US Mega-Cap Tech Rises Amid China's Market Drop Affecting Crude, Crypto, & Gold

Chinese Stock Market Experiences Significant Drop

Chinese stocks experienced a significant drop overnight as the country returned from its Golden Week holiday. The market's response was less enthusiastic than expected due to lack of stimulus chatter from China.

US Stocks Remain Unaffected

Despite the downturn in the Chinese market, US stocks remained unaffected. The large-cap stocks led the market, with NVDA rising due to a partnership with HonHai to meet high demand. The Nasdaq emerged as the best performer, followed by the S&P 500, while Small Caps were the day's underperformers. This marked the Nasdaq's best day since the spike following the September FOMC.

Mag7 Basket Recovers

The Mag7 basket managed to recover from the previous afternoon's drop, but it remains rangebound.

Mixed Day for Treasuries

Treasuries had a mixed day, with the short-end outperforming.

Rate-Cut Expectations Remain Hawkish

Rate-cut expectations remain notably more hawkish than they have been since the last FOMC meeting.

Dollar Breaks Out of Post-Payrolls Range

The dollar managed to break out of its post-payrolls tight range, but it was not convincing.

Gold and Oil Prices Drop

The slight increase in the dollar managed to affect gold prices, which dropped but found support around $2600. Oil prices also dropped as the lack of further stimulus from China dulled its appeal.

Bitcoin Drops to $62,000

Bitcoin also experienced a drop, slipping back to $62,000 and erasing the previous day's spike.

Upcoming Risk Catalysts

Despite US stocks remaining unaffected by the drop in the Chinese market today, there are several risk catalysts to look out for. These include Thursday's CPI report, Q3 earnings starting on Friday, and the upcoming election.

Bottom Line

While US stocks managed to shrug off the downturn in the Chinese market today, it's important to remain aware of the potential risk catalysts in the days ahead. It's a complex financial landscape with many interconnected factors, and even seemingly minor events can have significant ripple effects. What are your thoughts on these developments? Feel free to share this article with your friends and discuss. Don't forget to sign up for the Daily Briefing, which is delivered every day at 6pm.