Daily News
Stocks Post Back-to-Back Losses as Treasury Yields Hit 19-Year High Ahead of Fed Decision; Gold Rebounds Above $4,300; Crude Slips Below $105; UK Inflation Jumps to 3.1%
16 September 2026
Today in Brief
Asia-Pacific markets traded mixed in early Wednesday trade, with Japan's Nikkei 225 slipping 0.34% while the Topix added 0.7%, South Korea's Kospi edged up 0.12% as the small-cap Kosdaq declined 1.05%, Australia's S&P/ASX 200 climbed 0.24%, and Hong Kong's Hang Seng slid 0.18% while the CSI 300 was down 0.42%, as futures markets priced in 92% odds of a quarter-point Fed hike on Wednesday. U.S. stocks posted back-to-back losses Tuesday as traders looked ahead to the Fed's policy decision and Treasury yields surged to multiyear highs — the Dow Jones Industrial Average lost 328.09 points, or 0.63%, to close at 52,093.11, the S&P 500 fell 0.45% to 7,585.73, and the Nasdaq Composite dropped 0.78% to 25,981.57, with losses cushioned by gains in AI-linked names including Coherent, Advanced Micro Devices, and Qualcomm. Gold climbed back above $4,300 an ounce on Wednesday, ending a two-session decline, while crude oil fell below $105 per barrel, retreating from four-month highs after a surprise increase in US crude inventories despite ongoing Middle East supply disruptions. Elsewhere, UK inflation jumped to 3.1% in August on surging fuel costs, and the Bank of Japan is set to raise interest rates to a 31-year high on Friday.
In other news: UK Prime Minister Andy Burnham is slated to hold his first face-to-face meeting with President Trump next week on the sidelines of the UN General Assembly in New York; China's industrial output grew 5.2% year-on-year in August on an AI-driven tech boom, even as consumption and investment stayed weak; Meta CEO Mark Zuckerberg sided with Nvidia's Jensen Huang over Anthropic's Dario Amodei in the debate over AI safety and slowing capability development; AWS said it cannot restore cloud service to facilities in Bahrain and parts of the UAE more than six months after Iran-war drone strikes; Nvidia CEO Jensen Huang is set to attend Trump's state dinner for Chinese President Xi Jinping on September 24; and SpaceX is targeting September 22 for Starship's first orbital test flight.
In Asia, markets were mixed in early Wednesday trade
In Asia, markets were mixed in early Wednesday trade. Japan's Nikkei 225 lost 0.34%, while the Topix added 0.7%. South Korea's Kospi added 0.12, while the small-cap Kosdaq declined 1.05%. Australia's S&P/ASX 200 climbed 0.24%. Hong Kong's Hang Seng Index slid 0.18% while the CSI 300 was down 0.42%. Futures markets were pricing in a quarter-point hike for Wednesday with 92% odds, according to the CME FedWatch tool. Odds of an additional quarter-point hike were 45% for the Fed's October meeting and 30% for the Fed's December meeting. The current target rate range is 3.5% to 3.75%.
Stocks post back-to-back losses as oil surges, 10-year yield hits 19-year high
Stocks fell on Tuesday as traders looked ahead to the Federal Reserve's policy decision this week — which could send ripples through the economy — and as Treasury yields surged to multiyear highs. The Dow Jones Industrial Average lost 328.09 points, or 0.63% to close at 52,093.11. The S&P 500 fell 0.45% to end at 7,585.73, while the Nasdaq Composite dropped 0.78% and settled at 25,981.57. Losses in the S&P 500 and Nasdaq were mitigated by gains in a number of stocks connected to artificial intelligence, which were under pressure in the prior trading day. Coherent added nearly 2%, while Advanced Micro Devices gained 2%. Qualcomm advanced more than 4%.
Gold climbed back above $4,300 an ounce on Wednesday, ending a two-session decline
Gold climbed back above $4,300 an ounce on Wednesday, ending a two-session decline as gains in oil prices and bond yields lost momentum ahead of the latest US Federal Reserve policy decision. Oil prices pulled back from multi-month highs after a surprise increase in US crude inventories, although ongoing supply disruptions in the Middle East continued to support prices. Meanwhile, global bond yields steadied after their recent rise as investors turned their attention to several major central bank decisions this week. The Fed is widely expected to raise interest rates by 25 basis points, marking its first hike in around three years as policymakers work to curb inflationary pressures. Markets will also focus on signals regarding another potential increase later this year, with expectations building for a move in October or December.
Crude oil fell below $105 per barrel on Wednesday, retreating from four-month highs
Crude oil fell below $105 per barrel on Wednesday, retreating from four-month highs after industry data showed a surprise increase in US crude inventories despite widening supply disruptions in the Middle East. API data showed US crude stockpiles surged by 7.14 million barrels last week following a 300,000-barrel decline in the previous week, defying expectations for another drawdown. Meanwhile, oil loadings at Saudi Arabia's Yanbu port remained suspended following the shutdown of the crucial East-West pipeline. There is still no clear timeline for when operations at the key pipeline, which provides an alternative route around the Strait of Hormuz, will resume, as Iran-backed Houthi militants renewed attacks on Saudi Arabia this week.
UK inflation jumps to 3.1% as energy costs soar
The U.K.'s annual inflation rate jumped to 3.1% in August, pushed up by surging gasoline and diesel prices. The print, which was in line with economists' expectations, marked the first inflation reading above 3% since March. The country's Office for National Statistics said that the spike was largely driven by rising motor fuel costs. The average price of gasoline rose by 9.1 pence ($0.12) per liter between July and August, the ONS said, putting average prices at their highest since Nov. 2022. Meanwhile, average diesel prices rose by 14.2 pence per liter in August. Inflation rose to 2.9% in July, as a government-regulated price cap on energy costs was revised sharply upward.
BOJ set to raise interest rates to 31-year high as inflation risks loom
The Bank of Japan is set to raise interest rates to a 31-year high on Friday and signal readiness to keep pushing up borrowing costs, joining other major central banks in fighting persistent inflation pressures driven by soaring oil costs. The move would be the first hike in three months and take interest rates closer to levels the BOJ deems neutral to the economy, marking another step away from decades of ultra-low rates that cemented the yen's status as a cheap global funding currency. A hike by the BOJ would follow one by its European counterpart and an expected tightening by the U.S. Federal Reserve later this week, highlighting their focus on inflation risks. Having nearly fully baked in a rate hike, markets are focusing on any hints BOJ Governor Kazuo Ueda could provide on the timing and pace of further increases.
Burnham and Trump to hold first face-to-face meeting in New York
UK Prime Minister Andy Burnham is slated to meet with U.S. President Donald Trump for their first face-toface bilateral exchange next week on the sidelines of the United Nations General Assembly in New York, according to reporting from The Times. The impending meeting represents a delicate diplomatic test for the newly installed prime minister, coming on the heels of two telephone conversations between the pair since Burnham assumed office in June. Initial plans for Burnham to travel directly to Washington ahead of the UN assembly were abandoned due to scheduling conflicts surrounding a high-profile state visit by Chinese Leader Xi Jinping. "Xi wiped out the calendar," a diplomatic source noted, underscoring the tight scheduling constraints at the White House.
Tech boom powers China's factories but economic imbalances deepen as consumption slows
China's industrial sector showed renewed strength in August as the AI-driven tech boom fuelled factory output, though sluggish consumption and a worsening investment slump reinforced concerns over deepening economic imbalances. Tuesday's data highlighted a familiar fault line in the world's second-largest economy, where resilient manufacturing and exports are sustaining growth even as weak household spending and a property market downturn weigh on domestic demand. The divergence is likely to intensify pressure on Beijing to roll out more support measures as policymakers seek a more balanced recovery. Industrial output grew 5.2% from a year earlier in August, quickening from a 4.5% increase in July and beating expectations for a 4.8% rise, figures released by the National Bureau of Statistics showed. Strong expansion in equipment and high-tech manufacturing underpinned the production upturn.
Meta CEO Mark Zuckerberg sides with Nvidia's Huang on AI safety and slowdown debate
Meta CEO Mark Zuckerberg shared his view of artificial intelligence safety on Tuesday, taking a stance that's more akin to the perspective of Nvidia CEO Jensen Huang rather than Anthropic chief Dario Amodei. Zuckerberg said in a post on X and other social media platforms that he believes AI labs that fail to "focus on alignment will fall behind," referring to the kind of work that developers conduct to ensure the technologies adhere to human values. This topic of AI safety has been blown into the spotlight over the past few days after Amodei published an essay over the weekend in which he called for the tech industry to "slow the pace at which we improve the capabilities of AI models," an option that Altman later endorsed and which President Donald Trump later criticized. "There is a lot of debate about slowing progress on capabilities until alignment catches up," Zuckerberg said.
AWS says it can't restore service to Bahrain, UAE facilities 6 months after Iran strikes
Amazon Web Services said Tuesday it can't restore access to cloud-computing facilities in Bahrain and parts of the United Arab Emirates, more than six months after the sites were damaged by drone strikes in the early days of the Iran war. The company said in an update posted to AWS' health dashboard that the damage at multiple Bahrain-based sites exceeded what its services are designed to withstand. "After a thorough assessment, we have determined that we are unable to restore access to the resources and data hosted exclusively in this region," AWS wrote. In a separate post, AWS said it's similarly been unable to recover resources and data stored in one of its availability zones in the UAE. It continues to work to restore two other UAE zones that were affected.
Nvidia CEO to attend Trump dinner for Xi, source says
Nvidia CEO Jensen Huang is set to attend U.S. President Donald Trump's state dinner for Chinese President Xi Jinping, a source familiar with the matter said on Tuesday. Trump is scheduled to meet with Xi on September 24 in Washington. Huang's attendance at the dinner comes amid growing public alarm about the potential danger posed by AI. Nvidia supplies chips to AI developers, positioning the company as a key player in global discussions about the technology. The U.S. and China are the two major forces driving development of advanced AI tools and the technology's global adoption. State dinners are among the highest diplomatic honours a U.S. president can bestow on a foreign leader and are typically reserved for heads of allied nations.
SpaceX targets first Starship orbital test on September 22
SpaceX said on Tuesday it was preparing to launch its next Starship flight test as soon as September 22, a mission expected to send the vehicle into orbit for the first time and deploy Starlink V3 satellites. Starship's 14th test flight would mark a major leap in the rocket's development over its last test in July, which flew a suborbital trajectory that took the spacecraft into space before returning it to Earth without completing an orbit. The company plans to place Starship into orbit around Earth, a milestone that would allow it to test the vehicle over a longer-duration flight and deploy the first batch of Starlink V3 satellites. The mission, pending regulatory approval, is expected to last nearly 10 hours, with Starship flying about 275 km above Earth and completing about six orbits before splashing down in the Pacific Ocean west of Chile.