Overnight US stocks | U.S. Treasury selloff fails to stop stocks from rising; all three major indexes close higher, with the Nasdaq hitting a record high.

Monday saw the three major indexes rise on the back of tech stocks, with the Nasdaq hitting a record high, even as the 10-year U.S. Treasury yield surged to its highest level in more than 20 years. NVIDIA Corporation shares touched a record high of 240.098. U.S. StocksAt the close, the Dow Jones Industrial Average rose 91.30 points, or 0.18%, to 51,268.26; the S&P 500 rose 51.27 points, or 0.66%, to 7,773.99; the Nasdaq Composite rose 286.45 points, or 1.05%, to 27,477.31. NVIDIA Corporation (NVDA.US) rose 2%, Novavax, Inc. (NVAX.US) rose 20%, Qualcomm (QCOM.US) fell 2%, and SpaceX (SPCX.US) rose more than 7%. The Nasdaq Golden Dragon China Index closed up 1.7%, with Alibaba Group Holding Limited Sponsored ADR (BABA.US) up 4%. European StocksEuropean stocks were mixed, with the pan-European Stoxx 600 closing up about 0.4%, while France's CAC 40 fell 0.8%. Fiscal concerns continued to weigh on the French market. Asia-Pacific StocksJapan's Nikkei 225 rose 2.4%, and Indonesia's composite index rose 1.36%. ForexThe U.S. dollar index, which measures the greenback against six major currencies, rose 0.23% on the day to close at 102.167. At the close of New York trading, the euro traded at 1.1215 dollars, down from 1.1252 dollars the previous session; the pound traded at 1.3219 dollars, down from 1.3239 dollars the previous session. The dollar traded at 158.00 yen, up from 157.80 yen the previous session; the dollar traded at 0.8307 Swiss francs, up from 0.8287 Swiss francs the previous session; the dollar traded at 1.4256 Canadian dollars, down from 1.4259 Canadian dollars the previous session; the dollar traded at 10.0403 Swedish kronor, up from 10.0366 Swedish kronor the previous session. CryptocurrenciesBitcoin came close to 87,000 dollars at one point and was at 85,925 dollars as of publication; Ethereum fell 0.54% to 2,715 dollars. Precious MetalsSpot gold was at 4,141.17 dollars per ounce; spot silver was at 61.1 dollars per ounce. Crude OilLight crude futures for November delivery on the New York Mercantile Exchange fell 1.68 dollars to close at 89.43 dollars per barrel, a decline of 1.84%; London Brent crude futures for December delivery fell 1.93 dollars to close at 100.32 dollars per barrel, a decline of 1.89%. Macro News Trump administration said to plan easing restrictions on tax-exempt diesel use to lower fuel costs. U.S. President Donald Trump is preparing to ease restrictions on the use of a tax-exempt grade of diesel, his latest move to lower the cost of this key fuel ahead of the November midterm elections. People familiar with the matter said the Trump administration is expected to announce a plan on Monday for so-called "red-dyed diesel," which would allow broader use of red-dyed, or dyed, diesel. This type of diesel is typically used for off-road purposes. Because red-dyed diesel is exempt from the 24-cent-per-gallon federal excise tax, any measure expanding its use including allowing it in road vehicles is expected to translate quickly into lower retail prices. Diesel prices have risen sharply as wars in Russia and the Middle East have weakened refining capacity and reduced global shipments of petroleum products. According to AAA data, the average U.S. retail diesel price was 6.32 dollars per gallon as of Sunday. Although that is below last month's record high, farmers, truckers and other users are still paying far more than before. When the United States and Israel attacked Iran in February, diesel prices were only 3.76 dollars per gallon. U.S. business activity accelerates to fastest in more than five years, with strong growth accompanied by rising inflation. Chris Williamson, chief business economist at S&P Global, Inc. Market Intelligence, said: "U.S. business activity grew in September at the fastest pace in more than five years, with rising demand and improved business confidence driving companies to expand output at the fastest rate in over five years. Combined with an equally solid manufacturing PMI, the strong services expansion implies U.S. economic growth of around 4% in the third quarter. The further acceleration in September also signals strengthening momentum at the start of the fourth quarter. Tech companies reported the fastest growth in nearly four years, indicating the AI boom is boosting large technology firms. Other sectors were also encouraged, with consumer-facing companies as well as industries such as healthcare, alcohol, real estate and financial services all reporting faster growth. However, concerns are mounting that signs of overheating in the economy are becoming increasingly evident. Companies' input costs accelerated, driven by higher services prices. Input cost inflation rose in September to its highest level in nearly four years. At the same time, higher fuel prices added to cost pressures, and firms' selling prices rose further, suggesting inflation may remain above the Federal Reserve's 2% target." Media: Private credit concerns prompt Fed review of large banks. According to reports, the New York Fed has begun visiting large banks to examine their lending to private credit firms and to understand their exposure to a part of the financial industry that is worrying investors and global policymakers. People familiar with the situation said Fed officials have visited JPMorgan, Wells Fargo & Company, Barclays and Morgan Stanley since the spring to ask about overall exposure, risk management and collateral quality. The review was prompted in part by JPMorgan's move in March to write down a large number of loans in its private credit portfolio, especially loans to software companies threatened by artificial intelligence, the people said. The Fed has completed reviews of some banks, including JPMorgan, the people said. It is not unusual for the Fed to examine banks' holdings in depth, especially when the media frequently reports on their potential risks. The Fed also conducts regular on-site assessments and continuously monitors banks' risk profiles. Raw sugar futures hit nearly two-year high as concerns grow over tightening global supply. Raw sugar futures extended gains as weather and production worries in major sugar-producing countries intensified and concerns about tighter global supply mounted. The most-active raw sugar contract in New York rose as much as 2%, reaching its highest level since December 17, 2024, extending last week's gain of nearly 8%. White sugar futures also rose. The El Nio weather pattern is fueling supply concerns across the Shenzhen Agricultural Power Group market, and sugar crops are expected to be among the first to be affected. At the start of the year, the market widely expected a global sugar surplus, but weather risks are changing that expectation. Chris Beauchamp, chief market analyst at investing and trading platform IG, said: "Weather concerns are driving the recent rise in sugar prices, and sugar prices may further test the August high." Excessive rain in Brazil, the world's largest sugar producer, has slowed sugarcane harvesting and crushing. India, the world's second-largest producer, has been hit by its weakest monsoon since 2015 and is expected to see lower sugar output. In Europe, the European Union's agricultural resource monitoring service expects sugar beet yields to be below the five-year average. Normally, a decline in one region can be offset by higher output elsewhere, but if multiple major producers face unfavorable weather at the same time, that supply buffer may be weakened. Individual Stock News NVIDIA Corporation shares hit a new high for the first time in months; analyst says there are still reasons for further gains. As NVIDIA Corporation (NVDA.US) shares hit a record high for the first time in four months, analysts are optimistic about the future. The stock closed at 237.58 dollars on Monday, a record high, giving the company a market value of about 5.76 trillion dollars. Wedbush analyst Matt Bryson said that as NVIDIA Corporation gets closer to meeting future financial expectations, "it is becoming increasingly difficult for the market to ignore" the disconnect between its growth prospects and valuation. He noted that the company is expected to grow at 70%, yet the stock trades at less than 20 times expected earnings per share for the next fiscal year, making it look relatively cheap. Despite competition from peers and even its own customers, NVIDIA Corporation remains "a cornerstone of AI infrastructure," BNP Paribas analyst Karl Ackerman wrote in a report last week. He raised his target price for the stock to 345 dollars per share, implying 45% upside from Monday's price. Wall Street syndicate launches record 60 billion dollars AI financing deal. According to reports, Bank of America Corp, Citigroup and Morgan Stanley have begun distributing a 60 billion dollars debt financing package to other banks to support Anthropic's leasing of Alphabet Inc. Class C (GOOG.US) AI chips, the largest chip financing transaction to date. About 42 billion dollars of that is senior secured loans backed by Broadcom Inc. (AVGO.US), which began syndication on Monday; another 18 billion dollars of subordinated debt not guaranteed by Broadcom Inc. is expected to be launched later, with Blackstone already committed to providing about 9 billion dollars of that. The proceeds will be used for Anthropic's 2027 chip orders, with lease payments beginning after the chips are delivered. Broadcom Inc. may also receive up to 42 billion dollars in convertible notes from Anthropic to pay related leasing costs. The 60 billion dollars financing is seen as an important transaction testing market demand for AI debt. Major Bank Ratings Melius Research: Upgrades Microsoft Corporation (MSFT.US) to "Buy" and raises its target price from 465 dollars to 665 dollars.