Bonds & Stocks
The stock market lost steam after a rally that put US equities on pace for their best month since July 2022, with traders awaiting the latest Federal Reserve minutes and Nvidia Corp.’s results. S&P 500 futures signaled the gauge will halt a five-day surge after hitting “overbought” levels. As the earnings season winds down, questions on the sustainability of the advance led by the “Big Seven” group of megacaps resurfaced, with Nvidia expected to report a surge in both sales and profit. The caveat is that after more than tripling this year, the shares have little room for error.
Economy
Minutes of the Oct. 31-Nov. 1 FOMC meeting will shed light on why the committee’s policy statement and Fed Chair Jerome Powell’s remarks were relatively dovish, despite strong economic data leading into the gathering. Fed officials and staff may have noted more downside risks to the economy – or in the FOMC’s own language, more “balanced” risks – including more rapid labor-market cooling, signs of slower credit demand, and a surge in longer-dated Treasury yields.
World
Talks between Hamas and Israel via intermediaries about a potential truce deal appear to be intensifying, with the Palestinian group mulling the release of hostages that could lead to a limited pause in heavy fighting. Hamas leader Ismail Haniyeh gave rare public comments indicating progress in the Qatar-mediated negotiations, after US President Joe Biden said an accord could be reached to free some of the 240 people kidnapped when Hamas fighters stormed Israel on Oct. 7.