Morning Bid: Storm brewing

Key Points:

• Wall Street's S&P 500 and Nasdaq both hit new record highs, fueled by expectations of a strong AI-driven profit surge in Q3, with forecasts predicting a 30% annual growth.
• US Treasury yields remain near 24-year highs amid ongoing heavy debt sales, with recent 3-year note auctions smooth but yielding the highest rates in 20 years; upcoming 10-year and 30-year auctions are closely watched.
• The New York Fed's 10-year Treasury term premium, reflecting investor uncertainty about long-term debt, has risen to its highest level in 12 years at 96 basis points.
• The Federal Reserve will release minutes from its September meeting, where it unanimously decided to raise interest rates for the first time in three years, providing clues on future monetary policy.
• In Europe, French government debt risk premia widened significantly due to fiscal concerns and political uncertainty around Marine Le Pen's presidential bid, raising fears of renewed eurozone debt market instability reminiscent of the 2010-2012 crisis.