1. Asia-Pacific markets trade mixed as China manufacturing contracts for a sixth straight month
Asia-Pacific markets traded mixed Tuesday as China’s official reading showed manufacturing activity contracted for a sixth straight month, albeit less than market estimates. The Manufacturing Purchasing Managers’ Index came in at 49.8, data from the National Bureau of Statistics showed, compared with expectations for 49.6. While still in contraction, the latest reading was the strongest since March. Mainland China’s CSI 300 was flat at the open. Australia’s S&P/ASX 200 was little changed. Japan’s Nikkei 225 fell 0.1% and Topix traded flat. South Korea’s Kospi also traded flat, while the Kosdaq fell 0.34%.
2. S&P 500 closes higher as AI leader Nvidia rebounds, EA surges on takeover
The S&P 500 rose on Monday as Wall Street regained some of its footing after a week in which the artificial intelligence trade lost a bit of steam. The broad market index climbed 0.26% to finish at 6,661.21, and the Nasdaq Composite advanced 0.48% to close at 22,591.15. The Dow Jones Industrial Average settled up 68.78 points, or 0.15%, at 46,316.07. AI chip darling Nvidia saw gains after scepticism around the AI trade put pressure on the broader stock market last week. Some traders even questioned whether there was enough energy to power an infrastructure plan between Nvidia and OpenAI.
3. Gold hits record high on rate-cut bets, US government shutdown fears
Gold prices surged past $3,800 an ounce for the first time on Monday, setting a new record as investors flocked to the safe-haven asset on U.S. rate cut expectations, fears of a potential government shutdown and escalating geopolitical tensions. Spot gold was up 1.9% at $3,829.63 per ounce, after hitting a record high of $3,833.37 earlier in the session. U.S. gold futures for December delivery settled 1.2% higher at $3,855.2. The U.S. dollar index fell 0.2%, making greenback-priced bullion less expensive for overseas buyers. U.S. President Donald Trump is scheduled to meet with top congressional leaders from both parties later on Monday to negotiate an extension of government funding. Without a deal, a federal shutdown would begin on Wednesday.
4. Oil prices drop about 3% on expected global supply growth
Oil prices fell about 3% on Monday after Iraq’s Kurdistan region resumed crude oil exports via Turkey over the weekend and as OPEC+ plans another oil output hike in November, adding to global supplies. Brent crude futures fell $2.16, or 3.08%, to close at $67.97 a barrel after settling at the highest since July 31 on Friday. U.S. West Texas Intermediate crude settled at $63.45 a barrel, down $2.27, or 3.45%. Crude oil flowed on Saturday through a pipeline from the semi-autonomous Kurdistan region in northern Iraq to Turkey for the first time in 2-1/2 years, after an interim deal broke a deadlock, Iraq’s oil ministry said. The agreement between Iraq’s federal government, the Kurdistan regional government (KRG) and foreign oil producers operating in the region will allow 180,000 to 190,000 barrels per day of crude to flow to Turkey’s Ceyhan port, Iraq’s oil minister told Kurdish broadcaster Rudaw on Friday.
5. Trump details plan to end Israel war with Hamas in Gaza
The White House on Monday released a 20-point plan by President Donald Trump to end the war in Gaza between Israel and Hamas. The release came minutes before Trump began speaking at the White House about the proposal, which has not been agreed to by Hamas. Trump was joined by Israeli Prime Minister Benjamin Netanyahu. Trump said that Israel and other nations have accepted the outline he detailed. “If accepted by Hamas, this proposal calls for the release of all remaining hostages, immediately, but in no case more than 72 hours,” Trump said. That provision would require all dead and living hostages to be released by Hamas. “I hope that we’re going to have a deal for peace, and if Hamas rejects the deal, which is always possible, they’re the only one left,” Trump said.
6. ‘We’re headed to a shutdown,’ Vance says after Trump meeting with leaders ends
A looming federal government shutdown appeared even more likely after top Democrats and Republicans met with President Donald Trump at the White House on Monday. “I think we’re headed to a shutdown because the Democrats won’t do the right thing,” Vice President JD Vance told reporters after the meeting, which came less than two days before the shutdown will begin in the absence of a funding deal. The Democratic participants, House Minority Leader Hakeem Jeffries and Senate Minority Leader Chuck Schumer, likewise suggested that the two sides remain far apart. “We have very large differences,” Schumer said after the meeting. But he added that he believes Trump heard Democrats’ objections “for the first time,” suggesting the face-to-face was at least partially constructive. Both sides continued to assert that the other would be to blame if the government does shut down starting Wednesday.
7. Trump says US to impose 100% tariff on movies made outside the country
President Donald Trump on Monday said he would impose a 100% tariff on foreign-made films and slap “substantial Tariffs” on any country that does not make furniture in the United States. Trump’s statements left key questions about the plans unanswered. In a pair of Truth Social posts, Trump claimed that California’s movie-making business and North Carolina’s furniture industry have been lost to other countries, and that the new duties on imports would reverse the slide. “Our movie making business has been stolen from the United States of America, by other Countries, just like stealing ‘candy from a baby,’” Trump wrote. “Therefore, in order to solve this long-time, never-ending problem, I will be imposing a 100% Tariff on any and all movies that are made outside of the United States.”
8. Labor Dept. won’t release Friday’s key jobs report, other data if government shuts down
The Labour Department is preparing for what would amount to a news and data blackout should the U.S. government suspend operations. In a contingency plan released Friday, the department said it was looking “to ensure that DOL agencies can perform an orderly suspension of programs and operations should a lapse occur, while continuing those limited activities authorized to continue during a lapse.” While the department’s scope covers a multitude of areas, the impact on data releases will be pressing for investors. The DOL, in conjunction with the Bureau of Labour Statistics, has several key reports upcoming that will provide important clues about the direction of the economy and inform Federal Reserve policymakers ahead of their next meeting in October.
9. China manufacturing activity picks up in September — official PMI still in contraction
China’s official gauge for manufacturing activity showed a smaller-than-expected contraction in September as Beijing intensified its efforts aimed at curbing industrial overcapacity amid sluggish domestic demand and global trade disruptions. The Manufacturing Purchasing Managers’ Index came in at 49.8, data from the National Bureau of Statistics showed, compared with expectations for 49.6, according to a Reuters poll. That reading, while still in contraction, was the strongest since March. China’s official manufacturing PMI has stayed below the 50-benchmark separating growth from contraction since April as manufacturers have grappled with tepid domestic demand, exacerbated by higher U.S. tariffs that have hit Beijing’s exports to the world’s largest consumer market.
10. Trump sets 10% tariff on lumber imports, higher rates on wooden products
U.S. President Donald Trump said on Monday he was slapping 10% tariffs on imported timber and lumber and 25% duties on imported kitchen cabinets, bathroom vanities and upholstered furniture, with the rate on the latter categories to jump next year. Trump signed a presidential proclamation laying out his argument that timber, lumber and furniture imports are eroding U.S. national security to justify the new duties under Section 232 of the Trade Act of 1974. The proclamation said the tariff rates would start on October 14, but added that duties will increase on January 1 to 30% for upholstered wooden products and to 50% for kitchen cabinets and vanities imported from countries that fail to reach an agreement with the United States.
11. Trump administration scraps Biden gun export restrictions
The administration of U.S. President Donald Trump on Monday rescinded Biden-era restrictions on civilian firearms exports, eliminating rules against sales to 36 countries deemed high-risk for the weapons being diverted to criminals and terrorists. The Commerce Department’s Bureau of Industry and Security said the move will restore export rules that existed under Trump’s first term and create “hundreds of millions of dollars per year in export opportunities” for U.S. gun manufacturers. The Biden administration imposed the restrictions in April 2024 after a temporary export pause, with then-Commerce Secretary Gina Raimondo saying the rules would limit diversions of guns to drug cartels, criminal groups and gangs. The restrictions were expected to reduce average annual U.S. firearms exports by 7% or $40 million.
12. The Trade Desk stock surges on Audience Unlimited data marketplace plans
The Trade Desk stock surged 6.9% Monday after the advertising technology company announced plans to launch Audience Unlimited, a major upgrade to its third-party data marketplace. The new platform aims to transform how advertisers utilize third-party data by removing cost barriers and complexity. Audience Unlimited will leverage AI to score data segments by relevance across thousands of curated segments from hundreds of data providers, allowing advertisers to add relevant data sources to campaigns at a significantly lower cost than traditional pricing models. The company will also introduce new Koa Adaptive Trading Modes, giving advertisers flexibility to adapt their Kokai platform usage based on campaign strategy.
13. Etsy pops 16% as OpenAI announces ChatGPT Instant Checkout for the shopping site
OpenAI on Monday announced Instant Checkout, a new feature that allows users to buy products through its artificial intelligence chatbot ChatGPT. Instant Checkout initially supports single-item purchases directly from U.S. Etsy sellers, and it’s available to U.S. ChatGPT Plus, Pro and Free users. OpenAI said more than one million Shopify merchants, including Skims and Glossier, are coming soon. Shares of Etsy closed up nearly 16% on Monday. Shopify’s stock closed up more than 6%. OpenAI will take a fee from transactions that are completed through ChatGPT, which means Instant Checkout could become an important new revenue stream for the startup.
14. Beyond Meat stock sinks to all-time low after it launches convertible debt exchange offer
Shares of Beyond Meat slumped to a record low on Monday after the maker of plant-based meat launched an exchange offer for convertible bonds to cut more than $800 million in debt. The stock was last down 32.1% at $1.93, after falling as low as $1.23. The company last month posted a revenue drop and a wider-than-expected loss, citing weak U.S. consumer demand. It said it was still facing “an elevated level of uncertainty” and will not provide any full-year estimates. Consumer spending has been affected by economic uncertainty and consumer tastes have been shifting in the plant-based meat market.
15. Carnival raises annual profit forecast on resilient cruise demand, high costs loom
Carnival Corp raised its annual profit forecast on Monday, leaning on strong demand and higher ticket prices for its cruise vacations to offset mounting costs. The cruise operator has been investing heavily to offer more unique and private experiences by expanding its portfolio to meet strong demand for exclusive destinations. These included a $600 million investment in Celebration Key, an ambitious private resort destination on Grand Bahama, to help maintain its competitive edge. Bundled packages, perks such as drinks, Wi-Fi, and excursions have encouraged guests to spend more onboard, further boosting the company’s revenue. However, cruise operators are grappling with higher fuel costs and expenses related to dry docking of ships for maintenance.