Most Important News

1. US Bond Options Shift to 2027 Rate Cut Bets, Hedging Against Fed Policy Reversal;
2. City Cement Eyes SAR 452M Investments in Green, Mining, and Cement Tech Ventures;
3. Cenomi Centers Secures PIF Retail Development Deal for Al Madinah Downtown;

At the close of 18/8/2026, the Tadawul All Shares Index(TASI.SA) increased by 0.03%, closing at 10911.58 points; the Parallel Market Capped Index (NomuC)(NOMUC.SA) increased by 0.32%, closing at 21583.55 points.

As of Tuesday’s close, the S&P 500 index(SPX.US) decreased by 0.69%, the NASDAQ(IXIC.US) fell by 1.33%, and the Dow Jones Industrial Average(DJI.US) decreased by 0.22%.

US Bond Options Shift to 2027 Rate Cut Bets, Hedging Against Fed Policy Reversal

With July inflation, retail sales, and consumer confidence all weakening and job growth unexpectedly falling, rate options traders are betting the Fed will hold rates steady and are hedging for possible rate cuts in 2027. Investors are buying September expiry options on steady rates, and SOFR call options for March and June 2027, which profit if rate expectations fall.

According to Constitution Capital's Jeff Schuh, bets on rate hikes are being closed, and the chance of a September rate hike has dropped from 68% to around 50% in two weeks. Swaps now price in just 9 basis points of hikes for September and about 40 bps by June 2025. JPMorgan data shows investors’ short positions have dropped and neutral positions are at a four-month high.

Anthropic Could Go Public as Early as This Fall, Plans to Expand Revolving Credit Facility

Anthropic is considering expanding its revolving credit facility to more than $10 billion, up significantly from the $2.5 billion, five-year facility it secured last year, according to people familiar with the matter. Discussions are ongoing, and the final amount could be $10 billion or less. The company has asked its most active lead banks to commit about $1.25 billion each, with other banks expected to provide $1 billion, $750 million or less. Loan commitments are typically tied to IPO underwriting roles and fees.

Anthropic is working with Morgan Stanley, Goldman Sachs and JPMorgan on a potential IPO that could come as early as this fall. Separately, banks led by Morgan Stanley are arranging up to $15 billion in debt financing for Anthropic’s Texas data center projects, including $14 billion in bridge loans and a revolving credit facility backed by Google.

KSA Stocks

City Cement Eyes SAR 452M Investments in Green, Mining, and Cement Tech Ventures

City Cement Co.(3003.SA) announced updates on its subsidiaries and SAR 452 million in planned investments to diversify and integrate its business. Its Green Solutions arm is advancing waste management and alternative fuel projects, with financial returns expected from 2027. Through Green Solutions, City Cement owns 29.4% of Innovative Alternatives, a JV developing a SAR 350 million waste recovery facility near Riyadh, set for trial operations in 2028. Mining subsidiary Nizak Mining has started operations, while a 50/50 JV with Next Generation SCM aims to localize CemGreen’s cement tech, with SAR 102 million invested and returns expected end-2027. These projects support Saudi Vision 2030 sustainability and mining goals.

Cenomi Centers Secures PIF Retail Development Deal for Al Madinah Downtown

Arabian Centres Co.(4321.SA) has signed a three-year agreement with PIF’s Saudi Downtown Company to manage retail and mall development for the Al Madinah Downtown Project. The contract exceeds 5% of Cenomi’s 2025 revenue, with an option to extend for two more years. Expected to boost revenue and profit, the deal supports Cenomi’s asset-light growth strategy.

USA Stocks

BofA Maintains Nvidia “Buy,” Sees Shares 34%-50% Below Intrinsic Value

Bank of America analyst Vivek Arya estimates NVIDIA Corporation(NVDA.US) shares are trading 34%-50% below intrinsic value based on a sum-of-the-parts free cash flow valuation. BofA maintains its “Buy” rating and $350 price target, with financing risks already reflected.

Nvidia has committed about $300 billion in capital to ecosystem partners, including $70 billion in equity investments and $230 billion in guarantees or other backstop commitments. Arya said Nvidia’s investments across chips, land and power could help counter hyperscalers’ in-house chip competition, though weaker AI demand could pressure growth and its balance sheet.

Amazon Expands Data Center Investment

Amazon.com, Inc.(AMZN.US) said Tuesday it will increase its planned data center investment in northwest Louisiana to $18 billion from $12 billion and add a third data center campus in Shreveport. Once all three campuses are completed, the projects are expected to create up to 750 full-time data center jobs and support about 2,500 additional jobs.