US stocks rose for a second straight day on Tuesday, October 27, led by AI…

US stocks rose for a second straight day on Tuesday, October 27, led by AI stocks. The S&P 500, which tracks the 500 biggest US companies, gained 0.6% to 7,722.60 and is now within about 1.2% of its record high. The tech-heavy Nasdaq Composite rose 1.2% to 26,477.81, while the Dow Jones Industrial Average edged up just 16 points to 52,377.57. More stocks in the S&P 500 actually fell than rose, but big gains in a few large AI companies lifted the index. Oil prices eased, energy stocks fell more than 2%, and a report showed US consumer confidence came in better than expected. Broadcom climbed 4% after Bank of America, Citi, Morgan Stanley, and Blackstone announced $63 billion in financing to help AI company Anthropic buy Broadcom’s AI chips, and other chipmakers rose with it. Earnings season (when companies report quarterly profits) produced big swings. JetBlue soared 19% even after a larger-than-expected loss, because it expects profit margins to improve. Royal Caribbean rose after beating expectations, while Boeing fell nearly 11% on a bigger-than-expected loss. The Federal Reserve began its two-day meeting on Tuesday. Its interest rate decision comes on Wednesday afternoon in the US, which is early Thursday morning in Manila.

Philippine stocks bounced back strongly on Tuesday, ending a three-day losing streak. The PSEi, the index of the 30 biggest companies on the Philippine Stock Exchange, jumped 2.13% to 5,761.19. Gainers outnumbered losers 104 to 66, and trading was heavier at about ₱9.5 billion. Analysts credited bargain hunting after the recent sell-off, stronger Asian markets, renewed interest in AI, and portfolio adjustments by fund manager WisdomTree. Still, they called it a “relief rally” (a short-term bounce after heavy losses, not necessarily a turnaround) and warned that higher borrowing costs and weaker government spending could limit further gains. The peso crossed a historic line. For the first time ever, it closed weaker than ₱64 per dollar, ending at ₱64.17 after touching ₱64.20. It was the peso’s sixth straight record-low close, and it has lost about 10% of its value since late February. BSP Governor Eli Remolona said the central bank does not try to stop the peso from weakening; it intervenes only when the slide threatens to drive up inflation. Analysts warned October inflation could approach 8% and third-quarter economic growth could fall below 3%. Malacañang also called a meeting with the BSP and economic managers to coordinate on inflation and the economy.

Tuesday’s split screen sums up the past few weeks. Global enthusiasm for AI, sparked by big deals and IPO filings in the US, flowed into Asian markets and helped lift Philippine stocks. But the peso kept sliding, because the forces behind it go beyond stock market mood. Oil near $115 a barrel keeps the country’s import bill high. The US dollar stays strong while US interest rates remain elevated. And investors are worried about a slowing Philippine economy. Even the BSP’s jumbo rate hike last week hasn’t stopped the decline. Those effects are now reaching households directly. Electricity rates are expected to rise, and airlines will charge higher fuel surcharges in November. A peso past ₱64 makes everything imported, from fuel to food to raw materials, more expensive. OFW families get more pesos for each dollar sent home, but those extra pesos buy less as prices climb. The Fed’s decision early Thursday morning (Manila time) is the next big signal. If the Fed hints at another rate hike, the dollar could strengthen further.