Both oil and interest rates are rising again today, while stocks and gold and silver prices are falling. The dollar is modestly higher.
Crude oil prices are back to climbing after President Trump rejected a proposed Iranian peace deal. The country floated its proposal to fully reopen the Strait of Hormuz at the UN General Assembly, but Trump said on Saturday that he wouldn’t accept it. That said, oil prices are down from their Sept. 15 peak around $106 because new data shows Middle Eastern producers are finding ways to get oil out of the region despite Iranian threats.
Interest rates are the other big macroeconomic story. The 10-year Treasury yield surged to as high as 5.23% today from 4.7% at the end of August amid rising inflation fears and worries about out-of-control government spending. The highest bond yields since 2007 are putting upward pressure on mortgage rates. They will almost certainly be followed by more short-term rate hikes from the Federal Reserve later this year and/or in early 2027, too.
WTI Crude Oil (Black), 10-Year Treasury Yield (Green) – 3-Mo. % Change
Source: TradingView
Could South Korean chip giant SK Hynix Inc. (SKHY) be planning to float its Solidigm subsidiary? Reports suggest the US NAND flash memory division could be taken public sometime next year. SK Hynix is targeting a $15 billion Initial Public Offering (IPO), which would rank as one of the largest semiconductor IPOs ever if it happens. SK itself raised $26.5 billion by selling US-traded ADRs back in July.
Finally, Nvidia Corp. (NVDA) is boosting the size of its stock buyback plan by a whopping $150 billion. The AI chipmaker said it would now buy back $235 billion of its shares through fiscal 2028, with CEO Jensen Huang saying “the authorization reflects our confidence in the long-term opportunity ahead.” Nvidia stock is up 20.6% year-to-date.
