Trading Day: AI-pocalypse now

The 10-year U.S. Treasury yield rose above 5% on Monday for the first time in nearly three years, as yet another rise in energy prices from supply disruptions in the Middle East fueled worries over inflation. Meanwhile, AI stocks dragged Wall Street into the red, as fears over the destructive force of artificial intelligence spooked investors.

• The 10-year U.S. Treasury yield surpassed 5% for the first time in nearly three years, driven by rising energy prices and inflation concerns.
• AI stocks experienced a downturn, contributing to Wall Street's decline amid growing fears about the potential destructive impact of advanced artificial intelligence.
• The article highlights the bond market selloff and the flattening yield curve as key indicators of potential economic struggles due to higher borrowing costs, while also noting upcoming Chinese economic data and geopolitical developments.

Topics: Asset types, Market cycles macro sensitivity, Ai automation, Financial instruments, Interest rate sensitivity, Ai trading risk mgmt

Tags: #10yeartreasuryyield #inflation #energyprices #aistocks #yieldcurve #borrowingcosts #aidoomerism #riskoff #chinaeconomicdata #brics

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US military fended off Iranian drones as it escorted a record amount of oil through Strait of Hormuz, sources say

The US military escorted 40 commercial vessels carrying 18 million barrels of oil through the Strait of Hormuz, marking a wartime high as Iran and the US exchanged a new round strikes on Tuesday, two US officials familiar with the operations told CNN.

• The US military successfully escorted a record 40 commercial vessels carrying 18 million barrels of oil through the Strait of Hormuz, while fending off Iranian drone attacks.
• Despite the success, energy companies remain wary of the risks, and high energy prices are causing turbulence in the global bond market.
• The US strategy focuses on degrading Iran's ability to threaten commercial shipping and maintain a naval blockade, though achieving 'total control' of the strait faces skepticism from industry officials.

Topics: Asset types, Jurisdictions, Market cycles macro sensitivity, Real assets, Cross jurisdictional policy, Market volatility liquidity

Tags: #straitofhormuz #iraniandrones #oiltransport #usmilitaryescort #commercialvessels #wartimehigh #energyprices #globalbondmarket #navalblockade #shippingindustry

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Gold Extends Gain as Hormuz Deal Progress Lowers Rate-Hike Odds

Gold extended the biggest gain in six months as signs of progress in reopening the Strait of Hormuz eased energy-led pressure on the Federal Reserve to raise interest rates. Iran said it has reached agreement with Oman on a proposed shipping route through the strait, raising the prospect of some energy flows resuming through the critical waterway. Signs of progress in ending the conflict has markets now fully pricing in only a single US rate increase by year-end, down from two as recently as last week.

• Gold prices surged due to progress in reopening the Strait of Hormuz, easing concerns about energy-led interest rate hikes by the Federal Reserve.
• Market expectations have shifted, now pricing in only one US rate increase by year-end, which is generally positive for non-yielding assets like gold.
• Despite positive momentum, a tight energy market remains a hurdle for a sustained gold bull run, while the Bank of Korea explores purchasing domestically refined gold.

Topics: Asset types, Market cycles macro sensitivity, Alternative assets, Interest rate sensitivity, Inflation recession impact

Tags: #gold #straitofhormuz #federalreserve #interestrates #inflation #iran #oman #preciousmetals #energyprices #bankofkorea

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Analysis: Trump said he loves inflation. Why that should be music to Kevin Warsh's ears

The president said Wednesday he is happy with inflation at 4.2%. That will be welcome news for new Fed Chair Kevin Warsh.

Topics: Public debt, Market cycles macro sensitivity, Jurisdictions, Tokenized us treasuries, Interest rate sensitivity, Established hubs

Tags: #inflation #interestrates #federalreserve #kevinwarsh #donaldtrump #monetarypolicy #treasuryyields #geopolitics #energyprices #categorized

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LARRY KUDLOW: Trump’s secret oil stash could steady Fed interest rates

LARRY KUDLOW: Trump’s secret oil stash could steady Fed interest rates

Topics: Asset types, Market cycles macro sensitivity, Political endorsements opposition, Commodity, Interest rate sensitivity, Pro innovation policy

Tags: #oilsupply #straitofhormuz #fedinterestrates #larrykudlow #donaldtrump #energyprices #inflation #cpi #supplysideeconomics #geopolitics #categorized

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