U.S. stocks rose 1%, bitcoin surged 10% and fell sharply, and long-term bond yields rose 10 basis points

Philadelphia Fed President Harker, a member of the FOMC voting committee this year, said the Fed should keep interest rates unchanged if economic data does not change abruptly. The futures market expects a probability of no rate hike of more than 90% in November and only 30% in December.

Markets await Fed Chairman Jerome Powell's speech this week, as well as U.S. real estate and retail sales data. Well-known big companies such as Johnson & Johnson, Bank of America, Netflix and Tesla will release earnings reports, partly igniting optimism and risk appetite.

Investors also continue to focus on the impact of the Israeli conflict on global financial markets and the energy sector, with widespread expectations that Israel will begin a ground offensive on the Gaza Strip this week, with Iran and others expanding the conflict to create more uncertainty and risk-off panic.

Inflation concerns pushed up European bond yields, European Central Bank President Christine Lagarde said he was concerned about the inflation risks posed by the new Palestinian-Israeli conflict through oil prices, and hawkish vote committee and Bundesbank President Nagel said over the weekend that inflation remained too high and monetary policy needed to remain at a level that limited the economy.

U.S. stocks rose about 1%, Lululemon rose more than 10% to lead the Nasdaq 100, the Chinese index turned higher during the session, and vaccine stocks fell deeply

On Monday, October 16, U.S. stocks opened higher across the board, led by the tech-heavy Nasdaq and the more economically linked Russell small-cap stock, driven by optimism about the company's third-quarter report.

By the close, the Dow rose for two consecutive days to a three-week high since September 25, the S&P stopped a two-day losing streak and basically recovered its losses since last Wednesday, and the Nasdaq stopped a two-day losing streak and broke off a one-week low. Russell small-cap stocks halt a three-day losing streak and break from a five-month low:

The S&P 500 closed up 45.85 points, or 1.06%, at 4,373.63. The Dow closed up 314.25 points, or 0.93%, at 33,984.54. The Nasdaq closed up 160.75 points, or 1.20%, at 13,567.98. The NASDAQ 100 rose 1.2% and the Russell 2000 small-cap index closed up 1.6%.

U.S. stocks rose about 1 percent, with the Nasdaq and Russell small-cap leading the day throughout the day

Barclays analysts believe that bond market volatility and Middle East tensions have dragged down the performance of risk assets, but the negative impact can be offset in the short term by corporate earnings reports and dovish comments from Fed officials. RBC has therefore raised its annual EPS forecast for the S&P 500 this year and next.

While rising U.S. Treasury yields and oil prices, persistently high inflation, and ensuing conflicts in the Middle East have prepared some market participants for more volatility before the end of the year, the mainstream on Wall Street is still betting on a rally in stocks in the fourth quarter, with the average target of 4392 at the end of the year and a higher median target of 4500. However, Dalmore and UBS sang the decline of US stocks, expecting the S&P to fall to 3900 by the end of the year.

Star technology stocks rose, Apple was close to erasing its 1% decline, Metaverse "Meta and Amazon rose more than 2%, Google A and Tesla rose more than 1%, all out of a one-week low; Microsoft and Netflix rose 1.5 percent, to one-month highs and five-month lows, respectively.

Apple still closed lower, but came close to erasing more than 1% of losses at the beginning of the session

Chip stocks also rose from a one-week low. The Philadelphia semiconductor index rose 1.4% and rose above 3500 points, Intel rose 1.6%, AMD and Nvidia rose more than 1%, and Arm rose more than 2% to return above the $51 IPO price, out of the post-IPO record low.

AI concept stocks were mixed. C3.ai rose 0.1%, and Palantir Technologies erased nearly 4% of its early market losses, still not far from a one-week low; SoundHound.ai rose more than 6% and BigBear .ai rose more than 2%, both off their lowest levels in nearly three weeks.

On the news, iPhone 15 China premiere sales fell 4.5% compared with iPhone 14, brokerage Jefferies said that iPhone has lost the first position in China's smartphone market share to Android phones, which will lead to this year's iPhone 15 global shipments lower than expected. Morgan Stanley lowered Apple's price target from $215 to $210 due to supply disruptions, and Apple CEO Tim Cook visited Chengdu. As revenue growth slowed year-on-year over the past two years, Microsoft's LinkedIn (LinkedIn) will lay off nearly 670 employees, affecting the core engineering team.

The China Concept Index turned higher during the session, ETF KWEB stopped falling and turned up 0.7%, CQQQ closed down 0.3% after falling 1.4%, and the Nasdaq Golden Dragon China Index (HXC) fell 1.7% and turned up 0.3%, stopping a two-day losing streak and coming out of a one-week low to regain 6500 points.

Among the 100 components of the Nasdaq, JD.com rose more than 2%, Baidu's decline narrowed significantly to 0.2%, and Pinduoduo fell 0.7%. Among other individual stocks, Alibaba and Tencent ADR both stopped falling and turned up 0.4%, the decline of station B narrowed significantly to 0.3%, NIO turned up 0.6% after falling nearly 3%, Li Auto fell more than 2%, and Xpeng Motors fell nearly 5%. Good Future rose nearly 7 percent after UBS upgraded its rating to buy, saying the stock had attractive valuations and bullish on the potential for rapid earnings growth in the non-academic advising business.

Bank stock indexes rose. The industry benchmark Philadelphia Stock Exchange KBW Bank Index (BKX) rose 1.5%, halting a three-day losing streak from a one-week low, and on May 4, it hit its lowest since October 2020. KBW Nasdaq Regional Banking Index (KRX) rose 2.5% off its one-and-a-half-week low, hitting its lowest since November 2020 on May 11; The SPDR S&P Area Bank ETF (KRE) rose 2.6%, hitting its lowest since October 2020 on May 4. In the third quarter, EPS exceeded expectations by asset management giant Charles Schwab Wealth Management, which rose as much as 6%, the largest increase in three months.

Other stocks with large movements include:

Pfizer halted premarket losses and closed up 3.6 percent, off a two-week low, as brokerage Jefferies upgraded its rating to buy on attractive buying opportunities, despite sharply cutting its full-year revenue and earnings outlook as demand for coronavirus drugs and vaccines waned.

But other Covid vaccine makers fell in unison, with Moderna and BioNTech falling more than 6 percent, the lowest since November 2020 and the lowest since March 2021, respectively, and Novavax down 6 percent to a low of at least half a year.

Sports and casual apparel company Lululemon, which rose more than 10 percent, rose seven straight to its highest in nearly two years since November 2021, and will be included in the S&P 500 on Wednesday, replacing Activision Blizzard, acquired by Microsoft, as a constituent.

Data security software vendor Varonis Systems rose as much as 8 percent to its highest in nearly 16 months since June, and Morgan Stanley believes it will be a beneficiary of generative AI, raising its price target and rating to overweight.

"Vietnam Tesla" VinFast Auto fell more than 18% to $6.53, hitting a new closing low since the "US backdoor listing" on August 15, and had updated the intraday record high of $93 on August 28.

Manchester United's ADR fell more than 17% premarket and closed down more than 10% to its lowest in nearly a year since November. After Qatari businessmen withdrew their bids, news broke that the British billionaire was close to buying a 25% stake for $1.5 billion, valuing the club at more than $3.3 billion.

European stocks rose. The pan-European Stoxx 600 index closed up 0.23 percent, led by retail stocks up 2 percent, while healthcare stocks edged lower against the market. Oil giant Shell shares rose to all-time highs in London trading, with Russian stock indexes up more than 1% and Poland up more than 5.3%.

U.S. Treasury yields hovered at one-week highs, with 10- and 30-year yields up 10 basis points as inflation concerns pushed European bond yields higher

Assessing the outlook for the U.S. economy and interest rate policy, as well as geopolitical concerns, U.S. Treasury yields rose in tandem, with 7-30-year yields rising by at least more than 8 basis points.

The more sensitive two-year yield for monetary policy rose more than 4 basis points and pushed up 5.10%, the highest in the week since Oct. 6. The yield on the 10-year base note rose as much as 10 basis points and pushed up to 4.73%, while the yield on the 30-year long-term bond also rose as much as 10 basis points to 4.88%, both hovering at a new one-week high.

U.S. Treasury yields hovered at one-week highs, with yields on long-term bonds over 10 years rising 10 basis points

Inflation concerns pushed European bond yields higher, with the eurozone benchmark 10-year German bond yield rising about 5 basis points to 2.78% in late trading, stabilizing below 2.8% in recent days, with two-year yields rising nearly 2 basis points and 30-year long-term bond yields rising more than 6 basis points. French base yields rose 4 basis points, but Italian benchmarks in the more indebted periphery turned 1 basis point lower.

Meanwhile, both the 10-year and 30-year yields rose about 10 basis points, with the UK base yielding rising above 4.48%, approaching the top since October 10 at 4.53%. The two-year yield rose more than 6 basis points to break 4.90%, and some voters issued hawkish comments.

Oil prices fell more than 1 percent off more than a week high, crude oil fell below $90, and European natural gas fell more than 12 percent off an eight-month high

International oil prices suffered profit-taking, falling more than 1%. WTI crude oil futures for November ended down $1.03, or 1.17 percent, at $86.66 a barrel. Brent crude for December delivery closed down $1.24, or 1.36 percent, at $89.65 a barrel.

December futures, which are more actively traded in U.S. oil and WTI, fell as deep as $1.32 or 1.5%, approaching the $85 mark on a daily low, erasing nearly half of Friday's gains and coming out of more than a week high. Brent fell as deep as $1.38 or 1.5%, losing the psychological integer of $90.

Oil prices fell more than 1% off more than a week high, and crude oil fell below $90

Both oil prices rose nearly 6 percent on Friday, bringing crude oil up 7.5 percent and WTI up 5.9 percent last week, as investors worried that Iran would be drawn into a new round of Palestinian-Israeli conflict, which in turn escalated geopolitical risks from last year's Russia-Ukraine conflict.

There is also news that the United States will ease sanctions on Venezuelan oil, and jointly participate in driving down today's oil prices.

European benchmark TTF Dutch natural gas fell more than 12 percent, off its eight-month high since late February and regained the €50/MWh integer. ICE UK Gas also fell more than 11 per cent to 120p/kcal, having risen above the 140p mark on Friday.

Some analysts say that the new round of Palestinian-Israeli conflict, damage to European gas pipelines and Chevron's resumption of strikes at Australia's LNG plant have caused concerns about supply disruptions, with European natural gas soaring 41% last week but still less than half the price of a year ago.

The dollar came out of a one-week high, with the offshore yuan falling below 7.32 yuan and rising above 7.31 yuan, while bitcoin erased an earlier gain of 10%.

DXY, a basket of dollar indexes against six major currencies, fell 0.4 percent to 106.20, off a one-week high from an 11-month high of 107.34 two weeks ago, with analysts saying there are still safe-haven buying for the greenback.

The dollar departs from a one-week high

The euro rose 0.4% against the dollar and held above 1.05, and the pound, which rose above 1.22 and rose as high as 0.6% against the greenback, broke off one-week lows. The yen remained below 149 against the dollar and approached the 150 mark, which led to speculation that the Japanese government would step in to rescue the currency.

The offshore yuan once fell to 7.32 yuan against the US dollar, down more than 80 points from the previous close, and the intraday decline of U.S. stocks narrowed significantly and regained the 7.31 yuan mark, hovering at a one-week low.

Markets are eyeing the situation in the Middle East, with the Israeli shekel falling below the 4 shekel mark against the dollar for the first time since 2015, and hitting an eight-day streak low since last week, and has fallen more than 4% since the outbreak of the new Palestinian-Israeli conflict on October 7.

The Israeli shekel fell below 4 against the dollar for the first time since 2015

Mainstream cryptocurrencies are generally rising. Bitcoin, the largest leader by market capitalization, erased all of its earlier gains of 10% and returned below the $30,000 integer psychological mark, then rose 5% to trade $28,600, still hitting a two-month high, and the second-largest Ethereum, which rose nearly 2% and rose above $1,580, to a one-week high.

Earlier it was reported that the U.S. Securities and Exchange Commission (SEC) approved the listing of iShares' Bitcoin spot ETF, but BlackRock Group, the issuer of iShares, subsequently clarified that the spot Bitcoin ETF listing application is still under SEC review, allowing Bitcoin to lead cryptocurrencies to soar and fall. Bitcoin fell 4.3% last week, its worst performance on August 18 and its first weekly decline in six weeks.

Bitcoin soared 10% and topped $30,000 at one point, then quickly erased all gains and rose again at the end of the day

Spot gold fell below $1920 to break a three-week high, a weaker dollar boosted London metals, and London copper remained below $8,000

Gold also suffered profit-taking. COMEX gold futures for December ended down 0.37% at $1934.30 an ounce, while silver futures fell more than 0.5% to remain below the $23 integer.

Spot gold turned down 0.7% and lost the integer level of $1920 at the beginning of the U.S. stock market, briefly rising nearly $10 and rising above the $1930 mark, and once lost $1910 throughout the day, off a three-week high since September 20.

Gold jumped 3.4 percent on Friday to its biggest one-day gain in seven months on strong safe-haven demand and short covering, triggering profit-taking. Some analysts said that fears of a possible escalation of the conflict in the Middle East will keep gold above $1,900 an ounce.

Spot gold broke off a three-week high

A weaker dollar boosted London's industrial base metals. The economic vane "Dr. Copper closed slightly higher, halting a two-day losing streak but still less than the $8,000 integer psychological mark, and concerns about the Middle East crisis and global growth still weighed on the market, with copper prices down 10% since early August.

Lun aluminum fell nearly 1% to a one-and-a-half-month low since the end of August. Lunzinc hovered at a one-month low since early September. London lead rose 1.5 percent, essentially recovering losses since Thursday and coming off a more than four-month low. London nickel edged off a two-year low, with London tin hitting its highest monthly level.

Ole Hansen, head of commodity strategy at Saxo Bank in Denmark, said that short positions in copper, despite a sharp reduction, remained in a strong position, indicating that traders are not confident in copper prices: "If the conflict in the Middle East expands, oil prices may skyrocket, which will increase recession fears, which is generally bad for metals." "But China's September copper imports hit a new high for the year, and stronger-than-expected physical demand helped support prices."