🚀 The AI rally is meeting a 24-year high in yields 📈

The Nasdaq 100 reached a fresh all-time high on Friday, and the S&P 500 also hit all-time high again yesterday ...

At the same time:

• The 10-year Treasury yield topped 5.3%
• The 30-year yield reached 5.69%
• Both were at levels not seen since 2002

The market has absorbed those higher discount rates because earnings are still accelerating. S&P 500 earnings per share are expected to grow more than 24% in Q3, led by projected growth of more than 65% in tech.

🔥 Weak jobs report reduces the odds of an October rate hike 🚨

The US added just 29,000 jobs in September, below every estimate in Bloomberg’s survey.

• Unemployment rose to 4.2%
• Annual wage growth slowed to 3%, its weakest pace since 2021
• Labour-force participation rose to a four-month high of 61.8%

The weakness was concentrated in AI-exposed white-collar sectors, while construction, manufacturing and healthcare continued to add jobs.

Jefferies called the report “the nail in the coffin” for an October hike, and Bloomberg Economics now expects the Fed to remain on hold for the rest of the year.

Layoffs remain historically low, and the household survey showed a rise in employment. The higher unemployment rate partly reflected more people entering the workforce.

💵The $3.5 trillion question behind the AI buildout ❓

Columbia professor Stijn Van Nieuwerburgh estimates that AI companies must generate $3.5 trillion in annual revenue by 2032 to justify the data-centre buildout now underway.

That is roughly 9% of US GDP, comparable with what Americans spend on food, twice total spending on energy or software, and seven times consumer spending on phone, streaming and internet services combined.

The estimate assumes AI companies can maintain today’s scarcity-driven pricing even as capacity quadruples and competition increases.

But computing capability has been doubling every four to five months, while effective prices have fallen 47% per quarter since 2023.

💀 SIA Business Class is finally getting pyjamas 🛏️

From November 2026, Singapore Airlines will roll out new amenities across every cabin class.

The headline upgrade?

For the first time ever, Business Class passengers will receive sleeper suits on:

- selected overnight flights longer than 6 hours
- all long-haul flights

Business Class also gets new BYREDO amenity kits containing:

- Blanche perfume
- hand cream and lip balm
- eyeshades, socks and a dental kit

Other cabin upgrades include:

- Suites and First: SISLEY skincare kits and 100% cotton sleeper suits
- Premium Economy: recycled-material pouches with travel essentials
- Economy: collectible batik drawstring amenity kits

Amenity kits will generally be offered on flights longer than 6 hours, though the rollout will be progressive, so not every eligible flight may receive them immediately.

A small upgrade, but a meaningful one for SIA.

Its rivals have offered Business Class pyjamas for years, and passengers increasingly expect more than just a lie-flat seat on long-haul flights.

The bigger reveal is still coming, with SIA expected to unveil its next-generation seats, entertainment system and travel experience.

For now, Business Class passengers can finally leave the extra sleepwear at home. 😴

Read more here

🇺🇸 Earnings growth is expected to lose momentum across most S&P 500 sectors 📉

Bank of America estimates that 10 of 11 sectors will see slower earnings growth in Q3 than in Q2.

Some of the biggest expected slowdowns:

• Consumer discretionary: 91% to 1.8%
• Financials: 22.3% to 2.4%
• Communication services: 126% to 66%
• Technology: 77.9% to 65.9%
• Materials: 44.6% to 30.1%

Healthcare is the exception, moving from -6.6% growth in Q2 to 2.6% in Q3. (watsup healthcare sector :>)