Quantum computing is emerging as Wall Street's next major theme with breakthroughs like IBM's Nighthawk processor and Google's speed demonstrations. The sector promises a projected $1.3 trillion value increase by 2035 as tech giants race toward quantum advantage. While organoid computing using biological processors shows potential, it faces severe ethical constraints regarding consciousness and sentience that quantum computing avoids. Quantum benefits from clear regulation and massive government funding, unlike organoid research, which is stuck in an ethical grey zone.
EQUITY
Wall Street had a calibrating day after a blockbuster open to the week, with the market heavily favouring the Dow while smaller caps and Mag7 slumped. The U.S. government reopening was likely to happen soon following a House stopgap funding vote and presidential signature. Goldman reiterated its call to diversify into non-U.S. equities, projecting a weaker dollar. AMD topped chart with an increased data centre outlook dependent on its Helios platform.
GOLD
Gold prices extended their five-day rally, reaching a three-week high above $4,200, pricing in U.S. government reopening that will further increase spending limits and dollar devaluation. The shutdown's end would also enable critical labour and inflation reports to inform the Fed's December meeting, where the market is betting for another 25 basis points to support a weakening economy.
OIL
The crude oil market erased a three-day rally in a single day to three-week lows as OPEC's revised outlook said global supply will align with demand by 2026, reversing its earlier deficit forecast and confirming a third-quarter surplus. Further pressure came from the US EIA raising its domestic production forecast and the IEA extending its projection of rising global oil demand until 2050.
CURRENCY
The dollar index fell steadily near 99 as a short-term funding bill ended the historic government shutdown, paving the way for a flood of delayed economic data. Meanwhile, the Chinese yuan hovered near a two-week high at 7.11 per dollar, while the yen slid to record lows against the euro and a nine-month low versus the dollar after the new prime minister advocated for cautious rate hikes.
