more than 2%.
SoftBank’s shares slid as much as 10% in Tokyo on Wednesday as Nvidia highlighted the scale of the funding demands it faces to bankroll an “all-in” bet on ChatGPT-creator OpenAI.
And Japan was volatile for other reasons – with the yen sliding to a nine-month low of 154.9 per dollar after new Prime Minister Sanae Takaichi once again urged the Bank of Japan not to be overzealous in raising interest rates.
The yen move was arrested somewhat by comments from Finance Minister Satsuki Katayama, who warned about the negative effects of “one-sided and rapid movements” in the currency. Currency traders doubt intervention alarm bells will ring before the yen hits 160 – but that level is fast approaching.
Asian and European shares were higher and Wall Street stock futures in positive territory ahead of Wednesday’s bell, however.
The prospect of a reopening of the federal government came against another set of mixed signals on the U.S. economy, with weekly updates of ADP’s preliminary payroll figures showing private sector employers shed an average of 11,250 jobs a week through October.
That cosseted persistent speculation the Fed will cut interest rates again next month, with futures clinging to a two-thirds chance of another move in December despite clear disquiet in some parts of the central bank about further easing.
A slew of Fed officials are on Wednesday’s speaking diary, including resident board doves Christopher Waller and Stephen Miran. Treasury Secretary Scott Bessent is also due to address a joint Fed-Treasury conference later in the day.
After Tuesday’s holiday, Treasury markets reopen with yields under wraps ahead of today’s 10-year note auction.
President Donald Trump is expected to host a private dinner at the White House with several top business executives, including the chief executives of Nasdaq and JPMorgan Chase.
Aside from its move against the yen, the dollar was flatter against the euro and other currencies on Wednesday. The Swiss franc continued to push higher on reports that U.S. tariffs on Swiss imports will be slashed to 15% from 39%.
Britain’s pound and government bond prices weakened in tandem, meanwhile, on overnight reports that Prime Minister Keir Starmer may face a leadership challenge from within his own Labour Party. Health minister Wes Streeting denied he was plotting to bring down Starmer after unnamed allies of the prime minister claimed a leadership bid could come after this month’s critical government budget.
In today’s column, I argue that Europe’s equity outperformance this year has been flattered by currency shifts, so the long-term test of its companies and economy rests on how it fosters its emerging tech ecosystem.
Today’s Market Minute
Chart of the day
SoftBank’s shares slid as much as 10% on Wednesday after a $5.8 billion sale of its stake in Nvidia highlighted the growing funding demands it faces to bankroll an “all-in” bet on ChatGPT creator OpenAI and other investments. The conglomerate needs to fund a $22.5 billion follow-on investment in OpenAI, is acquiring chipmaker Ampere in a $6.5 billion deal and has agreed to buy the robotics business of Swiss group ABB for $5 billion. A total spending commitment of $41 billion compares with the group’s $28 billion cash position as of September.
Today’s events to watch
* Canada September building permits (8:30 AM EDT)
* Republican-controlled U.S. House of Representatives to vote Wednesday afternoon on restoring funding to government agencies and ending a shutdown now in its 42nd day
* Federal Reserve Board Governors Christopher Waller, Stephen Miran and Michael Barr all speak, New York Fed President John Williams, Philadelphia Fed President Anna Paulson, Boston Fed chief Susan Collins and Atlanta Fed boss Raphael Bostic all speak; European Central Bank Vice-President Luis de Guindos and ECB board member Isabel Schnabel speak; Bank of England chief economist Huw Pill and BoE’s Director for Financial Stability, Strategy and Risk Lee Foulger speak
* Treasury Secretary Scott Bessent speaks at 2025 U.S. Treasury Market Conference (10:45 AM EDT)
* U.S. Treasury sells $42 billion of 10-year notes
* U.S. corporate earnings: Cisco, TransDigm
* U.S. Securities and Exchange Commission chair Paul Atkins speaks about SEC’s “Project Crypto”
* Euro zone finance ministers meet in Brussels, with European Central Bank President Christine Lagarde, ECB board member Piero Cipollone and ECB chief supervisor Claudia Buch all attending.
Want to receive the Morning Bid in your inbox every weekday morning? Sign up for the newsletter here. You can find ROI on the Reuters website, and you can follow us on LinkedIn and X.
Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
(By Mike Dolan; Editing by Joe Bavier)
Comments