Stock Market Update

Equity futures point to a slightly higher opening this morning after recovering from overnight losses, looking to build on yesterday's robust advance that saw the major averages rally behind renewed strength in AI and semiconductor stocks and a favorable move in oil prices and Treasury yields.

The turnaround coincided with a Reuters report that Iran is prepared to reopen the Strait of Hormuz within seven days if the U.S. eases military pressure and lifts its blockade on Iranian ports. A senior Iranian official also said the country's delegation at the United Nations General Assembly has authority to pursue renewed diplomacy with the U.S. Iran's President Masoud Pezeshkian is attending this week's UN gathering, while President Trump is scheduled to address the General Assembly this morning as developments surrounding the conflict remain in focus.

U.S.-China relations are another focal point after Bloomberg reported that officials discussed artificial intelligence, investment, and trade during the second day of talks in New York ahead of this week's meeting between President Trump and Chinese President Xi Jinping.

The combination of renewed diplomatic hopes surrounding Iran, another retreat in oil and Treasury yields, and continued dialogue between the U.S. and China has helped equity futures recover from their overnight weakness and point modestly higher ahead of the opening bell.

In corporate news:

• Republicans pressuring President Trump to restrict exports of diesel, according to Politico. 
• Alibaba (BABA 119.07, +3.31, +2.86%) introduced a new proprietary AI chip as investors assessed high-level U.S.-China talks ahead of this week's summit.
• Novo Nordisk (NVO 39.35,-0.45, -1.1%) CEO Mike Doustdar says company is considering M&A opportunities, according to CNBC.
• On Holding (ONON 29.02, +1.70, +6.22%) set 2029 targets that include high-teens constant-currency sales growth, gross margin of at least 65%, and adjusted EBITDA margin of at least 22%. The company also authorized an inaugural share repurchase of up to $1 billion and reaffirmed its fiscal 2026 outlook.

Reviewing overnight developments:

Nikkei reports that Asia-Pacific equities finished mixed, with Chinese markets little changed, Hong Kong extending its winning streak, and Japan closed for a public holiday.

In news:

• Hong Kong saw renewed strength in AI and semiconductor shares.
• Alibaba (BABA 119.07, +3.31, +2.86%) introduced a new proprietary AI chip as investors assessed high-level U.S.-China talks ahead of this week's summit.

In economic data:

• There was no economic data of note

Equity Markets

• Japan's Nikkei: closed for holiday
• Hong Kong's Hang Seng: +0.2%
• China's Shanghai Composite: +0.1%
• India's Sensex: -0.4%
• South Korea's Kospi: +0.1%
• Australia's All Ordinaries: +0.4%

Major European indices are mostly higher as investors monitor lower oil prices and a diplomatic calendar centered on the UN General Assembly and the U.S.-China summit.

In news:

• The UN General Assembly and this week's U.S.-China summit remain in focus.

In economic data:

• U.K.'s September CBI Industrial Trends Orders -9 (expected -33; prior -25)
• Spain's July Trade Balance -EUR5.22 bln (prior -EUR7.69 bln)

Equity Markets

• STOXX Europe 600: +0.5%
• Germany's DAX: +0.5%
• U.K.'s FTSE 100: +0.2%
• France's CAC 40: +0.6%
• Italy's FTSE MIB: -0.2%
• Spain's IBEX 35: +0.8%