Daily News – 17th Sep ’26
Daily News
Dow Drops 600 Points as Fed Hikes Rates for First Time Since 2023; Gold Rises Toward $4,300; Crude Near $102; Trump Threatens EU Tariffs Over Canada Bid
17 September 2026
Today in Brief
Asia-Pacific markets were mostly higher Thursday, with Japan's Nikkei 225 adding 0.46% and the Topix up 0.82%, South Korea's Kospi rising 0.72% and the small-cap Kosdaq gaining 1.11%, and Australia's S&P/ASX 200 up 0.27%, while Hong Kong's Hang Seng fell 0.73% and the CSI 300 slipped 0.36%; Generac jumped more than 30% in extended trading after Amazon received warrants to buy up to $340 million of its shares as part of a data-center backup power deal. U.S. stocks fell on Wednesday after the Federal Reserve raised interest rates for the first time in three years and Fed Chairman Kevin Warsh flagged persistent inflation — the Dow dropped 631.21 points, or 1.21%, to 51,461.90, the S&P 500 fell 0.45% to 7,551.81, and the Nasdaq eased 0.01% to 25,978.42, as the Fed's unanimous 12-0 decision lifted the fed funds rate a quarter point to a range of 3.75%-4%. Gold rose toward $4,300 an ounce on Thursday as an oil-price rally lost steam on reports Saudi Arabia aims to restore around half its East-West pipeline capacity within days, while crude traded near $102 per barrel after a sharp prior-session fall; US crude inventories fell 640,000 barrels to 423.4 million barrels, a smaller draw than analysts had anticipated.
In other news: President Trump threatened tariffs on the EU, or a halt to trade with the bloc entirely, if it proceeds with making Canada an associate member; Trump plans to meet Gulf Cooperation Council leaders at the UN General Assembly next Tuesday to discuss the Iran war's endgame; Trump said he retains confidence in Fed Chair Kevin Warsh while demanding rates be cut to 1% "or less"; Huawei said it will launch two new AI chips, the Ascend 960DT and 960PR, in 2027 as it targets Nvidia; American, United, and Southwest are scaling back flight schedules as a fuel-price surge pressures profits; Apple is reportedly in talks with Nvidia about using its NVLink Fusion interconnect for an enterprise AI server targeted for 2029; and Meta's Mark Zuckerberg said competition and liability already give AI labs enough incentive to build safely, breaking from calls for a coordinated slowdown.
In Asia, Japan's Nikkei 225 added 0.46%, while the Topix rose 0.82%
In Asia, Japan's Nikkei 225 added 0.46%, while the Topix rose 0.82%.The Kospi advanced 0.72% and the smallcap Kosdaq gained 1.11%. Hong Kong's Hang Seng index was down 0.73%, while Mainland China's CSI 300 fell 0.36%. Australia's S&P/ASX 200 inched 0.27% higher. Generac rose more than 30% in extended trading after Amazon received warrants to buy up to $340 million of its shares. The warrants are part of a deal in which Generac will supply Amazon with backup power generators for its data centers.
Dow drops 600 points as Fed rate hike and Warsh's inflation talk unnerve investors
The Dow Jones Industrial Average fell on Wednesday after the Federal Reserve hiked interest rates for the first time in three years and central bank Chairman Kevin Warsh highlighted persistent inflation. The 30-stock Dow lost 631.21 points, or 1.21% with Goldman Sachs leading the way lower. The blue-chip average ended the day at 51,461.90. The S&P 500 dropped 0.45% to end at 7,551.81, while the Nasdaq Composite ended the session down 0.01% at 25,978.42. All three were higher at one point during the session before the Fed took action and Warsh spoke at a press conference. In a unanimous decision, the Fed raised the overnight funds rate by a quarter percentage point, bringing the target range to between 3.75% and 4%.
Gold rose toward $4,300 an ounce on Thursday, recovering losses from the previous session
Gold rose toward $4,300 an ounce on Thursday, recovering losses from the previous session as the recent rally in oil prices lost steam, easing inflationary pressures. Those moves followed reports that Saudi Arabia is aiming to restore around half of its East-West pipeline capacity within days and return it to full operation within six weeks. US Energy Secretary Chris Wright also said that 18 million barrels of crude and petroleum products passed through the Strait of Hormuz earlier this week. Still, gold remained under pressure after the US Federal Reserve raised interest rates and signalled another hike before the end of the year. The Fed increased the fed funds rate by 25 basis points to 3.75%-4%, as expected, marking its first rate increase in three years.
Crude oil traded near $102 per barrel on Thursday after a sharp fall in the previous session
Crude oil traded near $102 per barrel on Thursday after a sharp fall in the previous session, following reports that Saudi Arabia plans to restore roughly half the capacity of its East-West pipeline within days and bring it back to full operation within six weeks. The key pipeline, which provides an alternative route around the Strait of Hormuz, was damaged in drone attacks last week. In the meantime, Saudi Arabia has stepped up efforts to transport more crude through Hormuz with assistance from the US military. Meanwhile, US Energy Secretary Chris Wright said that 18 million barrels of crude and petroleum products passed through Hormuz earlier this week. In the US, official data showed that crude inventories declined by 640,000 barrels to 423.4 million barrels, although the decrease was smaller than analysts had anticipated.
Trump threatens EU with tariffs over Canada associate-membership proposal
President Donald Trump on Wednesday threatened to impose tariffs on the European Union or halt trade with the bloc entirely if it proceeds with its plan to make Canada its first-ever "associate member." "I think it's laughable ... Canada has been a terrible trade partner," Trump told reporters after landing in North Carolina. He conditioned his threat on the intention of European leaders, saying that "if I think it's at all a hostile act, I will put very serious tariffs or stop trading with Europe on many things." Trump's remarks came after European Commission President Ursula von der Leyen said EU was opening the door for Canada to become the first associate member of the 27-member bloc.
Trump plans to meet Gulf leaders at UN next week on Iran war's endgame: report
U.S. President Donald Trump plans to meet Gulf leaders on the sidelines of the United Nations General Assembly in New York next Tuesday to discuss next steps for the war with Iran, Axios reported Thursday. The report came as Washington's efforts to resume ceasefire talks appear to have stalled, as Gulf states absorb escalating attacks from Iran and Iran-aligned Houthi militants in recent days, that have further disrupted energy exports and rattled oil markets. Trump is expected to meet leaders from the six Gulf Cooperation Council states — Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, Kuwait and Oman — with the guest list possibly widening to other Arab and Muslim leaders, according to the report.
Warsh says inflation is still too high as Fed hikes for the first time since 2023
In a move widely anticipated by Wall Street, the Federal Reserve raised its benchmark interest rate by a quarter percentage point and suggested one more increase could be in the cards before year-end. The rate hike moves the central bank's target range on the overnight funds rate to 3.75% to 4%, and policy makers voted 12-0 in favor of the increase. The central bank's tougher stance on monetary policy comes as the Fed grapples with stubborn inflation, worsened by a recent rebound in oil prices. At his press conference, Fed Chairman Kevin Warsh said that neither he nor his fellow policymakers are happy with the current pace of inflation. "Our predominant focus is on the price stability side of our mandate," he said. "The plain fact is that inflation is too high and has been for too long."
Trump says he still has confidence in Fed Chair Warsh, demands 1% or lower interest rates
President Donald Trump said Wednesday he still has confidence in Federal Reserve Chair Kevin Warsh, but also said he wants the central bank to slash interest rates to 1% "or less." Trump's comments came hours after the central bank announced its first rate hike since 2023. Warsh, who was nominated by Trump as Fed chair, had defended Wednesday's widely expected rate increase of 25 basis points as appropriate. The decision by the 12-member Federal Open Market Committee to raise benchmark interest rates to a target range of 3.75% to 4% was unanimous. "I do," Trump told reporters when asked after arriving on a campaign trip to North Carolina if he still had confidence in Warsh. "I'm relying on Kevin, but he's got, you know, a very tough board, he's got a board that was put there by other people," Trump said. "And I told, I talked to Kevin, and I said, 'You might as well vote with the board. It's not going to matter.'"
China's Huawei sets 2027 launch for new AI chips as it targets Nvidia
Huawei Technologies will launch two new artificial-intelligence semiconductors in 2027, rotating chairman David Wang said on Thursday, as the Chinese tech giant builds up its AI computing business and seeks to challenge U.S. chipmaker Nvidia. Huawei plans to launch the 960DT in the first quarter of 2027 and the Ascend 960PR in the third quarter, Wang said. The company is also working on ways to connect very large numbers of AI chips, allowing them to work together as one bigger computing system. Most advanced AI programmes require more processing power than a single chip can provide. Wang said in a speech at a company even in Shanghai that Huawei's UnifiedBus technology would be a key link in the company's next generation of large AI systems.
American, United, Southwest scale back schedules as fuel shock reshapes flying
American Airlines, United Airlines and Southwest Airlines are scaling back planned flight schedules following a recent surge in fuel prices that threatens their profits, executives said Wednesday. The U.S. airline industry has been leaning on tighter capacity, resilient demand and higher fares to absorb a runup in fuel costs since the Iran war began. Executives at all three carriers said on Wednesday that demand remained strong even after price increases, helping them offset much of the higher cost of jet fuel. But the latest jump in fuel is prompting them to reassess less-profitable routes late this year and, potentially, into 2027. American said the latest jump in fuel prices alone was adding about $1 billion to its fourth-quarter costs, while United said some flights planned for December would no longer operate and that further adjustments could follow in the first quarter and into 2027.
Apple considers Nvidia tech for return to server market
Apple is developing an enterprise AI server built around its own M8 Ultra chips, with a target launch of 2029, and has held talks with Nvidia about using the chipmaker's NVLink Fusion interconnect platform to link those chips together, The Information reported Wednesday. Nvidia which dominates the AI server market and earns roughly a fifth of its data-centre revenue from networking gear, is the most direct equity expression of that development: any Apple deal to adopt NVLink Fusion would add a new, large-volume customer while simultaneously confirming Nvidia's strategy of monetising interconnect technology even as rival chips challenge its GPU franchise.
Meta's Zuckerberg says AI labs have enough incentive to build safely
Meta Platforms CEO Mark Zuckerberg said on Tuesday that competition and liability give AI companies enough reason to act individually on safety, appearing to break from calls by leaders of top AI firms for a coordinated slowdown in AI development. The comments underscore a split among industry executives and U.S. authorities over how to respond to warnings that the technology is advancing faster than companies can control it, with some industry insiders warning it poses an existential threat to humanity. Zuckerberg, in an X post on Tuesday, said that every lab has the responsibility and incentive to move at the pace required to train its models safely, and the ability to take its own actions to ensure that happens.
