Wall Street Rebounds; Gold and Silver Surge

U.S. stocks rose on Friday: the S&P 500 gained 0.59 per cent, the Nasdaq 0.64 per cent and the Dow 0.83 per cent. Europe also rose, with the FTSE 100 up 1.06 per cent and Germany's DAX up 1.13 per cent. Gold futures jumped 1.43 per cent and silver 2.73 per cent. The 10-year Treasury yield ended near 5.24 per cent, after touching 5.31 per cent on Monday, its highest since 2002.

Why it matters: Stocks and metals rose together because a strong 30-year bond auction cooled long-term yields.

AI Revenue Scare Shakes Tech, then Fades as OpenAI Targets $70bn

On Thursday the Nasdaq fell 1.25 per cent after the Financial Times reported OpenAI's annualised revenue at about $50 billion. On Friday Bloomberg reported the company expects to reach or exceed $70 billion by the end of the year, and tech recovered. AT&T, Verizon and T-Mobile fell 7 per cent or more after SpaceX agreed an $8 billion spectrum purchase. For the week the S&P 500 gained about 1.2 per cent.

Why it matters: AI stocks now swing on revenue headlines; a gap between two reports was enough to move the whole Nasdaq.

Fed Expected to Hike Again by Year-End; 10-year Yield at 5.24%

The Fed raised rates on September 16, by a quarter point to a range of 3.75 to 4 per cent, in a 12 to 0 vote. Minutes show 12 of 18 officials expect one more quarter-point hike, four expect two more, and two expect none. Markets put only a small chance on a hike at the October 27 to 28 meeting. The 10-year Treasury yield ended Friday at 5.24 per cent; a strong 30-year auction helped cool long-term yields.

Why it matters: The Fed is raising rates, not cutting them, so borrowing stays expensive and savers keep earning more.

Oil Steady Near $92 as Trump Announces Russian Diesel Supplies

U.S. crude settled near $91.85 a barrel on Friday and Brent near $104.7. After a call with Vladimir Putin, President Trump said Russia would supply more than 300,000 tonnes of diesel immediately and 500,000 tonnes in November. A U.S. licence allows Russian diesel sales until April 7, 2027. New York diesel futures fell about 3 per cent, to near $4.74 a gallon, though NBC reports diesel is still up roughly 70 per cent since the Iran war began in February. Nine tanker attacks were logged around Hormuz in early October.

Why it matters: Diesel moves freight and food costs, so relief there matters more to prices than the crude headline.

Gold Jumps 1.4% to $4,216; Silver Surges 2.7% to $61

Gold futures rose 1.43 per cent to $4,216.30 an ounce on Friday, and silver futures rose 2.73 per cent to $61.05. Gold miners rose even faster, with the GDX miners fund up about 3 per cent. Analysts credit a well-bid 30-year Treasury auction, which cooled long-term yields and stalled the dollar, plus tanker attacks and inflation worries. Even so, gold remains below its 50-day and 200-day averages.

Why it matters: Metals pay no interest, so they tend to rise when yields ease; at 5% yields, rallies stay fragile.

Bitcoin Near $82,000, Down About 3% on the Week

Bitcoin closed Friday near $82,100, down about 2.8 per cent on the week, ending a three-week winning streak. Ether fell about 6.8 per cent on the week to near $2,490. Spot bitcoin funds lost more than $700 million in net outflows, and about $550 million of leveraged bets were wiped out. Bitcoin is roughly 32 per cent below a year ago and about a third below its record of $126,198, set last October.

Why it matters: Crypto is trading like a rate-sensitive risk asset, not a safe haven.

30-year Mortgage Rate Hits 7.40%, Seventh Straight Weekly Rise

Freddie Mac says the average 30-year fixed mortgage rate rose to 7.40 per cent from 7.28 per cent, the seventh straight weekly rise. A year ago it was 6.30 per cent. The 15-year rate is 6.73 per cent. Realtor.com's economist blames inflation expectations, a bond selloff and rising deficits. The University of Michigan's October sentiment reading fell to 46.3, a five-month low, with frustration over living costs. Weekly jobless claims were 197,000. U.S. household debt stood at $18.77 trillion in the second quarter, including $1.26 trillion on credit cards.

Why it matters: Higher borrowing costs and weak confidence squeeze buyers even while the job market holds up.

PepsiCo Beats but Cuts Profit Outlook; Delta Misses on Fuel Costs

PepsiCo reported revenue of $25.27 billion, up 5.6 per cent and ahead of forecasts, and core earnings of $2.34 a share against $2.29 expected. But it cut its 2026 core profit growth outlook to between 2.5 and 3.5 per cent, from 5 to 7 per cent. Delta earned $1.72 a share against $1.82 expected, as its fuel bill rose 62 per cent from a year ago to $4.1 billion. Netflix is reportedly cutting about 5 per cent of staff, according to Puck; the company has not confirmed it.

Why it matters: Beating forecasts but lowering guidance, and fuel eating airline profit, both point to costs squeezing earnings.

India's Central Bank Raises Rates to 5.50%; Global Stocks Rise

India's central bank raised its repo rate by a quarter point to 5.50 per cent on October 7, the first hike since February 2023, and shifted to a stance of calibrated tightening. It forecasts inflation of 5.2 per cent this financial year. On Friday India's Sensex rose 879 points, or 1.23 per cent, to 72,472. In Europe the FTSE 100 gained 1.06 per cent to 10,552 and Germany's DAX 1.13 per cent to 25,087, while Japan's Nikkei was flat.

Why it matters: Central banks from Washington to Mumbai are tightening, not easing, so global borrowing costs are rising together.

Week Ahead: Bank Earnings, US Inflation and the Social Security Raise

On Tuesday October 13, JPMorgan, Goldman Sachs, Citigroup and Wells Fargo report earnings. On Wednesday the 14th, September inflation is due, with forecasters expecting prices up 0.6 per cent on the month and 3.6 per cent on the year, against 3.4 per cent before. The 2027 Social Security raise is announced the same morning, about 8:30 Eastern; the Senior Citizens League estimates 3.5 per cent, about $73 a month on the average benefit. Producer prices and retail sales follow on Thursday, and the Fed meets October 27 to 28.

Why it matters: CPI on the 14th tells us whether the Fed leans towards another hike, and it sets the 2027 benefit rise.