Perspective: Morning Commentary for October 23
October 23 – The tech heavy Nasdaq saw its worst day since June yesterday, closing 2.9% lower, with concerns regarding the sustainability of the ongoing AI buildout in the backdrop of rising borrowing costs and increasing sovereign debt driving investors into safe havens, as evidenced by the surge in buying in the bond markets. Stock futures are pointing to a lower open again today, though Nasdaq futures are showing the smallest losses among the major indexes, a potential sign of an easing of selling pressure in the tech sector. The VIX is up 6% to start the day, trading just below 20.2 at the time of writing, hovering near its highest level since last Friday. The dollar is looking at a quiet start to the day after a largely quiet week, sitting just above unchanged near 101.68. Treasury yields are modestly higher this morning after falling notably this week, with 2-year yields at 4.66%, 10-year yields at 4.97%, and 30-year yields just above 5.29%. Crude oil prices are on the rise as the market rebuilds geopolitical risk premium amid escalatory rhetoric from the U.S. / Israel and Iran, raising fears of renewed and potentially even more intense back-and-forth strikes. Nearby WTI is up 2.5% to start the day, carving out a fresh five-week high of $101.60 at the time of writing, while nearby Brent is up another 1.35% on the day to trade near $114.70, nearing a six-month high. Meanwhile, the ags are looking at a quietly mixed open.
- Grains & Oilseeds
- Energy
- Dairy
- Renewable Fuels
- Meats & Livestock
- Forest Products
