Stocks, Bonds Find Relief Ahead of Fed, EU Floats Canada Becoming 'Associate Member'

Summary

Bloomberg Brief covers markets ahead of the Federal Reserve decision, with equities and bonds finding relief as traders await a potential hike. Citi's Andrew Hollenhorst argues the Fed will deliver a dovish hike and that long-term Treasury yields should fall. Other segments discuss the EU's associate membership proposal for Canada, failed crypto regulation, AI funding and safety debates, and movers including Intel, SK Hynix, and Soitec.

• U.S. equity futures and Treasuries stabilize ahead of the Fed decision; the 10-year yield sits near 5%.
• Citi's Andrew Hollenhorst expects a one-and-done Fed hike and lower long-term Treasury yields.
• Ven Ram argues markets overprice ECB, BOE, and BOJ rate hikes, while the Fed may need more hikes if data-driven.
• The EU proposes Canada as its first associate member, but details and member-state approval are uncertain.
• A crypto regulation bill fails in the Senate; crypto is seen trading like a macro risk asset driven by rates.
• AI funding race continues with OpenAI talks at a $1.2T valuation; AI spending is seen as critical to U.S. growth.
• Movers: Intel rises on SK Hynix chipmaking deal talks; Soitec jumps on a JPMorgan upgrade.
• UK inflation rises to 2.9%; Saudi Arabia boosts crude sales outside the Strait of Hormuz.