Tonight's Highlights: Oil Retreat Eases Bond Pressure; U.S. Futures Fall as Markets Await Bessent Briefing

U.S. stock index futures moved lower on Monday, led by declines in Nasdaq 100 futures. Major European benchmarks traded broadly lower.

 

Rising global sovereign bond yields continue to weigh on equity valuations.

 

The 30-year U.S. Treasury yield topped 5.3% last week, touching levels not seen in nearly two decades, while long-term benchmark yields in Japan, France, and Germany also hovered near multi-year highs.

 

Investors remain cautious that extended U.S.-Iran friction could keep crude prices elevated, adding upward pressure to global inflation trajectories.

 

U.S. Treasury Secretary Scott Bessent stated last week that the department plans to at least double the size of its government bond buybacks in the coming months, noting that actual execution volumes could exceed the previously announced $4 billion.

 

While the announcement initially provided relief to the long end of the Treasury curve, the positive impact proved relatively short-lived.

 

Bessent is scheduled to hold a press conference at 2:00 PM Eastern Time on Monday to outline the administration's planned "economic D-Day" targeting Iran.

 

International oil prices declined on Monday, with Brent crude futures shedding over 1% to trade near $91.40 per barrel.

 

The retreat in crude provided modest relief to the sovereign debt market: the 10-year Treasury yield slipped 4 basis points to 4.70%, while the 30-year yield fell 4 basis points to 5.23%.

 

Traders face a heavy slate of market catalysts later this week.

 

Nvidia will release quarterly earnings after the closing bell on Wednesday, Fed Chair Kevin Warsh is scheduled to speak at the Jackson Hole Economic Symposium on Friday, and the Fed's preferred inflation gauge—the July PCE price index—will cross the wires on Wednesday.

Company News

Nvidia Customers Reportedly Notified of 15%+ Server Price Increases

 

Several of Nvidia’s largest enterprise customers have been notified that servers powered by Nvidia AI accelerators will see price increases exceeding 15%, driven by surging memory chip costs.

 

People familiar with the matter indicated that the price hikes will apply to server systems scheduled for delivery early next year, including hardware powered by flagship Vera Rubin and Grace Blackwell platforms. Exact increases will depend on silicon generation and total memory configurations.

 

Server ODMs assembling hardware for hyperscalers such as Microsoft, Google, and Oracle recently notified customers of the updated pricing terms.

 

SoftBank to Issue Record ~$6.3B in Japanese Retail Bonds for OpenAI Investment

 

SoftBank Group filed documents on August 24 detailing plans to issue a record ¥1 trillion (approximately $6.3 billion) in retail bonds in Japan to fund its investment commitments to OpenAI.

 

The seven-year bonds are slated for pricing on September 4, with an indicated coupon range of 4.3% to 4.9%.

 

Nvidia in Talks to Back Perplexity in Multi-Billion-Dollar Round Valued Above $30B

 

Nvidia is in discussions to participate in an equity financing round for AI startup Perplexity, according to people familiar with the transaction.

 

The financing could reach several billion dollars, boosting Perplexity’s valuation by more than 50% year-over-year to exceed $30 billion.

 

Nvidia had previously explored multi-billion-dollar IP licensing arrangements alongside select talent acquisitions from Perplexity.