2025-09-22 20:00

Nvidia shares up after it says it will invest $100 bln in OpenAI Apple shares up after brokerage raises target price Some Fed officials cast doubt on need for further rate cuts Indexes: Dow up 0.1%, S&P 500 up 0.4%, Nasdaq up 0.7% NEW YORK, Sept 22 (Reuters) - All three major U.S. stock indexes registered record closing highs for a third straight session on Monday, led by gains in technology shares, with Nvidia (NVDA.O) , opens new tab gaining after it said it will invest up to $100 billion in OpenAI. Shares of Nvidia gained 3.9%. Nvidia will also supply OpenAI with data center chips, the companies said, which further stoked optimism about AI prospects. Sign up here. Shares of Apple (AAPL.O) , opens new tab rose 4.3% after Wedbush raised the stock's target price on strong demand signs for the iPhone 17, while Tesla (TSLA.O) , opens new tab climbed 1.9%. Technology (.SPLRCT) , opens new tab led S&P 500 sector gains and ended 1.7% higher. Some Federal Reserve officials made remarks doubting the need for further rate cuts. Last week, the U.S. central bank cut interest rates for the first time since December and indicated more cuts would come at its upcoming meetings. Both St. Louis Fed President Alberto Musalem and Atlanta Fed President Raphael Bostic, in separate remarks, said that while the Fed's quarter of a percentage point rate cut at last week's meeting was appropriate as a way to manage the risk of rising unemployment, lowering inflation remains the priority. However, Fed Governor Stephen Miran, who last week dissented when the Fed cut the benchmark rate by a quarter of a percentage point and said a half-point cut was warranted, said on Monday that monetary policy "is well into restrictive territory." The S&P 500 is now up 13.8% for the year so far and up 3.6% for September, a month that is historically weak for stocks. "We're certainly pointing out to clients and having portfolios reflect that we're at all-time highs and valuations are getting stretched," said Oliver Pursche, senior vice president and advisor for Wealthspire Advisors in Westport, Connecticut. "There needs to be a catalyst for stocks to move materially higher, and markets appear to be kind of ignoring potential headwinds," he said. The Dow Jones Industrial Average (.DJI) , opens new tab rose 66.27 points, or 0.14%, to 46,381.54, the S&P 500 (.SPX) , opens new tab gained 29.39 points, or 0.44%, to 6,693.75 and the Nasdaq Composite (.IXIC) , opens new tab gained 157.50 points, or 0.70%, to 22,788.98. Also worrying some investors were U.S. President Donald Trump's new visa fees , opens new tab for foreign workers, which drew widespread condemnation from technology executives and others across social media. Shares of Tylenol maker Kenvue (KVUE.N) , opens new tab fell 7.5% during the session as investors braced for Trump to make an announcement linking the pain-killer to autism. After the closing bell, Trump said the Food and Drug Administration will tell doctors to advise pregnant women against using acetaminophen, the active ingredient in Tylenol. But after the announcement, Kenvue shares bounced up 4.7%. Among key economic reports this week will be one on the U.S. personal consumption expenditures price index, a closely watched inflation gauge. Advancing issues outnumbered decliners by a 1.22-to-1 ratio on the NYSE. There were 559 new highs and 99 new lows on the NYSE. On the Nasdaq, 2,716 stocks rose and 1,963 fell as advancing issues outnumbered decliners by a 1.38-to-1 ratio. Volume on U.S. exchanges was 18.65 billion shares, compared with the 17.5 billion average for the full session over the last 20 trading days. https://www.reuters.com/sustainability/sustainable-finance-reporting/us-futures-inch-lower-after-rally-markets-await-clarity-trump-visa-policy-2025-09-22/

2025-09-22 19:59

Measure meant to build up needed foreign reserves Suspension to last through end-October or $7 billion cap reached Exporters groups warn of supply glut Markets rally on tax cut, U.S. support pledge BUENOS AIRES, Sept 22 (Reuters) - Argentina's government on Monday temporarily eliminated export taxes on grains and their by-products, as well as on beef and poultry, in a bid to speed up sales abroad and rake in much-needed dollars to prop up the flagging peso currency. Just over a month ahead of congressional elections, President Javier Milei's government has faced setbacks in the legislature which have caused nervous investors to turn to the safe-haven dollar and forced the central bank to dip into its dwindling reserves. Sign up here. The decree published Monday suspends export taxes on soy, corn, wheat and their by-products, including biodiesel. It will last through the end of October, or until declared exports reach $7 billion. This significantly eases the tax burden for exports from the key sector, from a prior level of 26% on soybeans, 24.5% on soybean oil and meal and 9.5% on corn. Argentina is one of the world's top grains suppliers, and the sector is key to funneling in foreign currency. Presidential spokesperson Manuel Adorni later said that beef and poultry exports would also be tax-exempt through the end of October. SHORT-TERM RUSH The tax break could cause a rush to sell, especially as farmers look for cash to fund planting for next season, analysts said. Significant portions of the 2024/25 grains harvests worth more than $8 billion, remain unsold, according to analyst Lorena D'Angelo. After the announcement, soybean futures for November delivery Matba-Rofex exchange rose some $50 to around $355 per metric ton. Prices could climb to up to $400 per ton, D'Angelo said. However, the temporary measure could backfire, she and others warned, saying that by creating a short-term rush to sell, the resulting supply glut could limit potential price increases. Agricultural association Sociedad Rural Argentina criticized the decision, arguing for a permanent tax break. "It's clear that this is an emergency measure due to the need for dollars," said the group's vice president, Marcos Pereda. "This has happened in the past, and any temporary measure usually causes supply to greatly outweigh demand," he added. BROADER ECONOMIC BOOST Argentine markets rallied on Monday, with the tax break announcement followed by a pledge from Washington to examine financial support for Argentina. U.S. Treasury Secretary Scott Bessent said swap lines, direct currency purchases and purchases of U.S. dollar-denominated government debt could be used to boost the Latin American ally. The wholesale peso strengthened nearly 4.5% on Monday, closing at 1,412 per greenback, while on the parallel market , the currency appreciated around 3% to 1,475 per dollar. Dollar bonds and the main stock index also rallied, with the country risk index - a measure of investor confidence - coming down. https://www.reuters.com/world/americas/argentina-suspends-agro-export-taxes-scoop-up-dollars-2025-09-22/

2025-09-22 19:53

Peso strengthens after central bank had to defend currency last week Argentina removes export taxes on grains through October midterm election Investors eye Milei's policy adjustments past midterm vote NEW YORK, Sept 22 (Reuters) - Argentine financial assets rallied on Monday, with stocks rising the most in six months, international dollar bonds up more than 6 cents and the peso strengthening after Washington pledged full support for Argentina's right-wing government ahead of key midterm elections next month. U.S. Treasury Secretary Scott Bessent said "all options" are on the table for stabilizing Argentina, including swap lines and direct currency purchases, while underscoring President Donald Trump's confidence in Argentine President Javier Milei and his economic team. Sign up here. Bessent told reporters after earlier announcing support for Argentina on social media that any U.S. action would be "large and forceful," but said no steps would be taken until after he and Trump meet with Milei in New York on Tuesday. Argentine markets have fallen sharply in recent weeks, with international bonds down more than 20% for the year through Friday. The peso has been pressing against the weaker limit of a band set months ago, as corruption allegations inside Milei's circle and a larger-than-expected loss in a local election in Buenos Aires triggered investor concern over Milei's ability to reshape the economy. "Argentina's assets were in desperate need of a circuit breaker — and they just got one," said Alejo Czerwonko, CIO for emerging markets in the Americas at UBS. "Bessent's intervention carries outsized weight at this fragile juncture. It provides the Milei administration with a critical window to reorient ahead of October's midterms." A favorable political outcome for the government in the October election would go a long way toward containing investor anxiety ignited by the Buenos Aires vote earlier this month, Czerwonko added. MARKET RALLY IS A REBOUND An index of Argentine stocks traded in U.S. exchanges (.BKAR) , opens new tab rose 14%, and the local benchmark (.MERV) , opens new tab gained 7% Monday after falling more than 15% over the past two weeks. Earlier, the Argentine government said it would remove export taxes on all grains through next month, aiming to increase sales and boost the supply of dollars to meet demand from institutional investors. That means the tax will be removed past the midterm election on October 26. "Is this the 'whatever it takes' moment for Argentina?" said Armando Armenta, senior economist at AllianceBernstein, alluding to pivotal support from former ECB chief Mario Draghi to the euro experiment back in 2012. "Seems like Milei is getting the support to avoid a financial crisis ahead of the midterm election and ensure a smoother transition into 2026." The 2046 sovereign bond was up 8.3 cents at 55.5 cents on the dollar, data from MarketAxess showed. The peso strengthened 4.7% at 1,408.5 per dollar, after the Argentine central bank last week burned through more than $1 billion of reserves to defend it. Despite the rally in eurobonds, yields were still relatively high, between 16% and 26% across maturities. Investors were still focused on Milei's willingness to change course, which has been tested both in the streets and by markets. TEMPORARY RELIEF? "Depending on the scope and nature, a financial backstop from the U.S., combined with the export tax measures announced this morning, could help Milei more effectively manage within the current FX framework between now and the (midterms)," said Kathryn Exum, co-head of sovereign research at Gramercy Funds Management. This could reduce the rate at which authorities burn through precious reserves, which at current levels is unsustainable, Exum added. U.S. potential support to Argentina would likely only offer temporary relief for pressured assets, said Pramol Dhawan, head of emerging market portfolio management at PIMCO. "The country doesn't generate enough dollars at current exchange rates," he said. "Markets are testing the currency regime's viability and expect difficult adjustments — particularly currency devaluation — to rebalance the economy." He said that the adjustment, alongside continued U.S. and IMF support, "could give the country necessary breathing room for fundamental reforms." https://www.reuters.com/world/americas/argentina-markets-soar-after-us-bessent-pledges-support-2025-09-22/

2025-09-22 19:28

Bessent says US purchases of Argentine pesos, dollar debt among options Markets rally on pledge of support Milei government shaken recently by local election and scandal Trump, Bessent to meet with Milei in New York on Tuesday WASHINGTON, Sept 22 (Reuters) - U.S. Treasury Secretary Scott Bessent on Monday said that "all options" were on the table for stabilizing Argentina, including swap lines and direct currency purchases, while underscoring President Donald Trump's confidence in Argentine President Javier Milei and his economic team. Bessent told reporters any U.S. action would be "large and forceful," but said no steps would be taken until after he and Trump meet with Milei in New York on Tuesday on the sidelines of the United Nations General Assembly. Sign up here. Asked if Washington could act immediately afterwards, Bessent said: "We'll see where the markets are and what the level of outflows are - or maybe the outflows turn into inflows - but no one should doubt the resolve of this administration, or my resolve." Bessent refused to be drawn on what specific steps the U.S. might take, but said, "I can tell you that it will be large and forceful." Argentine financial assets rallied on Monday on the news, with U.S.-traded stocks up over 10% and the peso strengthening, after sharp drops in recent weeks that included international bonds declining more than 20% for the year through Friday. Markets have been roiled by corruption allegations inside Milei's circle and a larger-than-expected loss in a local election in Buenos Aires, reflecting growing frustration with austerity measures and triggering investor concern over Milei's ability to continue to reshape the economy, with October midterm elections on the horizon. Bessent, a former hedge fund executive, said he did not see a risk of financial contagion from the fallout and underlined Washington's confidence in Argentina's implementation of economic reforms. Since taking power in late 2023, Milei has had some success in taming high inflation and achieving a budget surplus. "What they're trying to do is bolster Argentina until the elections - if they can get that far," said Mark Sobel, a former senior U.S. Treasury official and current U.S. chairman of the Official Monetary and Financial Institutions Forum think tank. "Milei deserves tremendous credit for what they've done on the fiscal and monetary policy front ... but the exchange rate is just vastly overvalued and they've got to fix that," he said. Serious steps to do that would cause inflation, he said, posing further challenges for Milei ahead of the election. NO NEW TERMS FOR US SUPPORT Bessent first announced U.S. support for Argentina in a social media post, saying all options were on the table. "These options may include, but are not limited to, swap lines, direct currency purchases, and purchases of U.S. dollar-denominated government debt from Treasury's Exchange Stabilization Fund," Bessent wrote on X. He told reporters any U.S. action would not result in new demands or conditions beyond Argentina's continued adherence to the terms of its loan deal with the International Monetary Fund. "I can't speak for the president, but as far as Treasury is concerned, there's no conditionality," he said. "We remain confident that President @JMilei's support for fiscal discipline and pro-growth reforms are necessary to break Argentina's long history of decline," Bessent wrote on X. Argentina in April signed a new $20 billion four-year loan deal with the IMF, where the U.S. is the biggest shareholder. The deal required the country to dismantle years-long currency controls and loosen its grip on the peso, but economists say the currency remains overvalued. Argentina's central bank made its largest daily dollar sale in nearly six years on Friday as it continued to use reserves to support the local currency, meeting strong dollar demand from institutional investors wary of political instability. The bank's latest intervention was for $678 million, bringing the total amount of dollars sold in the last three sessions to $1.1 billion. Argentina shored up dwindling foreign reserves in April by renewing a $5 billion activated swap line with China for another year. TREASURY SATISFIED WITH IMF'S POSITION Bessent told reporters that the IMF was unable to make adjustments to its Argentina program until after October's legislative elections. He said he spoke with IMF chief Kristalina Georgieva over the weekend and was "very satisfied" with the global lender's position. It was not immediately clear if Georgieva, who is also due to attend the U.N. meetings, would meet with Milei in New York. The IMF had no immediate comment on Argentina's situation. Asked if Milei ally Elon Musk had played a role, given reports that Musk spoke to Trump on Sunday, Bessent said: "not that I know of." He said the Trump administration hoped to solidify what it sees as a rightward shift in Latin American countries, including potentially Colombia. Bessent blamed Argentina's turmoil on skittish investors with some "muscle memory" from Argentina's previous administration. "Either there's some risk management or a rush for the exit with the idea that the opposition could do well in the upcoming election," he said. https://www.reuters.com/world/americas/us-treasury-chief-us-ready-support-argentina-leaders-meet-tuesday-2025-09-22/

2025-09-22 19:20

Sept 22 (Reuters) - Danish offshore wind developer Orsted (ORSTED.CO) , opens new tab can restart work on the nearly finished Revolution Wind project off the coast of Rhode Island, a federal judge ruled on Monday, after President Donald Trump's administration halted the project last month. The ruling is a legal setback for Trump, who has sought to block expansion of offshore wind in U.S. waters. It is a palpable victory for Orsted, which has been losing $2 million a day since the project was halted on August 22. Sign up here. Revolution Wind is located 15 miles off the coast. Once completed, it is expected to produce enough electricity to power 350,000 homes in Rhode Island and Connecticut. Orsted's U.S.-listed shares were up nearly 9% at $11.60 following the ruling by U.S. District Judge Royce Lamberth. The U.S. Interior Department said it would continue to review the project while work proceeds. "As a result of the Court’s decision today, Revolution Wind will be able to resume construction as BOEM (the U.S. Bureau of Ocean Energy Management) continues its investigation into possible impacts by the project to national security and prevention of other uses on the Outer Continental Shelf," an Interior spokesperson said. Attorneys for the Trump administration had argued that the project, located off the coast of Rhode Island, failed to comply with conditions of its permit related to conflicts with national security and scientific ocean surveys. Revolution Wind disputed those claims. At the end of a two-hour court hearing in Washington, Lamberth issued a preliminary injunction that blocks the Trump administration from enforcing the order to halt construction. Lamberth, a senior judge appointed by Republican President Ronald Reagan, said the Trump administration had offered contradictory reasons for issuing its stop work order, and that the explanations offered weeks after the halt were “the height of arbitrary and capricious” government conduct. He also said Revolution Wind had reasonably relied on government assurances that were withdrawn without due process, imperiling a $5 billion investment. “If Revolution Wind cannot meet benchmark deadlines, the entire project could collapse,” Lamberth said. “There is no doubt in my mind of irreparable harm to the plaintiffs.” Orsted and its joint venture partner Skyborn Renewables had asked for a preliminary injunction in a lawsuit they filed earlier this month challenging the U.S. Interior Department's stop-work order. "Revolution Wind will resume impacted construction work as soon as possible, with safety as the top priority," an Orsted spokesperson said in a statement, adding that it would continue to seek a resolution with the administration. Rhode Island and Connecticut have also sued the administration over the stop work order. Connecticut Governor Ned Lamont issued a statement praising the ruling. "Today’s ruling allowing Revolution Wind to resume work is extremely encouraging for workers and our energy future. We will continue to engage with the federal government on a durable path forward for this project and on shared energy priorities,” Lamont said. https://www.reuters.com/sustainability/climate-energy/us-court-weighs-trump-halt-rhode-island-offshore-wind-project-2025-09-22/

2025-09-22 19:17

Sept 22 (Reuters) - Chipmaker Nvidia (NVDA.O) , opens new tab is set to invest up to $100 billion in ChatGPT-parent OpenAI, signing a letter of intent for a strategic partnership to deploy at least 10 gigawatts of compute, the companies said on Monday. Nvidia has used its financial clout to keep its hardware central to the buildout of artificial intelligence systems. Keeping OpenAI, which is also exploring its own chip designs, as a key customer could help the company reinforce its dominance as the industry considers rival suppliers. Sign up here. Here are some analyst reactions to the partnership: MATT BRITZMAN, SENIOR EQUITY ANALYST, HARGREAVES LANSDOWN "For Nvidia, the prize is huge — every gigawatt of AI data centre capacity is worth about $50 billion in revenue, meaning this project could be worth as much as $500 billion. By locking in OpenAI as a strategic partner and co-optimizing hardware and software roadmaps, Nvidia is ensuring its GPUs remain the backbone of next-gen AI infrastructure. The market is clearly big enough for multiple players, but this deal underscores that, when it comes to scale and ecosystem depth, Nvidia is still setting the pace — and raising the stakes for everyone else." JACOB BOURNE, TECHNOLOGY ANALYST, EMARKETER "Demand for Nvidia GPUs is effectively baked into the development of frontier AI models, and deals like this should also ease concerns about lost sales in China. It also throws cold water on the idea that rival chipmakers or in-house silicon from the Big Tech platforms are anywhere close to disrupting Nvidia's lead. For OpenAI, it signals greater independence as it continues diversifying away from its Microsoft partnership and races to develop its next-generation models." ANSHEL SAG, PRINCIPAL ANALYST, MOOR INSIGHTS & STRATEGY "I think this strengthens the partnership between the two companies that has existed since the beginning of OpenAI's existence. This also validates Nvidia's long-term growth numbers with so much volume and compute capacity, also enabling OpenAI to scale to even bigger customers." BEN BAJARIN, CEO OF TECHNOLOGY CONSULTING FIRM CREATIVE STRATEGIES "Really the point Nvidia was making was that it's just enabling OpenAI to meet surging demand and, at this point, we know there's surging demand for Nvidia GPUs, because that's primarily what OpenAI runs on." KIM FORREST, CHIEF INVESTMENT OFFICER, BOKEH CAPITAL "This sounds like Nvidia is investing in its largest customer. These arrangements can be beneficial for both parties. But there can be dangers as well. Being totally linked with each other can cause for short-sightedness and can make an entry point for other chip competitors to come into other AI companies and woo them. We are not sold on the model of LLM as being the technology that will create vast amounts of productivity that everyone expects." GIL LURIA, ANALYST AT D.A. DAVIDSON "While the announcement is positive for OpenAI's ability to ramp, we are concerned Nvidia has become the 'investor of last resort,' bailing out OpenAI's overextended commitments." DAVID WAGNER, PORTFOLIO MANAGER AT APTUS CAPITAL ADVISORS "Nvidia continues to double-down on AI as we always figured that CEO Jensen Huang would want to invest downward into AI factories - this announcement is much earlier than many would have expected." STACY RASGON, ANALYST AT BERNSTEIN "On the one hand, this helps OpenAI deliver on what are some very aspirational goals for compute infrastructure, and helps Nvidia ensure that stuff gets built. On the other hand the 'circular' concerns have been raised in the past, and this will fuel them further." https://www.reuters.com/business/view-analysts-react-nvidias-100-billion-investment-openai-2025-09-22/