Overnight US stocks | "TACO transaction" triggers strong rebound in three major indexes, gold and silver continue to hit historical highs.

On Monday, the three major stock indices rebounded strongly, with U.S. President Trump hinting that he would not impose the "substantial increase in tariffs" he had threatened and Vice President Pence signaling hope for negotiations. Tim Kelleher, the head of foreign exchange sales at the Commonwealth Bank of Australia, said, "The market is indeed a bit nervous. Looking at the U.S.-China situation, Trump seems to be once again playing the 'TACO' (Trump Always Chickens Out) drama, softening his tone." Earlier, OpenAI announced a partnership with Broadcom Inc. to develop custom chips and network devices, injecting new optimism into the market. Tom Essaye of Sevens Report said, "As long as the AI capital spending boom continues, the stock market can remain strong." However, he warned, "If the market starts to doubt the stimulative effect of AI on the overall economy and market, the decline will be swift and painful." The rapid rise in tech stocks pushed the S&P 500 index to a new high, but also raised valuation concerns, sparking worries of a stock market bubble. John Belton, a fund manager at Gabelli, said, "There are some similarities, but calling it a 'bubble' now is oversimplifying. It is difficult to assert the existence of a valuation bubble. There is indeed some overheating, but it is mainly concentrated in certain areas or on the fringes of the market." U.S. StocksAt the close, the Dow Jones rose 587.98 points, or 1.29%, to 46067.58 points; the Nasdaq rose 490.178 points, or 2.21%, to 22694.608 points; and the S&P 500 rose 102.21 points, or 1.56%, to 6654.72 points. NVIDIA Corporation's stock (NVTS.US) rose 42% after hours, with the company stating support for the AI platform. European StocksThe German DAX30 index rose 139.27 points, or 0.57%, to 24406.07 points; the UK's FTSE 100 index rose 14.38 points, or 0.15%, to 9441.85 points; the French CAC40 index rose 16.26 points, or 0.21%, to 7934.26 points; the Euro Stoxx 50 index rose 37.73 points, or 0.68%, to 5569.05 points; the Spanish IBEX35 index rose 51.36 points, or 0.33%, to 15537.56 points; and the Italian FTSE MIB index rose 126.50 points, or 0.30%, to 42174.00 points. OilNew York Mercantile Exchange light crude oil futures for November delivery rose 59 cents to close at $59.49 a barrel, up 1.0%; December delivery of London Brent crude oil futures rose 59 cents to close at $63.32 a barrel, up 0.94%. CryptocurrencyBitcoin rose 0.71% to $115909; Ethereum rose over 2.6% to $4270.14. Dollar IndexThe dollar index, which measures the dollar against six major currencies, rose 0.3% to close at 99.274 in the forex market. At the end of New York forex market trading, 1 euro exchanged for $1.1568, lower than the previous day's $1.1609; 1 pound exchanged for $1.3334, lower than the previous day's $1.3346. 1 dollar exchanged for 152.29 yen, higher than the previous day's 151.72 yen; 1 dollar exchanged for 0.8041 Swiss francs, higher than the previous day's 0.8013 Swiss francs; 1 dollar exchanged for 1.4037 Canadian dollars, higher than the previous day's 1.4000 Canadian dollars; and 1 dollar exchanged for 9.5055 Swedish krona, lower than the previous day's 9.5216 Swedish krona. Precious MetalsSpot gold surpassed $4111 and rose over 2% intraday; spot silver surpassed $52. Macro News Fed's Powell hints at supporting two more rate cuts this year, each by 25 basis points. FOMC voter and President of the Philadelphia Fed in 2026, Powell hinted that she leans towards two more rate cuts this year, each by 25 basis points, as monetary policy should ignore the impact of tariffs on consumer price increases. Powell said, "For me, the key is I do not see the conditions that would turn tariff-induced price hikes into sustained inflationespecially on the labor market front." Powell said that the decision to cut rates by 25 basis points last month was "well-justified." With monetary policy moderately tightening, she advocates easing monetary policy according to the Federal Reserve's latest economic forecast summary. The median of these forecasts supports two more rate cuts, each by 25 basis points, before the end of the year. She added that if the economy develops as she expects, the Fed's adjustments in the next two years will be enough to bring the labor market closer to full employment. Ceasefire agreement document signed in Egypt for Gaza. On October 13th local time, the United States, Egypt, Qatar, and Turkey signed a document in Sharm el-Sheikh, Egypt for a ceasefire agreement in Gaza. The Sharm el-Sheikh "Peace Summit" was inaugurated that night, hosted by Egyptian President Sisi and U.S. President Trump. Israeli Prime Minister Netanyahu confirmed his attendance at the last minute but later canceled his trip. The Palestinian Islamic Resistance Movement (Hamas) did not send representatives to the summit. Morgan Stanley: Organic sales of consumer goods companies expected to remain weak in the third quarter. Analysts at Morgan Stanley stated in a report that due to continued weakness in the U.S. market and a slowdown in international markets, organic sales in the consumer goods industry are expected to show weakness again in the third quarter. "We expect weak organic sales growth in the third quarter to continue, and this trend may persist into the fourth quarter," the analysts wrote. They predict that there may be a slight improvement in the industry by 2026, partly driven by tariff-related price increases, but overall growth may still be below long-term trend levels and market expectations. The report also warns that if price increases caused by tariffs further squeeze spending by low and middle-income consumers, macro risks could worsen next year. Standard Chartered Bank: Further rate cuts in 2026 may be challenging if the U.S. economy continues to gain momentum. Analysts at Standard Chartered Bank, Nicholas Chia and Steve Englander, said in a report that while the Fed is expected to continue cutting rates for the rest of 2025, the likelihood of further rate cuts in 2026 may decrease if the U.S. economy continues to gain momentum. The two analysts pointed out that in the medium to longer term, this scenario could push up the U.S. dollar and U.S. bond yields. "We believe that market expectations of a further 63 basis points rate cut by the Fed in 2026 may gradually be phased out, especially if the U.S. economy continues to gain momentum and productivity growth exceeds expectations, which would drive further increases in yields and the dollar." Stifel: U.S. consumers still see dining out as too expensive, restaurant industry mired in downturn may continue. Stifel analysts said that the dilemma facing the U.S. restaurant industry this year shows no signs of easing, despite companies launching numerous promotions, as consumers still see dining out as too expensive. According to a Stifel survey, the proportion of consumers who believe that restaurants are "too expensive" has increased since the beginning of the year, with this trend particularly affecting fast food brands. The analysts pointed out that historically, during periods of economic recession, the cycle of downward earnings expectations for the restaurant industry usually lasts about 28 months, and the current downward revision to earnings forecasts for 2025 and 2026 has lasted 16 months, "indicating that many companies may still face further downside risks." Stock News Microsoft Corporation faces antitrust class action lawsuit, accused of inflating ChatGPT prices. Microsoft Corporation is facing a new consumer lawsuit. The plaintiffs allege that the tech giant illegally inflated the price of generative artificial intelligence by entering into a secret agreement with OpenAI, the developer of ChatGPT. The collective lawsuit has been filed in a federal court in San Francisco, alleging that Microsoft Corporation restricted the supply of computing resources required to run ChatGPT through an exclusive cloud computing agreement with OpenAI. So far, Microsoft Corporation has invested over $13 billion in OpenAI. The lawsuit claims that the agreement Microsoft Corporation reached with OpenAI in the early stages of development violated U.S. federal antitrust laws, stifled market competition, artificially raised the subscription price of ChatGPT, and harmed the product quality for millions of users of the AI platform. MicroStrategy, after Bitcoin hit a new high, invests $27 million to increase holdings. Since Bitcoin reached a record high earlier this month, MicroStrategy, the Bitcoin reserve company founded by Michael Saylor, has once again increased its holdings of Bitcoin, with holdings now valued at over $73 billion. Previously, the company gradually reduced its Bitcoin purchases over several months. As skepticism in the market towards crypto treasury companies grew, MicroStrategy's stock lagged significantly in this month's surge to $126,000, a historical high for Bitcoin. In a press release issued on Monday, MicroStrategy announced that it had purchased an additional 220 Bitcoins at an average price of $123,561 each, totaling $27 million. This is the highest unit price the company has paid to date. This increase brings MicroStrategy's total Bitcoin holdings to 640,250, about 3% of the nearly 20 million Bitcoins currently in circulation. Oracle Corporation CEO: OpenAI capable of paying $600 billion cloud infrastructure services fee annually. According to reports, Oracle Corporation CEO Clay Magouyrk expressed confidence in OpenAI, saying that OpenAI is capable of paying the cost of the large amount of cloud infrastructure services it consumes. At the Oracle AI World Conference on Monday, Magouyrk said in an interview: "OpenAI can 'definitely' afford to pay for $600 billion a year to buy cloud resources." In July of this year, OpenAI reached an agreement with Oracle Corporation worth over $300 billion over five years. Magouyrk said, "Look at the pace at which they're growing, you know, almost a billion users. It's unheard of."