Bonds & Stocks
The rate on repurchase agreements for dollars jumped Thursday the debt-ceiling impasse spurred cash lenders to withdraw from making overnight loans backed by Treasury securities. The general collateral repo rate first traded at 5.14% before climbing to 5.15%, 5.16%, 5.17% and 5.18%, according to ICAP. By comparison, the offering rate on the Federal Reserve’s overnight reverse repo facility is 5.05%.
Economy
The Nasdaq 100 rallied and chipmakers soared Thursday as a bullish sales forecast from Nvidia Corp. ignited gains in companies linked to the frenzy for artificial intelligence stocks. Nvidia shares soared 30% at the open after its forecast for surging revenue surprised even the most optimistic analysts on Wall Street, propelling the company to the cusp of a $1 trillion market value. The Nasdaq 100 added 2.0% and ASM International NV led technology sector gains on the Stoxx 600 Index.
World
Ukrainian President Volodymyr Zelenskiy said Russia may be switching to so-called mixed strikes with varying types of drones and missiles as the nation’s air defense said it shot down 36 loitering drones on Thursday. The attacks by the Iranian-made Shahed drones likely targeted crucial infrastructure and military targets in western Ukraine, including the 12th attack on Kyiv this month. Air-raid sirens went off across the country.