ADDX GO Market Morning Wrap - 17th Oct
Stock Market
On Thursday Eastern Time, the three major US stock indices closed lower, as concerns over regional bank loan issues unsettled investors, compounding pressure from ongoing trade tensions.
Major tech stocks broadly declined, with Tesla down 1.47%, Meta down 0.76%, Apple down 0.76%, Amazon down 0.51%, Microsoft down 0.35%, Google A up 0.17%, and Nvidia up 1.10%.
Spot gold broke through $4,300/oz, hitting a new record high, with precious metals stocks leading gains: Newmont rose 5%, Harmony Gold rose 3.5%, and Coeur Mining rose 3.7%.
Zions Bancorporation plummeted 13% after disclosing unexpected losses on two loans in its California division. This news heightened market fears of potential credit stress in the banking system, especially amid an uncertain economic outlook and elevated interest rates.
Western Alliance fell 10.8% after filing a fraud lawsuit against a borrower. Since the September collapse of auto parts supplier First Brands and auto dealer Tricolor, market tensions over commercial loan risks have been simmering.
The market is highly sensitive to credit-related losses, and investors were unsettled by these regional banks’ disclosures, leading to declines in most small-cap financials and bank stocks today.
The VIX, Wall Street’s “fear gauge,” surged to close at 25.31, its highest since April 24.
LNW Chief Investment Officer Ron Albahary said: “Any yellow warning flags in the credit market should not be ignored. If you’ve been in this market long enough, you know to stay cautious.”
Investors are also closely monitoring the latest trade developments. Bank of America investment strategist Tom Hainlin commented: “Heightened uncertainty in global trade dynamics and its potential impact on the economy and markets is clearly adding to market instability.”
Fueled by AI optimism and Fed rate cut expectations, US stocks have hit multiple record highs this year. Robust earnings from major US banks this week show economic resilience despite delayed official macro data due to the government shutdown.
Data shows analysts expect S&P 500 companies’ Q3 earnings to grow 9.2% YoY, up from an 8.8% forecast two weeks ago.
Investors are also closely watching the US government shutdown, now in its third week, which has indefinitely delayed key economic data releases from federal agencies.
Global Hotspots
Russia-US Presidential Call Concludes, Trump to Meet Putin in Budapest
On October 16, President Trump posted on his social platform Truth Social that he had a highly productive call with Russian President Putin. Trump said he remains committed to resolving the Ukraine conflict, with much of the discussion focused on post-conflict Russia-US trade issues.
He announced that Secretary of State Rubio will represent the US at an upcoming meeting with Russia, with the venue and delegation yet to be finalized. Trump added that he will meet Putin in Budapest, Hungary, after an advisors’ meeting to discuss ending the Russia-Ukraine conflict.
Government Shutdown Persists, US Senate Rejects Temporary Funding Bill for 10th Time
On October 16, the US Senate failed again to advance a Republican temporary funding bill, with a 51-45 vote falling short of the 60 votes needed to fund the government through late November. This marks the 10th consecutive rejection of the bill in the past two weeks amid the ongoing government shutdown.
US Credit Crisis Fears Rise, Bank Stocks Lose Over $100 Billion in Market Value
Compared to the collapses of First Brands Group and Tricolor Holdings, the losses disclosed by regional lenders Zions Bancorporation and Western Alliance are smaller, in the tens of millions rather than billions. However, successive loan fraud cases have reignited Wall Street debates: will the era of laissez-faire capital cost both banks and non-bank institutions?
In the Zions and Western Alliance cases, the alleged perpetrators are linked to investment funds tied to Andrew Stupin and Gerald Marcil, which borrowed to purchase distressed commercial mortgages.
These disclosures, combined with recent loan failures, including Tricolor Holdings’ bankruptcy last month (rendering some debts nearly worthless) and First Brands Group’s collapse (owing Wall Street’s largest institutions over $10 billion), led to a sharp market reaction: on Thursday, the market value of the 74 largest US banks dropped by over $100 billion.
Company News
Apple Reportedly Plans to Launch Touchscreen Mac with M6 Chip
Apple insider Mark Gurman reported Thursday that Apple is preparing to launch its first touchscreen Mac, marking a departure from the design stance held since Steve Jobs’ era. Apple’s stock narrowed losses during Thursday’s session following the news.
Sources say the tech giant plans to release a new MacBook Pro with a touchscreen as early as late 2026 or early 2027, with internal codenames K114 and K116. The new model will be thinner and feature the next-gen M6 chip. It will also use OLED displays, the same technology as iPhone and iPad Pro, marking the first time Mac adopts this premium, lightweight display.$AAPL
Microsoft Announces Major Windows 11 Upgrade, Copilot to “Operate PCs Directly”
Microsoft announced Thursday on its official blog that it is testing AI features in the latest Windows 11 OS to entice users to upgrade their PCs. Microsoft EVP and Consumer CMO Yusuf Mehdi wrote on X: “We’re entering a new era—AI is integrated into tools people use daily.”
He added, “With today’s update, every Windows 11 PC will become a Copilot-centric AI PC, ready to help you think, create, and act. It all starts with ‘Hey, Copilot.’”$MSFT
Lyft Plans New Tech Hub in Downtown Toronto by Late Next Year
US ride-hailing company Lyft announced plans to open a new tech hub in downtown Toronto by the second half of next year, its second-largest tech hub after San Francisco.
Lyft said the office, located in Toronto’s financial district, will house hundreds of employees in engineering, product development, operations, and marketing as the company expands in Canada.$LYFT
Forex & Commodities
COMEX gold futures surged 3.4% to $4,344.3/oz, and COMEX silver futures rose 3.99% to $53.43/oz, both hitting new closing highs.
WTI crude futures fell 1.36% to $57.46/barrel. Brent crude futures dropped 1.37% to $61.06/barrel.
At the New York close, the dollar index fell 0.31% to 98.36, with most non-US currencies rising.
Key Events
Agency: Gold’s Financial Attributes to Further Support Price Gains
On October 16, spot gold rose 1.49% to $4,270.52/oz, hitting a new record high.
Zheshang Securities believes: 1) Short-term: Most metals are rising amid ample liquidity, and gold’s financial attributes will further support price gains. 2) Mid-term: If sentiment shifts, gold is a strong safe haven. If other metals’ trends reverse, gold’s safe-haven value will shine, benefiting prices. 3) Long-term: Declining dollar credit is the main narrative of this gold bull market, and with new Trump administration policies, dollar credit may continue to weaken.
Cryptocurrency
Bitcoin fell 1.60% in 24 hours to $108,669.
Ethereum (ETH-USD) dropped 1.62% to $3,918.59.
XRP (XRP-USD) fell 3.07%, BNB (BNB-USD) declined 1.41%, and Solana (SOL-USD) dropped 4.16%.
Dogecoin (DOGE-USD) fell 3.33%, and Cardano (ADA-USD) declined 2.87%.
Key Events
Florida Plans to Include Bitcoin in Investment Toolkit
Florida lawmakers kicked off the 2026 legislative session, aiming to include Bitcoin in the state’s investment toolkit.
House Bill 183 (HB183) would allow the state’s CFO to invest up to 10% of certain public funds (including the General Revenue Fund, Budget Stabilization Fund, and various trust funds) in digital assets and exchange-traded products.
If passed, the bill would also authorize the State Board of Administration to invest up to 10% of the Florida Retirement System’s trust fund in digital assets.