The Bloomberg US Aggregate Bond Index is on track for its best performance since 2020, potentially fueled by Federal Reserve interest-rate cuts and other factors. The index has returned about 6.7% this year, outpacing short-term Treasury bills. However, potential threats remain, including uncertainty over future rate cuts.

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Bond traders are preparing for a wave of delayed economic releases that will shape expectations for the Federal Reserve's next rate move, with the September jobs report due Thursday. JPMorgan's Priya Misra warned that stronger-than-expected labor figures could reduce the odds of a December rate cut and fuel volatility, while managers broadly expect the Fed to maintain an easing bias even if it pauses next month, as officials express uncertainty around the rate outlook.

Wall Street is pouring unprecedented capital into AI infrastructure, backing multibillion-dollar data center projects for tech giants like Meta, Oracle, and Amazon. Major fund managers, private equity firms, and banks are arranging massive debt and private deals to meet the surging demand for computing power, with some single deals reaching $30 billion or more.

Goldman Sachs is on track to achieve its highest market share in mergers and acquisitions since 2001, having advised on 34% of this year's $3.8 trillion in global deals, according to LSEG. The bank's involvement in major deals, such as Cidara Therapeutics' $9.2 billion acquisition by Merck and Electronic Arts' $55 billion take-private transaction, has bolstered its performance.

The Trump administration is pivoting sharply toward affordability amid voter frustration over high living costs. Officials are rolling out measures such as targeted tariff reductions and potential direct payments to help lower prices on everyday goods. Economists note that many prices are driven by market forces beyond presidential control, and measures such as lowering tariffs might take time to affect consumer prices.

Dallas Fed President Lorie Logan has signaled she would oppose a rate cut in December, citing concerns about inflation remaining above the Fed's 2% target. "Until I see convincing evidence that we are headed all the way back to our 2% target, I really do think modestly restrictive policy is appropriate," Logan said at an energy conference.

A potential rare earths agreement between the US and China could be finalized by Thanksgiving, according to US Treasury Secretary Scott Bessent. "I am confident that post our meeting in Korea between the two leaders, President Trump, President Xi, that China will honour their agreements," Bessent said.