Nvidia reached deals with some of Wall Street’s largest firms aimed at raising massive amounts of capital to help the chipmaker’s customers finance the cost of computing power. The chipmaker has signed agreements to partner with Apollo Global Management, Blackstone, BlackRock, Brookfield Asset Management, Goldman Sachs and KKR to establish “compute financing platforms,” the companies announced Monday. The firms aim to deploy over $500 billion of outside capital in the coming years. The firms said the platforms will create pools of capital at “attractive rates” for Nvidia customers. “These financing platforms will help customers access scarce compute at scale and build the AI factories that will power every industry and country in the age of AI,” Nvidia CEO Jensen Huang said. Apollo and Blackstone earlier this year struck a deal with Broadcom to set up a similar financing platform for the chipmaker’s customers. The platform will offer financing to companies like Anthropic to pay for computing power from chips developed by Broadcom, including Google’s processing units. Nvidia’s stock ended Monday down nearly 3% after the Financial Times earlier reported the deal.

The Swiss market closed higher on Monday, outperforming most of the markets across Europe, thanks to fairly strong buying at select counters, including a few in the pharmaceuticals sector. The benchmark SMI ended up by 88.79 points or 0.61% at 14,633.70, the day's high, after staying positive throughout the session. Richemont, the top gainer in the benchmark index, climbed 2.75%. Alcon moved up 1.7%, Roche gained 1.6%, Lonza Group advanced 1.3% and Logitech International ended up by about 1.25%. UBS Group, Sonova, Novartis, Holcim, Helvetia Baloise Holding and Julius Baer ended up by 0.3%-1%. Galderma Group ended nearly 3% down. VAT Group, Amrize, Geberit, Schindler Ps, Nestle and Sandoz Group lost 0.7%-1.1%. Swisscom, Lindt & Spruengli, Partners Group and SGS also closed weak.

Europe
European stocks closed mixed on Monday after a choppy session as a lack of positive progress in U.S.-Iran talks and uncertainty over the reopening of the Strait of Hormuz rendered the mood cautious. Investors also looked ahead to the crucial U.S. inflation data this week for clues about the Federal Reserve's interest rate stance. The pan European Stoxx 600 edged up 0.03%. Germany's DAX and France's CAC 40 closed up by 0.02% and 0.13%, while the UK's FTSE 100 settled lower by 0.35%. Switzerland's SMI moved up 0.61%. Among other markets in Europe, Belgium, Czech Republic, Denmark, Finland, Greece, Ireland, Portugal and Sweden ended weak. Netherlands, Norway, Poland and Türkiye closed higher, while Austria, Iceland, Russia and Spain ended flat. In the UK market, miners Fresnillo and Glencore moved up 3.5% and 2.1%, respectively. Antofagasta gained nearly 1%, while Endeavour Mining closed 0.7% up. Energy stocks BP and Shell gained about 1.5% and 0.7%, respectively. Spirax Group, Metlen Energy & Metals, Weir Group, IG Group Holdings, BAE Systems, Croda International, Melrose Industries and AstraZeneca also closed higher. Shares of trading platform Plus500 gained more than 2% after the company posted record first-half results. Coca-Cola HBC, Imperial Brands and British American Tobacco shed 4.3%-5%. Vodafone Group ended lower by about 3%. Barratt Redrow, Whitbread, Admiral Group, 3i Group, Kingfisher, Associated British Foods, BT Group, Airtel Africa, National Grid, Persimmon, Halma, GSK and Legal & General Group also declined sharply. In the French market, STMicroelectronics rallied nearly 3%. ArcelorMittal, TotalEnergies, Stellantis, Credit Agricole and Safran gained 1.5%-2%. Thales moved up nearly 1%.

United States
U.S. stocks fell as Iran's refusal to reopen the Strait of Hormuz caused another spike in oil prices and inflation fears. The Dow Jones Industrial Average fell 60.95 points, or 0.11%, to 53975.98. The S&P 500 declined 4.53, or 0.06%, to 7753.11, after closing at a record high Friday due to renewed enthusiasm about the artificial-intelligence boom and hopes for a peace deal in Iran. The tech-heavy Nasdaq Composite lost 85.26, or 0.32%, to 26605.36. Utilities companies have a two-fold link to the Treasury market. Those companies' dividend yields, and hence stock prices, tend to track Treasury yields, and the sector is also heavily indebted. Intel's shares fell 4.1% to $97.52 after the chip maker said it would sell roughly $15 billion of common stock in a follow-on offering, seeking to increase capital expenditure in response to AI demand. Boeing agreed to take a minority stake in Archer Aviation in exchange for handing Archer control of three of the aerospace company's units, including its flying-taxi venture Wisk Aero. The United Arab Emirates' Adnoc Gas said it would invest more than $8 billion to boost production capacity, just months after the country's departure from the Organization of the Petroleum Exporting Countries. Canadian miner Barrick Mining settled a long-standing dispute with rival Newmont in connection with a Nevada joint venture, securing a $1.95 billion cash payout and paving the way for Barrick to spin off its extensive North American gold holdings. Barrick's shares slid 6.5% to $57.03, while Newmont rose 3.8% to $117.26.

Asia
Asian stock markets are showing a mixed picture in late trading on Tuesday: significant gains in South Korea are offset by losses in China. Trading in Japan is suspended due to a public holiday.

Bonds
The U.S. 10-year Treasury yield added 0.040 percentage point to 4.697%. The yield on the policy-sensitive two-year Treasury rose 0.034 percentage point to 4.236%.

Analysis
Bank of America raises its Diageo target to 2,080 (1,900) GBp – Buy
Jefferies lowers its SGL Carbon target to 4.80 (5) EUR – Hold
Berenberg raises its L'Oréal target to 442 (435) EUR – Buy

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