U.S. stocks edged higher as solid earnings prospects from banks and AI firms this week largely offset increased Middle East risks driven by Houthi militant strikes against Saudi Arabia, driving brent crude to $105/bbl. The 10-year treasury yield was unchanged at 5.24% given today’s U.S. bank holiday. Bitcoin, gold and silver fell modestly; chip stocks were mixed.

This week we get Sept CPI and Fed Chair Warsh speaks at the IMF-World Bank event for central bankers in Bangkok on Friday. S&P 2026 EPS estimates of $367 (+32% YoY) imply a 21.3x P/E and inverted 4.7% earnings yield versus Treasuries—echoing the late-1990s—though yields may ease if Iran tensions ease. We remain cautious on $Tesla(TSLA.US) given its stretched valuation, negative long-term earnings revisions trend, and the expected commoditization of autonomous driving technology.