US equities have largely remained strong, aided by robust earnings growth driven by the AI capital expenditure cycle. Rising bond yields and geopolitical tensions, however, are beginning to impact investor sentiment negatively. Analysts are concerned about the sustainability of the AI capex cycle and its expected returns. Additionally, there is a realization that G7 government bonds are entering a structural bear market.
Fed officials tempered expectations for an October rate hike after Philip Jefferson and John Williams stressed patience and data dependence. Markets sharply reduced hike odds, though persistent inflation and upcoming consumer price data could shape the Federal Reserve’s policy decision.
Last month, the US economy added only 29,000 jobs, significantly below the economists’ forecast of 90,000 jobs. The unemployment rate rose to 4.2%, indicating a slight deterioration in the labor market. Traders decreased expectations for another Federal Reserve interest rate hike later this year, with less than a 20% chance for October. Despite a recent rate increase, inflationary pressures remain a concern for policymakers.
US equity exchanges will begin extended trading hours with an overnight session from 9 p.m. to 4 a.m. starting December 6. The changes aim to cater to growing foreign investor interest and compete with crypto markets. However, concerns about market liquidity and increased risks during these hours are prevalent among institutional investors. Pre-existing trading volumes suggest that institutional participation during night hours may be limited.
Nike has faced significant challenges under Elliott Hill, who was brought out of retirement to stabilize the company. Despite efforts to rebuild relationships with retailers and focus on sports products, revenue continues to decline. The company announced job cuts and projected further declines in sales and profit for the upcoming fiscal year. Nike is also contending with performance issues in its markets, particularly in China.
In September, foreign portfolio investors shed a staggering Rs 35,860 crore from Indian equities, driven by global uncertainties and rising US interest rates. This selling trend persisted into October with an outflow of Rs 9,232 crore. This selling follows significant investments of Rs 49,830 crore made in July and August.
Global equity funds attracted $34.76 billion in the week through September 30, marking a second straight week of inflows as optimism around AI investment and softer US inflation pushed up investor demand for stocks despite rising bond. US, European and Asian equity funds all saw inflows, while emerging-market equity funds posted outflows for a fourth consecutive week.
Leasing of office spaces in nine major Indian cities during January-September 2026 reached 66.4 million square feet. This represents an 8 percent year-on-year increase in demand for these spaces. Global Capability Centres have significantly contributed to this growth, leasing 28 million square feet in total. The overall absorption during the July-September quarter was 21 million square feet, reflecting a 6 percent rise.
Transformations in the global economy are reshaping how investors allocate capital and devise strategies. Geopolitical conflicts and tech rivalries are challenging conventional wisdom, leading to heightened interest in markets such as India, Southeast Asia, and the Gulf states. Strategic investments in infrastructure and commodities have gained importance. The upcoming ET Alpha Wealth Summit aims to delve into these transformative investment trends.
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