Global markets saw strong risk appetite today, with the Nasdaq rising 1.6% and the S&P 500 up 0.7%, driven by Nvidia, which surged 8.5% after projecting revenue growth of approximately 70% for the next fiscal year, reinforcing the narrative that the AI investment cycle is far from over. The Dow Jones edged up just 0.2%, reflecting the underperformance of “value” stocks, and the European Stoxx 600 fell 1.3%. In Asia, the Kospi rose 1.5% and China’s CSI 300 gained 0.9%, while the Nikkei edged down 0.2%. In commodities, oil rose sharply following a WSJ report that the Trump administration has no interest in returning to the terms of the memorandum of understanding reached with Iran in June: WTI rose 1.7% to $83.6, and Brent rose 2.3% to $89.8. Gold gained 0.3%, and copper fell 0.2%. On the fixed-income front, the Treasury yield curve rose across the board (2-year UST +1.6 bps, 10-year UST +2.1 bps, 30Y +2.0 bps) ahead of Fed Chairman Kevin Warsh’s speech on Friday in Jackson Hole, while Jeff Schmid (Kansas City) and Beth Hammack (Cleveland) insisted that now is the time to act to curb inflation, which remains above target. The German Bund rose 1.8 bps and the British Gilt rose just 0.1 bps, remaining virtually flat. The DXY closed flat, and the VIX fell 0.7 points to 14.5.

Venezuelan bonds had a very strong day after Axios reported that the Trump administration is close to finalizing a deal to take a stake in more than a dozen Venezuelan oil fields, which would double U.S. crude reserves and mark a significant expansion of Washington’s role in the country’s oil industry. As a result, the short-, medium-, and long-term segments of the sovereign yield curve rose by 0.8, 1.1, and 1.2 basis points, respectively, and the PDVSA yield curve rose by 0.9 basis points. Elecar rose by 1.1 basis points, and the PDV'20 gained 0.7 basis points. Trading volume was similar to yesterday’s, at around USD 200 million. At the same time, the National Assembly gave preliminary approval to an amendment to the Supreme Court Act that expands the judicial nominations committee, although the main driver of the day was clearly the oil-related news.

Latin American bond markets had a mixed and largely flat session, with high trading volume compared to recent days. Argentina's sovereign bonds rose 0.3 pts, with the Province of Buenos Aires moving in a similar direction, and the Dominican Republic's rising 0.1 pts, while Mexico, Brazil, Ecuador, El Salvador, and Pemex closed flat. Colombia's sovereign bonds were the exception, falling 0.3 pts.