Dear Friends,
Tangents:
Carolann is away from the office attending the Bloomberg Screentime 2025 Conference. I will be writing the newsletter on her behalf.
On Oct. 7, 1806 Carbon paper patented in London by inventor Ralph Wedgwood
On Oct. 7, 1907 Henri Farman of France flies 30 meters in a Voisin biplane
On Oct. 7, 1909 British Security Service, commonly known as MI5 (Military Intelligence, Section 5), is formed as part of the Secret Service Bureau
On Oct. 7, 1919 KLM (Koninklijke Luchtvaart Maatschappij), Royal Dutch Airlines, is founded in Amsterdam, making it one of the world’s oldest airlines
On Oct. 7, 1928 Paavo Nurmi runs a world record 10 miles (50:15.0)
On Oct. 7, 2008 The Federal Reserve annouced a radical plan to buy massive amounts of short-term debt, known as commercial paper, to get credit markets moving again. Go to article
Interstellar comet 3I/ATLAS may come from the mysterious frontier of the early Milky Way, new study hints
The interstellar comet 3I/ATLAS does not come from our corner of the Milky Way, and may be a time capsule of the early galaxy, new research into its trajectory hints.
Leopards ate our ancient human ancestors’ faces, AI analysis reveals
A study provides insight into the demise of two prehistoric individuals of the now-extinct human species Homo habilis.
Deadly mamba snakebites stop muscles from working — but sometimes, antivenom can send them into overdrive
Some victims of venomous mamba snakebites see their symptoms worsen after getting antivenom, displaying a different type of paralysis. A new study explores why.
Unique gene variants in the Turkana people of Kenya may help them survive harsh desert heat
Scientists discovered genetic variants in the Turkana that help conserve water in deserts, but these variants may now raise disease risks in urban settings, early data suggest.
Nobel Prize in physics goes to three scientists who discovered bizarre quantum effect on large scales
The 2025 Nobel Prize in Physics has been awarded to John Clarke, Michel H. Devoret and John M. Martinis “for the discovery of macroscopic quantum mechanical tunnelling and energy quantisation in an electric circuit.”
Far Side of the Moon Revealed
In 1959 Far side of the Moon is seen for the first time courtesy of the USSR’s Luna 3 space probe
A monstrous tornado
The rarest and most extreme form of tornado struck eastern North Dakota in June, and experts have now determined how strong it really was.
New details of Ernest Shackleton’s sunken Endurance ship
A broken rudder wasn’t what doomed the Endurance, new analysis suggests.
Niels Bohr, mathematician, b. 1885 🧪
Desmond Tutu, b. 1931 ✝️
Vladimir Putin, b. 1952 🇷🇺
Yo-Yo Ma, b. 1955 🎻
PHOTOS OF THE DAY
New Mexico, US
‘Storm clouds and a rainbow in Santa Fe. There was a brilliant light show before a good and much-needed soaking.’
Photograph: Mary Anne Wisnewski
Dresden, Germany
‘This is the International Congress Center at dusk. I was on my way to take a photo of the cityscape from the Marienbrücke when I happened on this beautiful architecture.’
Photograph: Harvey Wasserman
Seville, Spain
Metropol Parasol, the world’s largest wooden structure.
Photograph: Francisco Garcia
Market Closes for October 7th , 2025
| Market Index |
Close | Change |
| Dow Jones |
46602.98 | -91.99 |
| -0.20% | ||
| S&P 500 | 6714.59 | -25.69 |
| -0.38% | ||
| NASDAQ | 22788.36 | -153.31 |
| -0.67% | ||
| TSX | 30351.72 | -180.16 |
| -0.59% |
International Markets
| Market Index |
Close | Change |
| NIKKEI | 47950.88 | +6.12 |
| +0.01% | ||
| HANG SENG |
26957.77 | -183.15 |
| -0.67% | ||
| SENSEX | 81926.75 | +136.63 |
| +0.17% | ||
| FTSE 100* | 9483.58 | +4.44 |
| +0.05% |
Bonds
| Bonds | % Yield | Previous % Yield |
| CND. 10 Year Bond |
3.183 | 3.213 |
| CND. 30 Year Bond |
3.703 | 3.715 |
| U.S. 10 Year Bond |
4.1230 | 4.1540 |
| U.S. 30 Year Bond |
4.7231 | 4.7526 |
Currencies
| BOC Close | Today | Previous |
| Canadian $ | 0.7169 | 0.7168 |
| US $ |
1.3948 | 1.3950 |
| Euro Rate 1 Euro= |
Inverse | |
| Canadian $ | 1.6268 | 0.6147 |
| US $ |
1.1660 | 0.8576 |
Commodities
| Gold | Close | Previous |
| London Gold Fix |
3949.45 | 3885.70 |
| Oil | ||
| WTI Crude Future | 61.73 | 61.69 |
Market Commentary:
On this day in 1896, the Dow Jones Industrial Average began continuous daily publication. Its 12 members were the great industrial giants of the time: American Cotton Oil, American Sugar, American Tobacco, Chicago Gas, American Spirits Manufacturing, General Electric, Laclede Gas, National Lead, U.S. Cordage, Tennessee Coal & Iron, U.S. Leather, and U.S. Rubber.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 0.6% at 30,351.72 in Toronto.
The move was the biggest since falling 0.9% on Aug.
1 and follows the previous session’s increase of 0.2%.
Today, materials stocks led the market lower, as 6 of 11 sectors lost; 142 of 214 shares fell, while 67 rose.
Shopify Inc. contributed the most to the index decline, decreasing 1.9%.
Secure Waste Infrastructure Corp. had the largest drop, falling 7.8%.
Insights
* This year, the index rose 23%, heading for the best year in at least 10 years
* The index advanced 26% in the past 52 weeks. The MSCI AC Americas Index gained 18% in the same period
* The S&P/TSX Composite is 1.1% below its 52-week high on Oct. 6, 2025 and 36.5% above its low on April 7, 2025
* The S&P/TSX Composite is up 1.1% in the past 5 days and rose 4.5% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 21.5 on a trailing basis and 18.9 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.4% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$4.87t
* 30-day price volatility rose to 6.79% compared with 6.37% in the previous session and the average of 7.58% over the past month
Index Points
Materials | -73.3754| -1.4| 10/41
Information Technology | -45.5377| -1.4| 2/7
Financials | -44.8806| -0.5| 6/16
Consumer Discretionary | -15.7069| -1.6| 1/8
Industrials | -13.7425| -0.4| 8/21
Real Estate | -4.0604| -0.8| 1/16
Health Care | 0.1470| 0.2| 2/2
Consumer Staples | 1.7734| 0.2| 3/8
Communication Services | 3.2239| 0.5| 2/3
Utilities | 4.2717| 0.4| 9/5
Energy | 7.7284| 0.2| 23/15
Shopify | -37.6600| -1.9| -39.9| 47.1
Agnico Eagle Mines Ltd | -19.7300| -2.4| -46.8| 106.4
RBC | -13.9400| -0.7| 15.3| 17.5
WSP Global | 3.5540| 1.4| -0.9| 9.9
Cameco | 5.1980| 1.4| -7.0| 63.3
Canadian Natural | Resources | 6.4180| 1.0| -30.3| 3.0
(MT Newswires)
(Adds commentary from representative of Canadian team after White House meetings from paragraph 7 to 13.)
After six consecutive days of record closes, the Toronto Stock Exchange fell Tuesday on some profit taking and on investor nerves around Canada’s chances of bringing a trade war with the United States to an end, and at what cost if it does.
The S&P/TSX Composite Index closed down 180.16 points, or 0.6%, to 30,351.72 with sectors mixed, and none of them falling or rising by as much as 1%.
On the trade front, Prime Minister Mark Carney on Tuesday told U.S. President Donald Trump that Canada is the U.S.’s largest foreign investor, investing half of a $1 trillion over the last five years, and “probably $1 trillion in the next five years, if we get the agreement that we expect to get”, according to a transcript read on Canada’s CBC TV related to commentary from the Canadian Prime Minister during his trade talks at the White House.
Carney’s comments created a stir as to what exactly was meant.
Pierre Poilievre, the leader of the opposition Conservatives, latched on to this confusion during Question Time in parliament back in Ottawa.
According to one reporter on CBC TV, Carney appeared to be talking about private sector rather than government investment in the U.S., but Poilievre saw it as meaning companies and private sector entities will actually move to the United States.
All of this comes as Canada’s deficit in goods trade ballooned to $6.3 billion in August, from a revised $3.8 billion in the prior month and not far from the widest point recorded in April.
Canada-U.S. Trade Minister Dominic LeBlanc briefed the media at 4:00 p.m. ET, and market watchers were looking for him to clear up matters as to what exactly Carney and Trump spoke about and what, if any, agreements have been struck during their meeting.
According to LeBlanc, the Canadian team had a “successful, positive, substantive conversation” with their U.S. counterparts on trade and international issues.
He said the conversation was “more detailed” than at previous meetings, with President Trump “very engaged”.
LeBlanc added talks will continue to “quickly land deals” that will bring “greater certainty” to areas such as steel, aluminum and energy.
MT Newswires notes the auto sector was not included among the areas cited.
Also, LeBlanc confirmed PM Carney did talk about substantial investments by private corporations and institutional investors, such as pension funds that have already massively invested in the U.S. economy to the tune of more than $500 billion.
“We believe over the next five years that could double,” he said.
LeBlanc said Carney spoke, for example, about how Canada can contribute more to the energy security of the U.S. through private corporations and institutions.
When asked were Canada and the U.S. headed towards a quota system in their trade dealings, LeBlanc said one needed to be careful drawing a straight line between the idea of having ‘formula’ for trade dealings, as President Trump alluded to today, and having ‘quotas’.
LeBlanc when asked has Canada joined the ‘Golden Dome’ defence system, said Canada wants to be a “constructive partner” as the Americans “elaborate” on the details, with talks ongoing.
Of commodities today, gold had continued its record run higher late afternoon on Tuesday as the precious metal rose above US$4,000 mark for the first time on strong demand.
Gold for December delivery was last seen up $27.30 to US$4,003.60 per ounce.
Also, West Texas Intermediate oil closed with a small gain, the third-straight day of gains as traders assess the risks of supply disruptions amid an over-supplied market.
WTI crude oil for November delivery closed up $0.04 to settle at $61.73 per barrel, while December Brent crude was last seen down $0.06 to $65.41.
US
By Rita Nazareth
(Bloomberg) — Wall Street traders sent stocks lower after a series of all-time highs spurred calls for a breather amid signs of buyer exhaustion. Bonds rose as a $58 billion Treasury sale drew solid demand.
The ebullience driven by artificial intelligence gave way to concerns about the rally being excessive after a $16 trillion surge in the S&P 500 from its April lows.
Tech giants dragged down the index amid a report that Oracle Corp.’s cloud margins are lower than many estimate.
Tesla Inc. sank over 4% after introducing new versions of its top-selling models priced at under $40,000.
Investor optimism has grown heated in recent months, with many investors seeming too busy chasing the upside to worry about risks like a US government shutdown and stretched valuations.
Goldman Sachs Group Inc.’s trading desk said last week bullish sentiment among clients was the highest since December.
A sentiment tracker compiled by Barclays Plc has been near a level that indicates exuberance.
A similar Bloomberg Intelligence measure went back to “manic” zone.
“A period of consolidation would not come as a surprise after such a strong recent run, but we believe the equity rally is underpinned by solid fundamentals that should continue to support the market,” said Ulrike Hoffmann-Burchardi at UBS Global Wealth Management.
The S&P 500 closed around 6,715.
Oracle slid 2.5%.
Dell Technologies Inc. climbed 3.5% after hiking estimates amid strong AI demand.
US 10-year yields dropped three basis points to 4.13%.
The dollar rose.
Traders also parsed remarks from Federal Reserve officials, with Governor Stephen Miran saying his expectations for a limited tariff impact on inflation mean the Fed can keep easing policy.
Fed Bank of Minneapolis President Neel Kashkari warned that any drastic rate cuts would risk stoking prices.
“Profit-taking risks have rapidly risen across markets, and are particularly elevated for Nasdaq, potentially hampering further upside,” said Citigroup’s Chris Montagu.
Craig Johnson at Piper Sandler says he remains optimistic, particularly with macro tailwinds lifting the stock market.
However, he believes there are subtle signs of diverging momentum that warrant vigilance, especially with over-extended stocks that have risen substantially in recent weeks.
“A brief consolidation or shallow pullback would be welcomed to set up better risk-reward opportunities,” he noted.
At Fundstrat Global Advisors, Mark Newton says “overbought conditions” are notoriously a poor reason to avoid owning US equities, as many investors realize that can likely persist and don’t have to specifically represent a reason for concern.
Yet “it’s important to pay attention and not become overly complacent.”
“Of course valuations are moving higher.
They usually do, especially after swift selloffs like the one we saw in April,” said Callie Cox at Ritholtz Wealth Management.
“Now, we need to see earnings and economic data follow through.”
Cox says price-to-earnings ratios pushing towards extremes should encourage investors to rebalance.
“There’s still a lot of hidden value – or selloff protection – out there that could keep you cushioned against AI disappointment,” she noted.
Some Wall Street pros note that having multiple large technology stocks surge by double-digits in quick succession could be a sign that valuations have become disconnected from underlying fundamentals.
The moves come amid growing chatter about a bubble forming around AI as key players pledge billions of dollars in deals with a cohort of companies making infrastructure for the technology.
As more money is spent, there’s mounting fear the trend will end in a crash the way it did 25 years ago following the dot-com euphoria.
Warnings that we’re seeing a repeat of the dot-com bubble are heard regularly, noted Louis Navellier at Navellier & Associates.
The big difference is that this time, the players are huge companies with huge balance sheets and existing cash flow, he said.
“If profitability takes longer than expected a few of the hardware suppliers will suffer operating losses,” Navellier added.
“Nevertheless, with the market so heavily weighted to companies that are all-in on the AI bet, any serious setbacks on the prospects of AI profitability will have a serious impact on market indexes in the short term.”
With that said, Navellier noted investors shouldn’t worry about a stock-market bubble, “since as long as the analyst community is raising earnings estimates and the Fed is cutting key interest rates, we can invest confidently in A-rated stocks.”
Meantime, Jamie Dimon said JPMorgan Chase & Co. spends $2 billion a year on developing AI technology, and saves about the same amount annually from the investment.
“We know that it’s got to billions of cost savings and I think it’s the tip of the iceberg,” the bank’s chief executive officer, who has consistently touted the opportunities offered by AI, told Bloomberg TV.
“There has been plenty of chatter regarding the lofty valuations in the equity market and need for a rationalization lower.
At issue isn’t whether stocks have gotten a bit ahead of themselves, rather how the financial system would respond to a sharp correction,” said Ian Lyngen and Vail Hartman at BMO Capital Markets.
The BMO strategists noted that Tuesday’s price action was by no means a massive downtrade, instead it was a pullback in the tech sector following the concerns regarding narrow profit margins on AI-related cloud server rentals.
“We’re by no means technology experts and will leave the process of evaluating the cloud server worries to those more qualified.
Our only takeaway was that the Treasury market is comfortable in the prevailing range and wobbles in equities provided a handy excuse to rally,” they concluded.
Corporate Highlights:
* Dell Technologies Inc. roughly doubled its growth estimates for sales and profit for the next two years, and said demand for artificial intelligence products will extend those higher projections at least through the 2030 fiscal year.
* International Business Machines Corp. announced a plan to integrate Anthropic’s artificial-intelligence technologies into its software solutions.
* Salesforce Inc. told customers that it won’t pay a ransom demand from a hacker who claimed to have stolen a large amount of client data and threatened to publish it, according to an email seen by Bloomberg News.
* Gambling stocks led by DraftKings Inc. and Flutter Entertainment Plc fell after the owner of the New York Stock Exchange announced plans to invest as much as $2 billion in Polymarket, a crypto-based betting platform.
* Ford Motor Co. faces months of disruptions to its business after a major fire at an aluminum plant in New York, the Wall Street Journal reported.
* Johnson & Johnson was told by a California jury to pay $966 million to the family of a deceased woman who blamed her cancer on life-long use of the company’s baby powder in the largest verdict for a single user in the 15-year litigation.
* CoreWeave Inc. Chief Executive Officer Michael Intrator pushed back on the idea of changing a $9 billion bid for Core Scientific Inc. after one of the acquisition target’s biggest investors said it was a lowball offer.
* Ethiopian Airlines has more than 100 planes on order with Boeing Co., but delivery delays are hampering expansion at Africa’s biggest carrier.
* Bank of New York Mellon Corp. is exploring tokenized deposits to enable clients to make payments using blockchain, as major banks across the world step up use of the technology underpinning digital assets to transfer funds.
* Rising investor appetite for digital infrastructure, energy and transportation assets boosted fundraising for Manulife Investment Management, which closed its largest-ever infrastructure fund with $5.5 billion.
* Mercedes-Benz Group AG’s China sales tumbled 27% in the third quarter to their lowest level in almost a decade as luxury demand in the country remains weak and local manufacturers dominate on electric vehicles.
* One of Banco Sabadell SA’s biggest investors said it will reject BBVA SA’s bid for its local rival, heightening uncertainty over the €17 billion deal just three days before it ends.
What Bloomberg Strategists say…
“The S&P 500 has declined to a key support level of 6,700.
The move so far still reflects positioning dynamics more than any change in the macro narrative, but the potential for a greater pullback is growing.”
—Michael Ball, Macro Strategist, Markets Live.
Some of the main moves in markets:
Stocks
* The S&P 500 fell 0.4% as of 4 p.m. New York time
* The Nasdaq 100 fell 0.6%
* The Dow Jones Industrial Average fell 0.2%
* The MSCI World Index fell 0.5%
* Bloomberg Magnificent 7 Total Return Index fell 1.2%
* The Russell 2000 Index fell 1.1%
* Oracle fell 2.5%
* Tesla fell 4.4%
* Dell Technologies rose 3.5%
Currencies
* The Bloomberg Dollar Spot Index rose 0.4%
* The euro fell 0.5% to $1.1651
* The British pound fell 0.5% to $1.3420
* The Japanese yen fell 1.1% to 151.99 per dollar
Cryptocurrencies
* Bitcoin fell 2.6% to $122,061.45
* Ether fell 4% to $4,505.01
Bonds
* The yield on 10-year Treasuries declined three basis points to 4.13%
* Germany’s 10-year yield declined one basis point to 2.71%
* Britain’s 10-year yield declined two basis points to 4.72%
* The yield on 2-year Treasuries declined two basis points to 3.57%
* The yield on 30-year Treasuries declined two basis points to 4.72%
Commodities
* West Texas Intermediate crude rose 0.6% to $62.03 a barrel
* Spot gold rose 0.5% to $3,981.41 an ounce
Have a lovely evening.
Be magnificent!
As ever,
Shab
“A diamond is a chunk of coal that did well under pressure.” — Dr Henry Alfred Kissinger
Shab Mohammadpour
Assistant to Carolann Steinhoff
Queensbury Securities Inc.
340A – 730 View Street
Victoria BC V8W 3Y7
Tel: 778-430-5851
Fax: 778-430-5828