On Tuesday, the three major US stock indexes closed lower, while the 30-year US Treasury yield rose for a sixth consecutive trading day. Heavy corporate debt issuance and elevated energy prices that fueled rising inflation pressures pushed the 30-year Treasury yield above 5.61%, the highest level since 2002.

US Stocks

At the close, the Dow Jones Industrial Average fell 347.11 points, or 0.67%, to 51,481.51; the S&P 500 dropped 59.72 points, or 0.77%, to 7,683.69; and the Nasdaq Composite declined 248.34 points, or 0.92%, to 26,820.38. Meta Platforms (META.US) gained more than 3%, SK Hynix (SKHY.US) rose 2.6%, and Oracle (ORCL.US) climbed 4%. The Nasdaq Golden Dragon China Index closed down 1.55%.

European Stocks

Germany's DAX 30 fell 14.81 points, or 0.06%, to 25,392.30; the UK's FTSE 100 dropped 52.67 points, or 0.49%, to 10,632.21; France's CAC 40 declined 42.61 points, or 0.53%, to 8,035.87; the Euro Stoxx 50 gained 20.07 points, or 0.32%, to 6,321.35; Spain's IBEX 35 fell 85.49 points, or 0.44%, to 19,514.81; and Italy's FTSE MIB added 15.60 points, or 0.03%, to 51,775.50.

Asia-Pacific Stocks

Japan's Nikkei 225 fell 0.6%, South Korea's KOSPI dropped 0.27%, and Indonesia's Composite Index declined 0.43%.

Forex

The US Dollar Index, which measures the greenback against six major currencies, rose 0.17% on the day to close at 101.372. At the New York close, the euro traded at 1.1341 per dollar, down from 1.1368 the previous session; the pound was at 1.3229 per dollar, down from 1.3261; the dollar fetched 157.22 yen, down from 157.40; the dollar was at 0.8336 Swiss francs, up from 0.8319; the dollar traded at 1.4178 Canadian dollars, up from 1.4171; and the dollar was at 9.9892 Swedish kronor, up from 9.9537.

Cryptocurrencies

Bitcoin hovered around $83,000, trading at $83,533 as of publication; Ethereum slipped 0.15% to $2,681.

Precious Metals

Spot gold stood at $4,181.86 per ounce; spot silver was at $61.47 per ounce.

Crude Oil

International oil prices fell significantly on the 29th. At the close, the November-delivery light crude futures contract on the New York Mercantile Exchange dropped $3.22 to settle at $89.38 per barrel, a decline of 3.48%; the November-delivery Brent crude futures contract in London fell $2.69 to settle at $102.59 per barrel, a drop of 2.56%.

Macro News

Trump is set to appoint an AI chief, with Director of National Intelligence Clayton seen as a potential candidate. According to reports, US President Trump said on Tuesday that Director of National Intelligence Jay Clayton would be a good choice for "AI chief." When asked whom he wanted to serve as AI chief, Trump said, "I have someone in mind." Asked about Clayton, Trump added, "Clayton is a good man. He's right here. That's a good idea." The specific responsibilities of the position are not yet clear, though Trump has previously said he wants to establish a new government agency called the "AI Force." At his confirmation hearing in July, Clayton said that, similar to Treasury Secretary Bessent's view, the notion that "AI is both an opportunity and a threat" also applies to the intelligence community. Trump told reporters outside the White House that he hopes to finalize the choice within the next three to four days.

Fed's Goolsbee: Inflation persistently above target is "playing with fire." Chicago Fed President Austan Goolsbee said US inflation has remained above the Fed's 2% target for more than five and a half years, and keeping inflation high for so long amounts to "playing with fire," adding that the Fed needs to pay attention to the effects of persistent supply shocks. Goolsbee said the current situation is "unpleasant," but if supply shocks have long-term effects, the Fed may need to reconsider its earlier policy logic of "ignoring supply shocks." He said that before considering rate cuts, the Fed needs to see more evidence that inflation is falling and that factors previously deemed temporary are fading. Goolsbee also warned that large fiscal deficits are themselves a form of stimulus that could overheat the economy. He said market expectations for future AI-driven productivity gains could also create current overheating risks, and the Fed needs to closely monitor productivity changes. He noted that oil prices could fall quickly, but the deeper problem lies in the process of restoring refinery operations. Goolsbee said factors such as energy prices, AI investment, and fiscal stimulus could all influence the future path of inflation.

Fed's Williams: Another rate hike may come this year, but there is no need to rush. New York Fed President John Williams said the Fed does not need to act again quickly after raising rates at its September meeting and can wait for more economic data to determine the next policy direction. Williams said that if the economy evolves roughly in line with his expectations, further increases in the federal funds rate target range may be needed before the end of the year to help bring inflation back to the 2% goal in a more timely manner. But he stressed that this is only his personal forecast and that the final decision will depend on future data. Williams said that with growth remaining solid and the job market performing well, inflation pressures will continue to be the focus of monetary policy. He said the Fed must ensure that inflation does not remain elevated due to shocks and must avoid the formation of second-round inflation effects. He noted that this year's inflation pressures have been affected by Trump's tariff policies and higher energy prices caused by Middle East conflict, while AI investment has also pushed up some price pressures. Williams expects US inflation to reach about 3.5% by the end of this year, then gradually decline and return to target in 2028. Williams expects US economic growth of about 2.25% this year and an unemployment rate of about 4% next year. He said immigration factors, population aging, and limited productivity growth constrain the economy's long-term growth potential.

OPEC delegates: OPEC+ may keep November output quotas unchanged. Two OPEC+ delegates said major OPEC+ members may keep November crude production quotas unchanged at this weekend's meeting, continuing the existing supply plan. Members led by Saudi Arabia and Russia have largely completed the nominal rollback of 2023 production cuts, and are expected to confirm at a Sunday video conference that November output targets remain stable. The report said that although OPEC+ had previously agreed to gradually increase production, some capacity in the Middle East has still not recovered due to the impact of the Iran conflict, leaving the previously announced increase plan more on paper. OPEC+ previously said that restoring part of the capacity paused in 2022 would not be considered until at least after the end of this year. However, due to insufficient investment, sanctions, and other supply disruptions affecting some members, restoring previous production levels still faces difficulties. OPEC+'s supply policy for next year will also depend on the results of an assessment of members' crude production capacity, which is expected to be completed this week and discussed at the formal ministerial meeting on November 29.

US plans to release 40 million barrels of strategic petroleum reserves to ease fuel price pressure. According to reports, the US Department of Energy said on Tuesday that the Trump administration plans to provide energy companies with 40 million barrels of Strategic Petroleum Reserve (SPR) crude to address rising fuel prices caused by the escalation of the Iran conflict and the Russia-Ukraine war. The Department of Energy said the measure takes the form of a "loan," under which companies will borrow SPR crude and must return it in the future. Previously, in March, the United States reached an agreement with the International Energy Agency (IEA) and about 30 countries, and as part of a plan to release about 400 million barrels of crude globally, the US pledged to provide 172 million barrels from strategic reserves. The Trump administration proposed in June releasing the remaining 40 million barrels under that agreement, but data at the end of that month showed that energy companies actually agreed to borrow only about 500,000 barrels.

Company News

Tesla signed a $30 billion financing arrangement, including a revolving credit facility and delayed draw term loans. According to a US Securities and Exchange Commission (SEC) filing, Tesla (TSLA.US) entered into multiple financing arrangements, including a $20 billion three-year delayed draw term loan facility, an $8 billion five-year revolving credit facility, and a $2 billion 364-day revolving credit facility. The filing showed that Tesla also terminated its existing revolving credit agreement. The new five-year revolving credit facility allows for letters of credit of up to $500 million, and the three-year delayed draw term loan facility matures on September 29, 2029. In addition, Tesla's revolving credit facility can be increased by up to $4 billion, to $14 billion.

OpenAI seeks $30 billion in new funding with a $1.4 trillion valuation target. According to people familiar with the matter, OpenAI plans to raise at least $30 billion from investors in a new funding round. The company is seeking new capital support after delaying its initial public offering plans. The people said OpenAI is targeting a valuation of about $1.4 trillion in this round, excluding the new funding. If achieved, that valuation could again exceed the private-market valuation previously reached by long-time rival Anthropic. The people said the funding talks are still at an early stage and arrangements may change. OpenAI declined to comment. OpenAI CEO Sam Altman previously said the company would not go public this year and would instead focus on addressing AI safety issues, calling the current IPO timing "unwise." This funding round is seen as a bridge round replacing an IPO, providing OpenAI with additional capital. OpenAI's most recent funding took place in March this year, when it raised $122 billion at a valuation of $852 billion including the funding amount.