Key Takeaways
- Brent crude settled near $91 a barrel, sparking fears that persistent energy inflation will force the Federal Reserve to keep interest rates elevated for longer.
- The 30-year Treasury yield climbed to 5.31%, reaching its highest level since 2007 amid concerns over rising U.S. debt and heavy issuance.
- Nvidia (NVDA) committed up to $105 billion in credit and hardware guarantees to back a massive OpenAI data-center project in Ohio.
- Anthropic’s annualized revenue run rate surpassed $65 billion in July, a sevenfold increase since late last year, as the AI firm prepares for a potential IPO.
- Nasdaq (NDAQ) announced plans for 23/5 trading, introducing a new 9 p.m. to 4 a.m. ET session starting December 6, 2026.
Market Selloff Driven by Energy and Geopolitics
Global stocks and bonds declined on Monday as Brent crude surged toward $91 a barrel, intensifying fears of a renewed inflationary spiral. The S&P 500 (SPY) fell 0.5%, the Dow Jones Industrial Average (DIA) dropped 0.5%, and the Nasdaq 100 (QQQ) eased 0.2%. Investor sentiment soured after reports indicated that President Trump rejected extending a U.S.-Iran truce, raising the risk of prolonged disruptions in the Strait of Hormuz.
The bond market faced significant pressure, with the 30-year Treasury yield jumping five basis points to 5.31%, its highest level in nearly two decades. This spike reflects growing investor anxiety over the sustainability of U.S. fiscal deficits and the heavy supply of new Treasury issuance. Market participants are increasingly demanding higher risk premiums for long-duration debt as the neutral interest rate appears to be shifting higher.
AI Sector Remains a Resilient Bright Spot
Despite the broader market retreat, semiconductor stocks bucked the trend, gaining 1.6%. Nvidia (NVDA) led the charge after confirming a massive financial commitment to support OpenAI. The chipmaker is providing up to $105 billion in guarantees for a data-center lease in Ohio, developed by SB Energy, a subsidiary of SoftBank (SFTBY). Nvidia (NVDA) also announced a $1.5 billion direct investment in SB Energy to secure infrastructure for its next-generation AI "factories."
In the private markets, Anthropic continues to show "unprecedented" growth. The company’s revenue run rate hit $65 billion at the end of July, up from just $9 billion at the end of 2025. Anthropic, which recently filed for a confidential IPO, reportedly achieved positive adjusted operating income in the second quarter, further strengthening its valuation case as it prepares to debut on Wall Street as early as this fall.
Structural Shifts: 24-Hour Trading and Capital Flows
Nasdaq (NDAQ) is moving to redefine market access by introducing nearly continuous trading. Starting December 6, 2026, the exchange will offer a new overnight session from 9 p.m. to 4 a.m. ET, effectively allowing the market to operate 23 hours a day, five days a week. The move is aimed at capturing rising demand from international investors, particularly in Asia, who currently face time-zone barriers to trading U.S. equities.
New Treasury International Capital (TIC) data for June revealed a shift in global holdings of U.S. debt. Japan’s holdings fell to $1.117 trillion, while China’s decreased to $633 billion. Despite these reductions by major central banks, total net TIC flows remained positive at $133.5 billion, supported by strong private sector demand for long-term U.S. securities, which saw net purchases of $172.7 billion.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.