Investors are anticipating Nvidia's earnings report and a delayed jobs report, which are expected to provide crucial insights into the economy and the sustainability of the artificial intelligence boom. The market has recently experienced volatility, with the S&P 500 and Nasdaq dipping below their 50-day moving averages. Investors are particularly interested in Nvidia's demand for AI chips and the impact of US trade policies on its business.

US credit markets are showing signs of caution as risk premiums on corporate bonds and junk bonds near recent highs, driven by concerns over the sustainability of artificial intelligence growth and broader economic issues. Investors have withdrawn significant bond orders after final pricing, and some bond sales have been pulled, reflecting a more cautious approach.

Foreign holdings of US Treasurys fell slightly in September, the first decline in six months, to $9.25 trillion. However Japan increased its holdings to $1.19 trillion, the highest since August 2022. China's holdings dropped to $700.5 billion.

The recent crypto sell-off has highlighted the risks of leveraged trading, with daily total liquidations on crypto exchanges reaching a record high in October. Investors have used leverage to amplify gains, but the recent market downturn has led to significant losses and forced liquidations.

Senate Banking Chair Tim Scott said he expects committee votes on the crypto market structure bill next month, aiming to bring the legislation to the Senate floor in early 2026 for President Trump's approval. The proposal would divide oversight between the SEC and CFTC and introduce a new category for "ancillary assets," though bipartisan support remains uncertain as Democrats push alternative language focused on DeFi.

Richmond Federal Reserve President Thomas Barkin emphasized the importance of upcoming economic data in guiding the central bank's decisions at its December meeting, noting the challenge of assessing inflation and unemployment without official statistics following a federal shutdown.

Hedge funds experienced notable gains in October as trades on Argentine assets paid off following a US rescue package and political developments favoring President Javier Milei. Redwood Capital Management's two funds gained about $129 million from Argentina positions, while Shiprock Capital Management advanced 6.4%--its second-best month ever.