Core Viewpoint - Hitachi Ltd. shares surged by up to 9.9% following the announcement of a strategic partnership with OpenAI, reflecting a trend of increasing collaborations between Japanese tech firms and US AI companies [1][2]. Group 1: Partnership Details - The partnership will focus on Hitachi's energy and power grid operations, cooling equipment, storage, and its digital solutions hub Lumada, as stated by a Hitachi representative [2]. - Hitachi and OpenAI signed a memorandum of understanding on October 2, which was communicated via social media [2]. Group 2: Market Impact - The collaboration with US firms is contributing to a rally in Japan's tech stocks, which has propelled the nation's equity benchmarks to all-time highs [3]. - Fujitsu Ltd. also experienced a share increase of up to 5.7% after expanding its partnership with Nvidia Corp., indicating a broader trend in the tech sector [3]. Group 3: Investor Sentiment - Investors are increasingly recognizing specific projects emerging from the expansion of data centers, moving beyond mere expectations [4]. - SoftBank Group Corp. has seen its stock more than double since announcing its involvement in the Stargate Project with OpenAI and other US tech firms, highlighting the growing investor interest in AI-related initiatives [4]. Group 4: Financial Implications - The partnership with OpenAI could enhance orders for Hitachi's energy segment, which was a significant contributor to the company's earnings in the last fiscal year [5]. - Analysts noted that the potential for data storage equipment supply could also benefit Hitachi's struggling storage unit [5]. Group 5: OpenAI Valuation - OpenAI's valuation reached $500 billion, making it the world's largest startup, following a deal that allowed employees to sell shares [6].

Economic Indicators - The Dallas Fed manufacturing activity survey for September unexpectedly fell by -6.9 to -8.7, weaker than expectations of an increase to -1.0 [1] - US pending home sales for August rose by +4.0% month-over-month, significantly stronger than expectations of +0.4% and marking the largest increase in five months [2] - The S&P companies are expected to post +6.9% earnings growth in Q3, up from +6.7% as of the end of May, with over 22% of companies providing guidance expected to beat analysts' expectations [8] Stock Market Performance - Stock indexes experienced a rally, with the S&P 500, Dow Jones Industrial Average, and Nasdaq 100 reaching record highs last week, driven by strong earnings growth and Fed easing measures [4] - On Monday, the S&P 500 Index closed up +0.26%, the Dow Jones closed up +0.15%, and the Nasdaq 100 closed up +0.44% [6] - Chipmakers led technology stocks higher, with GlobalFoundries and Micron Technology closing up more than +3% [14] Interest Rates and Bond Market - The 10-year T-note yield fell by -3 bp to 4.14%, influenced by expectations of weak labor market news prompting the Fed to continue cutting interest rates [5][11] - The 10-year breakeven inflation rate fell to a 1.5-week low of 2.357%, supporting Fed policy and T-note prices [11] Corporate Developments - Merus NV closed up more than +35% after Genmab announced a deal to acquire the company for $8 billion or $97 per share [16] - Electronic Arts closed up more than +4% after a consortium acquired the company for $55 billion or $210 per share [18] - Western Digital closed up more than +9% after an upgrade from Rosenblatt Securities, raising its target on the stock to $125 from $90 [16] Sector Performance - Energy producers retreated after WTI crude oil prices fell by more than -3%, with companies like Diamondback Energy and Devon Energy closing down more than -3% [15] - Rising corporate earnings expectations provide a bullish backdrop for stocks, with significant positive guidance from S&P 500 companies [8]

U.S. equity markets presented a mixed picture on Monday, September 29, 2025, as investors grappled with a looming government shutdown, a robust rally in technology stocks, and a series of key corporate announcements. While the tech-heavy Nasdaq Composite led gains, the Dow Jones Industrial Average edged lower, reflecting cautious sentiment across broader sectors. The potential for a federal government shutdown, with a deadline set for 12:01 a.m. ET Wednesday, October 1, remained a dominant concern, threaten ...

Group 1: Corporate Earnings and Market Sentiment - Rising corporate earnings expectations are a bullish backdrop for stocks, with over 22% of S&P 500 companies providing guidance for Q3 earnings that are expected to beat analysts' expectations, the highest in a year [1] - S&P companies are expected to post +6.9% earnings growth in Q3, an increase from +6.7% as of the end of May [1] Group 2: Economic Indicators and Federal Reserve Policy - Cleveland Fed President Beth Hammack indicated that inflation is not expected to return to the Fed's 2% objective until late 2027 or early 2028, emphasizing the need for a restrictive policy stance [3] - The market is pricing in an 89% chance of a -25 basis point rate cut at the next FOMC meeting on October 28-29 [6] Group 3: Stock Market Performance - Stock indexes are mixed, with the broader market climbing and bond yields falling due to weak US labor market news reinforcing expectations for additional Fed interest rate cuts [5] - The S&P 500 Index is up +0.39%, while the Dow Jones Industrials Index is down -0.08%, and the Nasdaq 100 Index is up +0.78% [6] Group 4: Sector Performance - Chipmakers are leading technology stocks higher, with notable gains from GlobalFoundries (+4%), Micron Technology (+3%), and Nvidia (+2%) [12] - Energy producers are experiencing declines, with WTI crude oil prices down more than -2%, affecting companies like APA Corp (-3%) and Chevron (-2%) [13] Group 5: Notable Company Movements - Merus NV is up more than +38% following an acquisition announcement by Genmab for $8 billion or $97 per share [14] - Western Digital is up more than +9% after a target price increase by Rosenblatt Securities [14] - Electronic Arts is up more than +5% after a consortium acquired the company for $55 billion or $210 per share [14]

The CNN Money Fear and Greed index showed some improvement in the overall market sentiment, while the index remained in the “Neutral” zone on Friday.U.S. stocks settled higher on Friday, with the Dow Jones index gaining around 300 points during the session following the release of inflation data.Inflation figures released Friday showed no surprises but indicated the Fed's need for caution on its rate-cut cycle. The Personal Consumption Expenditures (PCE) price index rose 2.7% year-over-year in August, up fr ...

The CNN Money Fear and Greed index showed some improvement in the overall market sentiment, while the index remained in the “Neutral” zone on Friday.U.S. stocks settled higher on Friday, with the Dow Jones index gaining around 300 points during the session following the release of inflation data.Inflation figures released Friday showed no surprises but indicated the Fed's need for caution on its rate-cut cycle. The Personal Consumption Expenditures (PCE) price index rose 2.7% year-over-year in August, up fr ...

Market Overview - U.S. equities are rebounding strongly as investors react positively to the August Personal Consumption Expenditures (PCE) inflation report, which met expectations and alleviated concerns about the Federal Reserve's monetary policy [1][3] - Major U.S. stock indexes are in positive territory, with the Dow Jones Industrial Average up 0.8% to 46,316 points, the S&P 500 climbing 0.5% to 6,641, and the Nasdaq Composite increasing 0.3% to 22,455 [2] Economic Indicators - The August PCE inflation report showed consumer prices rose 2.7% year-over-year, slightly up from July's 2.6%, while core PCE inflation remained at 2.9% [3] - The University of Michigan's Consumer Sentiment survey for August was at 55.1, slightly below expectations, but consumer spending rose 0.6% in August, exceeding forecasts [4] Upcoming Events - The upcoming U.S. employment report is anticipated, with nonfarm payrolls expected to rise by 39,000 in September and the unemployment rate forecast to remain at 4.3% [5] - Other important economic indicators include worldwide manufacturing PMI surveys and Eurozone inflation numbers [6] Corporate Earnings - Several S&P 500 companies are set to report quarterly results, including Carnival, Lamb Weston Holdings, and Nike [7] - BlackBerry reported earnings of $0.04 per share, leading to an 8.8% stock increase, while CarMax saw a significant decline of 20.1% after missing earnings estimates [13] Sector Performance - Intel shares surged 6% today, continuing a strong performance with over 20% gains since Monday, partly due to acquisition discussions with Apple [8] - Boeing's stock rose 4.4% after the FAA allowed the company to sign off on its own planes again [10] - The pharmaceutical sector is performing well, with stocks like Eli Lilly and Pfizer nudging higher following a new tariff plan for drugmakers [14] Market Themes - The tech sector is experiencing significant growth driven by artificial intelligence, while consumer-facing sectors are struggling with high interest rates, indicating a "two-speed economy" [15] - In the cryptocurrency market, Bitcoin fell below $110,000, marking a decline of over 5% for the week [16]

Economic Outlook - The U.S. economy is projected to grow by 1.8% in 2023, an increase from the previous forecast of 1.6%, and is expected to grow by 1.5% in 2024 [1] - The global economy is expected to grow by 3.2% in 2023, up from 2.9% previously forecasted, with a stable growth forecast of 2.9% for 2024 [1] Federal Reserve Insights - U.S. rate futures indicate an 89.8% probability of a 25 basis point rate cut at the next FOMC meeting [2] - Fed officials express differing views on interest rate cuts, with some advocating for aggressive cuts to protect the labor market while others caution against further reductions due to inflation concerns [3] Stock Market Performance - Wall Street's main indexes closed higher, with the S&P 500, Dow, and Nasdaq 100 reaching new record highs [4] - Nvidia announced plans to invest up to $100 billion in OpenAI, leading to a more than 3% increase in its stock [4] - Teradyne's stock surged over 12% after a price target upgrade, while Applied Materials rose over 5% following an upgrade from Morgan Stanley [4] Economic Data and Corporate Earnings - Investors are focused on upcoming speeches from Fed officials and preliminary U.S. purchasing managers' surveys, with expectations for the September S&P Global Manufacturing PMI at 52.2 and Services PMI at 54.0 [6] - The U.S. Richmond Fed Manufacturing Index is anticipated to improve to -5 in September from -7 [7] - Micron Technology and AutoZone are set to release quarterly results today [7] European Market Developments - The Euro Stoxx 50 Index rose by 0.64% as positive PMI data supported market sentiment [8] - Eurozone's Composite PMI for September was reported at 51.2, exceeding expectations, while Manufacturing PMI was weaker at 49.5 [10] China Market Updates - China's Shanghai Composite Index closed slightly lower, with bank stocks providing some support against profit-taking in the tech sector [12] - The People's Bank of China plans to maintain liquidity and support economic recovery, while a new financing instrument is expected to direct 500 billion yuan ($70.3 billion) to stimulate investment [12]

Nvidia announced it will acquire $5 billion worth of chipmaking rival Intel’s shares and the two companies will collaborate to develop custom data center and personal computer products. https://t.co/EPL8YMeJxu (Photo: I-Hwa Cheng/AFP via Getty Images) https://t.co/u0I4Oqjplc ...

Market Overview - Wall Street reached new record highs driven by the Federal Reserve's quarter-point interest rate cut and expectations of further reductions in upcoming meetings [2][8] - The S&P 500, Nasdaq, and Russell 2000 indices all achieved unprecedented levels, with technology stocks leading the gains [2][8] - Nvidia's $5 billion investment in Intel resulted in a significant 23.1% to 24.6% increase in Intel's shares, marking its largest daily gain since 1987 [2][8] Corporate Performance - FedEx reported a strong first quarter for fiscal year 2025, with adjusted earnings per share of $3.83, surpassing the estimated $3.59, and revenue of $22.2 billion, exceeding predictions of $21.67 billion [3][8] - The company's adjusted operating income reached $1.30 billion, higher than the expected $1.21 billion, indicating a robust start to the fiscal year [3] Capital Flows - U.S. Treasury International Capital (TIC) data for July showed a significant decline in net long-term capital inflows, totaling $49.2 billion, down from $150.8 billion in the same period last year [4][8] - Despite the monthly dip, total foreign holdings of U.S. Treasuries reached a record high of $8.339 trillion in July, up from $8.211 trillion in June [4][8] Geopolitical Developments - Former President Trump announced efforts to regain control of Afghanistan's Bagram Air Base, emphasizing its strategic importance due to its proximity to China's nuclear facilities [5][8] Technology Investments - Microsoft announced a $4 billion expansion of its data center investments in Wisconsin, bringing its total investment in the state to over $7 billion [6][8]