Meta's Chip Suppliers May Buy Its Stock | Brazil Hit a Circuit Breaker | Bain Stayed In at $23.50

Chipmakers Led a Rally While Brazil Sank

Stocks rose on Monday, and chipmakers led. The S&P 500 was up about 0.8% in afternoon trading, and the Nasdaq Composite about 1%. The Dow gained about 0.3%. Nvidia (NVDA) rose about 2.6%.

Oil made a round trip. Brent traded between about $114 and $117 a barrel as Saudi, Pakistani and Turkish officials met Iran's leaders in Tehran. The 10-year Treasury yield held near 4.98%.

EQT (EQT) agreed to buy Range Resources (RRC) in an all-stock deal. The combined gas producer would have an enterprise value of more than $50 billion. Range rose about 17%, and EQT fell about 2%. Verizon (VZ) raised its full-year profit forecast and still fell about 3%.

Investor Signal

Two of the day's biggest deals ran on stock. EQT is paying with its shares, and Meta is selling new ones to fund AI. Stock avoids new interest costs but shifts more risk to shareholders. The Treasury sells $70 billion of five-year notes on Tuesday, a day before the Fed decides.

Meta Launched $35 Billion of Stock. Three Chip Suppliers May Buy Part of It.

Meta Platforms (META) launched about $35 billion of new stock on Monday to fund its AI buildout. About $22.5 billion is common stock sold through forward agreements. The rest is preferred stock that turns into common shares around August 2029.

Meta gets no cash from the common sale at first. It can settle the forwards on dates it picks, up to Nov. 19, 2027. It also plans a $60 billion sale program for its new non-voting Class C stock starting in early 2027, with no agreement signed.

Nvidia (NVDA), AMD (AMD) and Broadcom (AVGO) gave non-binding indications of interest in up to $5 billion of the common stock. Meta expects $135 billion to $145 billion of capital spending this year. In the third quarter, its capital spending topped the cash its business generated. Its shares were down about 1% in afternoon trading.

SpaceX (SPCX) signed a binding commitment for a roughly $40 billion lease of AI chips from a lessor managed by Apollo Global Management (APO). Elon Musk called the deal closed debt on Sunday. Monday's filing describes a lease that still has closing conditions, with its rate set later.

Investor Signal

Three chipmakers may now help fund one of their large customers. Up to $5 billion of Meta's sale could come from companies that sell it chips, and an Apollo-managed lessor will own SpaceX's chips and rent them back. That ties supplier sales to how easily buyers raise outside money. Microsoft (MSFT) and Alphabet (GOOGL) report Wednesday and Amazon (AMZN) Thursday. Spending paid from their own cash would loosen that tie.

Brazil Tripped Its First Circuit Breaker Since 2020. The Selloff Stayed in Brazil.

Brazil's election trade came apart once São Paulo opened. Trading halted after the Ibovespa fell 10% at the open, its first circuit breaker since March 2020. The index fell as much as 17% and was down about 15% around midday. At that pace it would be the worst day since 1998, Reuters reported.

The real fell as much as about 12% against the dollar. Brazil's Treasury canceled its bond sales planned for this week, local outlets reported. The iShares MSCI Brazil ETF (EWZ) was down about 21% in afternoon trading. XP (XP) lost almost half its value, Nu Holdings (NU) fell about 18% and Petrobras (PBR) about 14%.

A broad emerging-markets fund was down about 0.2%, and the Mexican peso firmed.

Investor Signal

The market is pricing Brazil's budget, not emerging markets as a group. Traders had Flávio Bolsonaro at 82 cents on Sunday afternoon, and the trade built on that bet unwound in one session. Bolsonaro has said he will seek to annul the result. The pick for finance minister is the next test of fiscal policy. Brazil-focused funds, local banks and companies that sell at home are most exposed.

Surgery Partners Signed at $23.50. Bain Is Keeping Its Stake.

Surgery Partners (SGRY) agreed to be bought by HealthSpan Partners, an affiliate of the hospital group Bon Secours Mercy Health. Holders get $23.50 a share in cash, valuing the surgery-center operator at about $5.7 billion including debt. Before the open, the talks were reported near $20.

The price is about 49% above Friday's close of $15.75. It is about 9% below the $25.75 that Bain Capital offered in January 2025. Bain owns about 39% and will roll its stake into the buyer rather than sell.

The deal needs a vote of shareholders not tied to Bain and antitrust clearance. It is expected to close in early 2027.

Investor Signal

Like Meta's chip suppliers, an existing backer is staying in rather than cashing out. The stock traded near $23.20 in the afternoon, about 1% below the deal price, a narrow gap that prices a high chance of closing. The proxy filing should show how the buyer splits equity and debt.

Apollo Bought Into a Gulf Manager. A Japanese Insurer Backed Man Group.

Apollo will take a minority stake in Mubadala Capital, the alternatives arm of Abu Dhabi's Mubadala, the firms said. With other new investors, it expects to commit $5 billion to Mubadala Capital's funds.

Meiji Yasuda plans to raise its commitment to Man Group's funds to 200 billion yen, about $1.25 billion, over three years. Most of it goes to private credit, Man said. The insurer is also weighing a stake of about 5% in Man.

Alpha Dhabi committed $1 billion to Alpha Wave's next AI fund, paid partly from the last fund's distributions.

Investor Signal

Insurer and state money is flowing to managers that finance AI hardware. Apollo manages the lessor behind SpaceX's chip lease and is now buying into a Gulf manager as well. Many institutions still want cash back first, so new commitments are selective. Apollo's next quarterly report should show how deep this pool runs.

The Fed Is Expected to Hold. Texas Factories Paid More for Inputs.

Prediction markets agree the Fed holds on Wednesday. Polymarket priced a hold at 94.5 cents early Monday, and Kalshi's hike contract traded at 6 cents. For December, the two priced a rate increase at about 76 to 79 cents, above what swaps implied.

The Dallas Fed's October factory survey showed price pressure. Its raw-materials price index rose to 55.3, about twice its long-run average. New orders fell to 9.3 from 30.7.

Investor Signal

The December signal matters more than Wednesday's hold. Higher input costs alongside weaker orders give the Fed a mixed signal. September's PCE price index arrives Thursday, a day after the decision. A hot reading would firm December bets and raise borrowing costs for the AI buyers above.

The AI buildout drew money from new places on Monday. Meta sold stock its own suppliers may buy, and SpaceX agreed to rent its chips from a lender. Brazil showed how fast a crowded bet unwinds when a vote goes the other way.

Wednesday brings the Fed and two of the largest AI buyers. Their spending plans will show how much of the next round they can pay for themselves.