Opening Bell: 10.1.26

US Treasury yields hit 24-year high as global bond selloff deepens [Reuters]Bond yields, which rise when prices fall, have soared globally as soaring energy costs fan inflation. The boom in artificial intelligence and data-centre building have heightened competition for capital and raised expectations about economic growth and where short-term interest rates will settle…. "Financial ​markets are in the midst of a discovery process to see where the new long-term anchor sits," said HSBC's chief Asia economist Fred Neumann.Wall Street’s Trading Desks Come Down From a Record High [WSJ]Markets saw a turbulent summer: the AI trade stumbled as semiconductor stocks fell, hedge fund Situational Awareness suffered a bruising decline and leveraged investors unwound their riskiest positions. Stocks subsequently recovered, and the S&P 500 ended the quarter with a gain.The end result for banks is likely to be of the best third quarters they’ve had, better than a year ago, but not as strong as that second-quarter bonanza.Wall Street’s Hopes for a Blockbuster IPO Season Are Fading [WSJ]Investors had been lining up for a parade of IPOs this fall, expected to be headlined by a gigantic and record-setting offering from Anthropic. But volatility in oil prices and rising bond yields, as well as an intensifying debate around AI safety, have dented investor enthusiasm and prompted many of the companies to revisit their listing plans….The string of delayed offerings illustrates how quickly investors’ enthusiasm for shares of risky new companies can cool. Investors were clamoring for newly issued shares when SpaceX raised $86 billion in its seemingly goldilocks debut in June—and getting rewarded for it until recently.UBS Should Quit Switzerland Over Capital Rule, Investor Says [Bloomberg]“The simple fact is that Switzerland is no longer an attractive or desirable location for UBS,” Artisan Partners portfolio managers including Daniel O’Keefe wrote in a letter to UBS’s board on Wednesday…. Artisan Partners estimated that the move could amount to around $36 billion of forgone market capitalization….Fed watchdog finds no crimes in $2.4B building renovation, only mismanagement [AP][Jerome] Powell’s term as chair ended in May, but he took the highly unusual step of remaining on the board as one of seven governors. His term as a governor lasts until January 2028. Powell said earlier this year he would remain on the board at least until he is convinced that Pirro’s investigation is done. By keeping his seat, Powell has also prevented the Trump administration from filling another spot on the board.Trump on Wednesday afternoon seized on the report to renew his call for Powell to resign from the Fed.Sydney Sweeney’s racy ads help sports betting platform quadruple valuation to $2B [N.Y. Post]Most of the new capital for Novig came from existing investors…. The platform’s earlier investors include venture-capital firms Pantera Capital, Multicoin Capital and NFX.