Headline: Markets Steady on Shutdown Hopes as Hotels Absorb $1.2B Hit and NBIS Secures $3B Meta Deal
The U.S. market tone turned cautiously optimistic as investors weighed progress toward a shutdown deal, sector rotation out of Big Tech, and firm expectations for Federal Reserve rate cuts. Yet the real economy is feeling the strain: hotel operators report a $1.2 billion revenue shortfall, with an estimated 186,000 rooms sitting empty each night—pressure that is especially acute for smaller properties facing tighter margins and financing conditions.
Equity highlights were mixed. The Dow climbed to a record on hopes of a fiscal resolution, while the Nasdaq dipped as money rotated into defensive sectors. In corporate updates, NBIS reported revenue quadrupling and announced a $3 billion agreement with Meta. Despite the momentum, NBIS shares remain about 30% below recent highs, with some analysts projecting up to 40% upside from current levels. Policy signals were also in focus: Goldman Sachs now expects China’s “dual cut” to arrive in early 2026 as the PBOC prioritizes currency stability, implying a slow, uneven path for yuan appreciation dependent on stronger exporter inflows. In Australia, RBA Assistant Governor Brad Jones cautioned that markets are struggling to price risk accurately.
Commodities saw broad moves. Natural gas jumped roughly 4%, while coffee and cocoa rallied on tight supplies. Grain markets were mixed, with corn supported by algorithmic buying as soybeans and wheat edged lower. In digital assets, a former BlackRock executive disclosed a more than $3 billion allocation to Ethereum, citing a roughly 3% staking yield, growing institutional trust, and ETH’s potential as future financial infrastructure.
Key Points: – U.S. hotels face a $1.2 billion revenue shortfall, with about 186,000 rooms unoccupied nightly; small operators are most exposed. – The Dow hit a record on shutdown deal optimism, while the Nasdaq eased amid rotation out of Big Tech; rate-cut expectations remain firm. – NBIS revenue quadrupled and it landed a $3 billion Meta agreement; shares trade about 30% below highs, with analysts seeing up to 40% upside. – Goldman Sachs expects China’s “dual cut” in early 2026, as the PBOC prioritizes yuan stability and gradual appreciation tied to exporter inflows. – RBA’s Brad Jones said markets are struggling to price risk, underscoring ongoing policy and liquidity uncertainties. – Commodities advanced unevenly: natural gas +4%, coffee and cocoa rallied on tight supply, grains mixed; a former BlackRock executive placed $3B+ into Ethereum, highlighting a 3% staking yield and institutional adoption.
