Market Beats | Israel and Hamas Agree to Truce and Hostage Release; Wall Street’s Record Run Fuels Overheating Concerns; Manhattan Rents Dip from Record Highs; Ferrari Cuts EV Target, Shares Sink 15%; PepsiCo Sales Decline in North America; Amazon Launches “Quick Suite” to Compete in Workplace AI; Silver Soars to Highest Since 1980

—— Israel and Hamas Agree to Truce and Hostage Release; Wall Street’s Record Run Fuels Overheating Concerns; Manhattan Rents Dip from Record Highs; Ferrari Cuts EV Target, Shares Sink 15%; PepsiCo Sales Decline in North America; Amazon Launches “Quick Suite” to Compete in Workplace AI; Silver Soars to Highest Since 1980

1. Israel and Hamas Agree to Truce and Hostage Release

Israel and Hamas have reached an agreement for a ceasefire and the release of all hostages held in Gaza, marking a major step toward ending a two-year conflict that has devastated the Palestinian enclave and roiled the Middle East.

Israeli Deputy Foreign Minister Sharren Haskel told Bloomberg TV that a ceasefire took effect on Thursday. The breakthrough came after days of indirect talks in Egypt’s Sharm El-Sheikh, mediated by the US, Egypt, Qatar and Turkey, and based on a peace framework unveiled by US President Donald Trump last week.

“I am very proud to announce that Israel and Hamas have both signed off on the first phase of our Peace Plan,” Trump said in a post on social media. He added that about 20 living hostages, along with the remains of those who died in captivity, will be released “very soon,” while Israeli troops will “withdraw to an agreed line as the first steps toward a strong, durable, and everlasting peace.”

Both sides confirmed the accord. In Tel Aviv’s Hostages Square — a symbolic site for rallies demanding the captives’ release — crowds gathered Thursday morning in anticipation of the exchange. Witnesses also reported celebrations in Deir al-Balah in central Gaza.

An Israeli official said implementation would begin at midday local time, with troops starting to pull back within 24 hours. The security cabinet will meet at 5 p.m., followed by the full cabinet session to formally ratify the deal, the official said.

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2. Wall Street’s Record Run Fuels Overheating Concerns

After a 36% rally from April’s lows, Wall Street’s record-breaking climb has prompted renewed warnings that the stock market is overheating. Analysts caution that while artificial intelligence optimism continues to push equities to fresh highs, signs of exhaustion are emerging beneath the surface.

“The ongoing excitement for AI and tech stocks keeps propelling the market upward, but investors should stay alert to short-term overextensions,” said Craig Johnson, chief technical strategist at Piper Sandler. He noted that market breadth is showing early signs of fatigue, which could lead to a consolidation phase as investors turn their focus to the upcoming earnings season.

The S&P 500 edged lower to hover near 6,740. The yield on 10-year Treasuries rose two basis points to 4.14%, while the dollar wavered. Silver surged past $50 an ounce — its highest since the Hunt brothers’ squeeze in the 1980s. According to Bespoke Investment Group, since the five-day trading week began in 1953, the S&P 500’s returns following all-time highs have been only slightly less positive than its long-term average.

“The best strategy for passive investors is not to overthink things,” Bespoke strategists said.

Daniel Skelly, head of market research and strategy at Morgan Stanley Wealth Management, added that fears of an AI bubble are misplaced. “Unlike past speculative episodes, the biggest spenders in AI continue to see real earnings growth, which supports the fundamentals behind this rally,” he said.

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3. Manhattan Rents Dip from Record Highs

Manhattan rents eased in September as the city’s peak rental season came to an end. The median rent on new leases fell to $4,550, down $50 from August and $150 below the all-time high reached in July, according to data from Miller Samuel Inc. and Douglas Elliman Real Estate. Even so, rents were still up 8.3% from a year earlier.

New Yorkers have endured a tough year of record-high rents and fierce competition for apartments. A modest price decline is typical for September, when demand cools after college students and new professionals settle in. “Rents coming down from August to September doesn’t signal a major shift toward affordability,” said Jonathan Miller, president of Miller Samuel. “It’s a seasonal pattern.”

New lease signings fell from a year earlier for a third consecutive month, suggesting more tenants are choosing to renew rather than relocate. Economic uncertainty, bidding wars, and higher monthly costs are discouraging moves, Miller said.

While he doesn’t expect rents to fall sharply, Miller noted they may stabilize or soften over the coming months, depending partly on mortgage rates. “Right now, the rental market is mortgage-rate sensitive,” he said. “If borrowing costs drop meaningfully as the Federal Reserve continues to cut rates, that could pull renters into the for-sale market and ease rental demand.”

Inventory remains tight. Manhattan’s vacancy rate stood at 2.11%, below historical norms, and available listings declined from a year earlier for the third straight month.

In Brooklyn, the median rent on new leases reached $3,925 — the second-highest on record and 7.5% higher than a year earlier. In northwest Queens, which includes Long Island City and Astoria, median rent climbed 4.3% from last September to $3,650. Both boroughs saw slight declines from August levels.

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4. Ferrari Cuts EV Target, Shares Sink 15%

Ferrari NV slashed its electric vehicle production target and issued a weaker-than-expected 2030 profit forecast, sending its Milan-listed shares tumbling as much as 15% to €357 on Thursday.

The Italian luxury carmaker said it now plans for fully electric models to account for 20% of its lineup by 2030, down from the 40% goal announced three years ago. Adjusted operating profit is projected to climb from €2.1 billion this year to €2.75 billion by the end of the decade — below the €3.2 billion analysts had expected.

Ferrari also forecast that revenue will rise from €7.1 billion in 2025 to €9 billion in five years, short of the €10 billion predicted by analysts.

Unveiling core technologies behind its first electric sports car, Ferrari said the model would feature a “roomy interior,” high-performance batteries, and a distinctive electric sound. “As a market leader, we must ensure our clients experience the same driving thrills whether they use an ICE, hybrid, or electric,” Chief Executive Officer Benedetto Vigna told the Financial Times.

Under the revised plan, 40% of Ferrari’s cars will still run on internal combustion engines by 2030, another 40% will be hybrids, and 20% will be fully electric. In the first half of this year, petrol-powered vehicles accounted for 53% of total shipments, with the rest being hybrids.

“In a time of uncertainty, there’s only one thing that can help — agility,” Vigna said.

Investors had been eagerly awaiting Ferrari’s first EV, the Elettrica, which will begin deliveries late next year. The model’s chassis, made from recycled aluminum, will feature an ultra-short wheelbase, and its battery will have an energy density of nearly 195 watt-hours per kilogram.

Still, Vigna acknowledged the limitations of current EV technology: “You cannot make a Ferrari supercar with the electric technology that exists today,” he said.

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5. PepsiCo Sales Decline in North America

PepsiCo Inc. reported weaker sales and announced the departure of its chief financial officer after less than two years, as the company faces mounting pressure from activist investor Elliott Management.

The maker of Pepsi and Doritos said third-quarter organic sales volumes fell 4% in both its North American food and beverage divisions, reflecting how higher prices and growing health concerns have been driving some consumers away.

Elliott, which last month revealed a $4 billion stake in PepsiCo, has presented a 75-page proposal outlining recommendations to revive growth. The fund’s campaign has intensified pressure on Chief Executive Officer Ramon Laguarta, whose leadership has seen slowing sales momentum over the past two years.

PepsiCo also announced that CFO Jamie Caulfield will retire next month and will be succeeded by Steve Schmitt, currently the finance chief of Walmart’s U.S. operations — the company’s largest customer — on November 10.

Laguarta told analysts he has had “a couple of constructive and collaborative interactions” with Elliott and expects more to come. He said most of the investor’s ideas are already part of PepsiCo’s long-term strategy.

“I think we’re aligned on one critical point,” Laguarta said. “PepsiCo is undervalued, and there are significant opportunities to improve the company’s valuation through a few targeted interventions carried out with urgency.”

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6. Amazon Launches “Quick Suite” to Compete in Workplace AI

Amazon.com Inc. unveiled Quick Suite, an updated artificial intelligence platform for business customers, as it seeks a larger foothold in the fast-growing market for AI-powered productivity tools.

Amazon Web Services announced Thursday that Quick Suite combines a chatbot and a set of AI agents capable of analyzing sales data, producing reports, and summarizing web content. Customers using AWS’s earlier Q Business software, released 18 months ago, will be encouraged to migrate to the new version. “We’re putting this out now because both internal and external customers are saying, ‘This thing’s good—let’s go,’” said Julia White, AWS’s chief marketing officer.

Priced at $20 per user per month, Quick Suite integrates with Slack and other tools from Amazon partner Salesforce Inc. It can ingest information from internal databases, social media feeds, Microsoft Corp.’s storage systems, and Adobe Inc.’s creative and marketing tools. The software runs as a web application with a browser plugin that follows users across the internet.

White said Quick Suite recently rolled out to Amazon employees, who have cycled through multiple AI tools in recent years. “ChatGPT is great, but you know, you can’t use it at work,” she noted, referencing corporate concerns about placing sensitive data into unsecured chatbots.

Nonetheless, demand for workplace AI tools has spurred fierce competition among major tech firms. Microsoft last week said it would move paying users of its consumer Copilot chatbot into a new Office suite tier to reinforce its position with business users.

Alphabet Inc.’s Google on Thursday unveiled Gemini Enterprise, a rival platform for workplace applications priced at $30 per user per month.

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7. Silver Soars to Highest Since 1980

Spot silver surged as much as 4.8% to $51.235 an ounce on Thursday — the highest level since the infamous Hunt brothers’ squeeze in 1980 — before paring gains.

The metal has climbed more than 70% this year, outperforming gold’s record rally, as investors flock to safe-haven assets amid mounting concerns over U.S. fiscal risks, an overheated stock market, and threats to the Federal Reserve’s independence. A shortage of freely available silver in London’s bullion market has further fueled the rally, pushing borrowing costs to record levels.

The tightness has upended normal market dynamics: New York silver futures, which typically trade a few cents above spot prices, fell into a steep discount of as much as $2.50 an ounce below spot. Futures dropped as much as 3.2% on Thursday despite the spot rally. According to Bloomberg calculations, borrowing costs for silver in London climbed to 11%, the highest since data began in 2002.

The squeeze has been building for months. Fears that the U.S. might impose tariffs on silver prompted traders to rush shipments to New York, depleting London inventories and reducing the metal available for lending.

Much of the remaining silver in London is locked in vaults backing exchange-traded funds, leaving limited supply for spot transactions.

“The premium in London should eventually attract metal back,” said Daniel Ghali, commodity strategist at TD Securities. “Traders can buy cheaper silver in the U.S. or China and ship it to the U.K. to capture the higher price — but for now, availability in London is critically low.”

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