Trending: The Korean crisis continues to escalate as President Trump agreed to back billions of dollars in new weapons sales to South Korea and Russian President Putin again rejected U.S. calls for new sanctions against North Korea.
Equities: The S&P 500 Index is lower this afternoon amid increased tensions on the Korean peninsula and catastrophic flooding in Texas. On average, since 1928, September is historically a losing month for the S&P 500. The volatility index neared all-time lows this Summer and history shows similarly subdued periods tend to be followed by a lift in volatility, and possible weakness in returns.
Fixed Income: The yield on 10-year Treasuries fell eight basis points to 2.08 percent, a 10-month low. Yields on Treasury bills due in October remained elevated as investors await developments on whether U.S. lawmakers would reach a deal to increase the debt ceiling in a bid to avert a default.
“Treasures market flashes debt ceiling warnings lights” | Financial Times
Commodities: Gold hits 11-month high on geopolitical concerns and bullish technicals.
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