Claude Sparks Optimism

- Stocks rallied ahead of earnings releases and the FOMC decision, as Anthropic’s public financial disclosures and IPO expectations lifted sentiment toward technology shares. The Nasdaq rose 1.2%, while the S&P 500 gained 0.6%. Corporate bond spreads, which had been a source of concern, also showed signs of improvement amid expectations of fresh capital flowing into the AI sector. The latest available high-yield spread, dated October 26, narrowed 8 basis points, from 338 to 330 basis points. It will be worth watching whether these conditions improve more decisively after earnings announcements and the interest rate decision. Sources: AP on the U.S. market close · Axios on AI financing trends · FRED high-yield spread

- Israel’s general election increasingly looks likely to produce difficult coalition negotiations, as opinion polls had suggested. Public broadcaster Kan’s exit poll projected 50 seats for Netanyahu’s bloc and 53 for the main opposition bloc, leaving both short of the 61 seats needed for a majority in the 120-seat parliament. If coalition talks drag on, incumbent Prime Minister Netanyahu will remain in office at the head of a caretaker government. In my view, the possibility of strikes against Iran after the U.S. midterm elections remains intact. Netanyahu is effectively buying time. Sources: Times of Israel on the exit poll · AP on coalition formation and the caretaker government

- Oil prices remain elevated. WTI settled at $99.90 a barrel yesterday, while Brent closed at $113.88, extending an environment of persistently high oil prices, with WTI hovering around $100. AI hardware companies will likely continue to deliver strong earnings, but the market is increasingly turning its attention to technology companies that put AI to use. Cybersecurity is already attracting interest, and AI applications in biotechnology and medical technology also appear to be gaining attention. My view is that these areas may offer less upside than semiconductors, but could follow a relatively steadier path. Sources: eOption on the oil market close · Tempus AI share-price history

- Korean stocks surged during yesterday’s session before giving back some gains, leaving a disappointingly long upper wick on the daily chart. The KOSPI climbed as high as 5,737.61 but closed at 5,638.34, with its gain narrowing from 4.90% intraday to 3.09% at the close. The rebound has arrived; the next question is whether the market can absorb overhead selling pressure and break out. Sources: Maeil Business Newspaper on the KOSPI close · KOSPI intraday high and percentage gains