On Thursday, the three major indexes closed mixed, with the Nasdaq dropping more than 1%. Reports indicated that OpenAI's annualized revenue was $20 billion lower than previously reported, pressuring technology stocks lower. St. Louis Fed President Musalem stated that the Federal Reserve needs to raise interest rates again to bring inflation back to its 2% target.

US Stocks

At the close, the Dow Jones Industrial Average rose 52.61 points, or 0.10%, to 51,232.48; the S&P 500 fell 36.35 points, or 0.47%, to 7,765.42; and the Nasdaq Composite fell 345.35 points, or 1.25%, to 27,193.34. NVIDIA (NVDA.US) fell nearly 3%, while SpaceX (SPCX.US), Micron Technology (MU.US), and SK Hynix (SKHY.US) dropped more than 4%. Oracle (ORCL.US) and Intel (INTC.US) declined over 5%. The Nasdaq Golden Dragon China Index fell 0.62%.

European Stocks

Germany's DAX 30 fell 303.00 points, or 1.21%, to 24,801.36; the UK's FTSE 100 dropped 23.16 points, or 0.22%, to 10,435.34; France's CAC 40 declined 39.52 points, or 0.51%, to 7,729.69; the Euro Stoxx 50 fell 55.94 points, or 0.91%, to 6,124.35; Spain's IBEX 35 dropped 194.89 points, or 1.02%, to 18,923.11; and Italy's FTSE MIB declined 693.75 points, or 1.39%, to 49,278.50.

Asia-Pacific Stocks

Japan's Nikkei 225 fell 1.42%, South Korea's KOSPI dropped 2.62%, and Indonesia's Composite Index declined 1.88%.

Forex

The US dollar index, which measures the greenback against six major currencies, fell 0.1% on the day, closing at 102.138 in late New York trading. As of late New York trading, 1 euro exchanged for 1.1209 dollars, up from 1.1199 the previous trading day; 1 pound exchanged for 1.3225 dollars, up from 1.3219; 1 dollar exchanged for 157.86 yen, down from 157.96; 1 dollar exchanged for 0.8316 Swiss francs, down from 0.8330; 1 dollar exchanged for 1.4224 Canadian dollars, down from 1.4256; and 1 dollar exchanged for 9.9757 Swedish kronor, down from 9.9992.

Cryptocurrencies

Bitcoin briefly fell below the $81,000 mark, trading at $80,311.94 as of press time; Ethereum dropped 3.5% to $2,479.

Precious Metals

Spot gold was quoted at $4,133.67 per ounce; spot silver at $59.187 per ounce.

Crude Oil

November-delivery light crude futures on the New York Mercantile Exchange rose $3.21 to settle at $91.49 per barrel, a gain of 3.64%; December-delivery London Brent crude futures rose $4.08 to settle at $104.28 per barrel, a gain of 4.07%.

Macro News

Fed's Musalem: Further rate hikes may be needed within the next 6 to 9 months. St. Louis Fed President Musalem said the Federal Reserve needs to raise interest rates again to bring inflation back to its 2% target. He stated that to achieve the inflation goal within a "timely" period, monetary policy needs to be further tightened. Musalem said that if "timely" means about 18 months, then rates may need to be raised further at an appropriate time within the next 6 to 9 months. He noted that inflation remains the main problem facing the US economy, but with strong economic growth and a stable job market, the Fed may be able to bring inflation down without significantly harming employment. When asked whether rates should be raised at the October 27-28 meeting, Musalem said he remains open-minded and has not pre-judged the outcome, but the inflation situation requires policymakers to continue considering further tightening. Musalem said that despite the notable rise in US Treasury yields, financial conditions remain accommodative and supportive of economic growth. He stated that rising yields do not mean investors have lost confidence in the Fed, but rather reflect market expectations of higher real interest rates and increased competition for capital in a strong economic environment.

US estimated FY2026 federal budget deficit totals $2 trillion. On October 8 local time, according to Congressional Budget Office estimates, the US federal government's total budget deficit for fiscal year 2026 is $2 trillion, $218 billion higher than the FY2025 deficit. Estimates show that during FY2026, revenues will increase by $169 billion (a 3% increase), while spending will rise by approximately $386 billion (a 6% increase). Spending growth mainly comes from net debt interest, major benefit programs, defense, and education; revenue growth is primarily driven by increases in individual income taxes and payroll taxes.

OpenAI's annualized revenue $20 billion lower than previously reported. According to reports, OpenAI recently disclosed to investors that its annualized revenue was close to $50 billion as of the end of September, significantly lower than the $70 billion reported by the newspaper and other media outlets late last month. People familiar with the matter said the discrepancy stems from investors attempting to directly compare OpenAI's annualized revenue with that of competitor Anthropic, but the two companies use different statistical methods: Anthropic includes sales revenue generated through cloud partners such as AWS and Google Cloud in its revenue, while OpenAI does not use this approach. Previously, investors adjusted OpenAI's revenue methodology to arrive at a figure of $40 billion in annualized revenue for August, and then combined that with information disclosed to investors that the company's revenue growth exceeded 70% to calculate $70 billion. OpenAI declined to comment.

US 30-year mortgage rate rises to 7.4%, a near three-year high. According to Freddie Mac data, the average rate on a 30-year fixed mortgage in the US rose from 7.28% last week to 7.4%, marking the seventh consecutive weekly increase, the first such long streak in three years, with the rate level hitting a new high since November 2023, compared to 6.3% a year earlier. High home prices combined with rising borrowing costs have further exacerbated US housing affordability pressures. Assuming a 20% down payment, buying a $500,000 home at current rates would cost about $172 more per month in principal and interest than four weeks ago, while buying a $1 million home would cost about $345 more. As fixed rates continue to climb, more borrowers are turning to adjustable-rate loans with lower initial rates, with adjustable-rate mortgages accounting for 12.2% of loans in early October, a four-year high.

ING: ECB September rate hike had broad support, but another hike in October is unlikely. ING economist Carsten Brzeski said in a report that the minutes of the ECB's September monetary policy meeting showed that the rate hike decision that month received broad support. However, Brzeski noted that the internal discussion was actually more balanced than ECB President Lagarde suggested in her post-meeting remarks, implying that another rate hike in October is unlikely. Some officials believed the energy shock might last less long than previously assumed, while others questioned the claim that the European economy had shown resilience to the energy shock. Meanwhile, continued rises in bond yields further reinforced the view among some officials that no further rate hikes were needed. Brzeski added: "As the bond market is doing the ECB's work of tightening financial conditions, some officials' willingness to continue raising rates may no longer be as strong as it was at the September meeting."

Individual Stock News

SpaceX acquires low-band spectrum, targeting US wireless carriers. SpaceX (SPCX.US) announced on Thursday that it has reached an agreement to acquire a portfolio of low-band spectrum licenses covering the entire United States, which will allow it to compete directly with traditional wireless communications giants across the US. While Starlink Mobile's existing global 2 GHz mid-band spectrum will provide high-bandwidth capacity, the new spectrum will enable its signals to penetrate obstacles. The move accelerates Musk's ambition to bypass traditional wireless infrastructure and provide cellular connectivity directly to smartphones from Earth orbit. The transaction involves acquiring 100% of the nationwide 800 MHz spectrum portfolio held by private equity firm Grain Management and still requires regulatory approval from the Federal Communications Commission (FCC). In addition, the FCC this week approved Starlink Mobile's second-generation satellite constellation application, authorizing SpaceX to launch 15,000 satellites globally optimized for the 2 GHz band. Following the announcement, US telecom company shares fell in after-hours trading, while SpaceX (SPCX.O) shares rose more than 1.7%.

Apple officially announces October 13 smart home product launch event. Apple (AAPL.US) announced it will hold a product launch event themed "Welcome home" on October 13 local time in New York, unveiling multiple smart home devices, including a smart home hub with an approximately 6-inch square screen, an upgraded Apple TV 4K set-top box, and a new HomePod mini speaker. All new products will support Apple's latest Siri AI features. Among them, the smart home hub can recognize different family members through a built-in camera and voice recognition, provide personalized content, and integrate apps such as Calendar, Messages, Photos, and FaceTime. In addition, Apple is working with LG Electronics to develop accessories including smart doorbells, thermostats, and indoor security cameras, further expanding its smart home ecosystem.

Analyst Ratings

UBS Group: Raised its price target on Chevron (CVX.US) from $220 to $235.