Daily News
Dow Slides for Third Day as Treasury Yields Hit Multidecade Highs; Gold Set for Weekly Decline Near $4,270; Crude Slips Toward $93 on Iran Deal Hopes; Asia Markets Mixed as Nikkei Extends Record Run
25 September 2026
Today in Brief
Asia-Pacific markets traded mixed, with Japan’s Nikkei 225 adding 1.06% and the Topix rising 1.19%, while Australia’s S&P/ASX 200 fell 0.46% and Hong Kong’s Hang Seng dropped 1.69%; mainland China and South Korea were closed for a holiday. Treasury yields extended their climb, with the 10-year hitting 5.225% late Thursday — the highest since 2007 — and the 30-year reaching 5.502%, the highest since 2004, fuelled by hawkish comments from Federal Reserve Governor Michael Barr, persistently high energy prices tied to the Iran war, and a hot PMI report; Fed funds futures now imply a roughly 68% chance of an October rate hike. The Dow fell for a third straight session, sliding 161.61 points (0.31%) to 51,349.98, while the S&P 500 slipped 0.02% to 7,704.13 and the Nasdaq eked out a 0.01% gain to 26,939.37, with stocks coming off session lows after Reuters reported U.S. and Iranian negotiators in New York were weighing a phased deal to reopen the Strait of Hormuz in exchange for lifting the U.S. blockade on Tehran. Gold traded near $4,270 an ounce and was on track for a weekly decline of more than 2% on a stronger dollar and surging yields, while crude slipped toward $93 a barrel, snapping a two-day rally, on the same Iran deal reports.
In other news: Iranian President Masoud Pezeshkian said it is up to the U.S. to decide whether to end their seven-month war, as Houthi militants fired dozens of missiles and drones at Saudi targets — six intercepted — triggering emergency alerts in Mecca, Jeddah and Yanbu, prompting Saudi Arabia, Turkey and Pakistan to plan an urgent chiefs-of-staff meeting under the Mecca Joint Defense Agreement; China’s Xi Jinping told President Trump there is more opportunity for cooperation than competition on AI during their White House meeting; a federal judge forced the White House to readmit MS NOW, CNN and Politico journalists after temporarily lifting Trump’s press ban; Oracle issued a force majeure notice on Blue Owl’s Jupiter data center project for OpenAI, sending ripples through AI infrastructure financing; the FDA approved Eli Lilly’s once-weekly insulin Onswik for type 2 diabetes; Google said it will launch a prototype satellite testing AI chips in space under Project Suncatcher; and Qualcomm secured a patent-licensing extension with Apple running through March 2027, with an option to extend two more years.
In Asia-Pacific, Japan’s Nikkei 225 added 1.06% while the Topix rose 1.19%
In Asia-Pacific, Japan’s Nikkei 225 added 1.06% while the Topix rose 1.19%. Australia’s benchmark S&P/ASX 200 was 0.46% lower. Markets in mainland China and South Korea are closed for a holiday. Hong Kong’s Hang Seng index was 1.69% lower. The drama continued in the bond market, where the 10-year Treasury yield climbed to 5.225% late Thursday, the highest level since 2007, while the 30-year yield reached 5.502%. This week’s ascent in yields was fuelled by hawkish comments from Federal Reserve Governor Michael Barr, persistently high energy prices due to the Iran war, and a hot purchasing managers’ report. Fed funds futures trading suggests a roughly 68% likelihood of a rate hike in October, according to the CME FedWatch tool.
Dow falls for a third day as bond yields hit fresh highs
The Dow Jones Industrial Average fell for a third straight session on Thursday, as Treasury yields at multidecade highs continued to weigh on the most cyclical parts of the market. The 30-stock index slid 161.61 points, or 0.31%, to 51,349.98. The S&P 500 ticked lower by 0.02% to 7,704.13. The Nasdaq Composite eked out a 0.01% gain to 26,939.37 Stocks came off their session lows after Reuters, citing sources, reported that U.S. and Iranian negotiators in New York are considering a deal that would bring a phased end to the conflict in the Middle East, whereby Iran would reopen the Strait of Hormuz and the U.S. would lift its economic blockade on Tehran.
Gold traded around $4,270 an ounce on Friday and was on track to decline more than 2% for the week
Gold traded around $4,270 an ounce on Friday and was on track to decline more than 2% for the week, pressured by a stronger dollar and surging Treasury yields as expectations grew that the Federal Reserve may need to raise interest rates further to curb inflation. On Thursday, the 10- and 30-year US Treasury yields rose to their highest levels since 2007 and 2004, respectively, while the dollar climbed to a near two-month high. The moves came as stronger-than-expected US economic data and elevated oil prices fuelled concerns over persistent inflation and higher interest rates. Markets are currently pricing in roughly a 67% probability of a Fed rate hike in October, following the first increase in three years last week.
Crude oil fell toward $93 per barrel on Friday, snapping a two-day rally
Crude oil fell toward $93 per barrel on Friday, snapping a two-day rally amid reports that the US and Iran were considering a phased deal that could reopen the Strait of Hormuz and lift a US blockade on Iranian ports. Efforts to reach a breakthrough were reportedly underway on the sidelines of the UN General Assembly, with Qatari officials mediating the talks. Iran has maintained that it must retain control over Hormuz and would not accept a deal unless the US eases military pressure and removes its blockade. Meanwhile, a White House official said President Donald Trump remained open to talks with Iran but stressed that the US had little need to negotiate given its strong position following the sanctions campaign and blockade. Elsewhere, tensions in the Middle East escalated after Iran-aligned Houthi militants in Yemen launched missiles toward Saudi cities, including Yanbu and Taif.
Iran says it’s up to U.S. to end war as China presses for de-escalation
Iranian President Masoud Pezeshkian said it is up to the U.S. to decide whether to end their seven-month war, amid continued missile strikes in the Middle East and a fresh push by China to help broker a peace resolution. “It’s America that must choose whether it wants to end this or not,” Pezeshkian said, responding to a question about whether the war could end by year-end, in an interview aired Thursday on Fox News. The remarks came as the Houthis fired dozens of missiles and drones at Saudi targets on Friday morning, according to Saudi authorities, who said they intercepted six ballistic missiles. Emergency alerts were issued in Mecca, Jeddah and Yanbu. Saudi Arabia, Turkey and Pakistan planned an urgent meeting of their chiefs of staff to discuss ways to support the kingdom under the Mecca Joint Defense Agreement.
China’s Xi urges U.S. to cooperate on AI
Chinese President Xi Jinping told U.S. President Donald Trump that there is more opportunity for cooperation than competition on artificial intelligence. That’s according to a state media readout of the two leaders’ meeting in the White House Oval Office Thursday local time. “The two sides can continue AI dialogue, exchange views on risks and benefits, and together guard against the misuse or malicious use of AI,” Xi said in Chinese, according to a CNBC translation of the state media readout. He noted AI is important to both the U.S. and China. “Both sides have competition. Cooperation, even more so,” he said. Xi also emphasized that humans should maintain control of the technology, and that AI should support human progress.
30-year Treasury yield hits highest level since 2004 as bond market rout continues
Treasury yields were trading at multidecade highs on Thursday, as investor bets on another rate hike from the Federal Reserve mounted. The 30-year Treasury bond yield was last about 10 basis points higher, hitting a high of 5.501%, a level not seen since June 2004. The benchmark 10-year Treasury note yield, which is tied to rates on mortgages, surged more than 10 basis points to 5.223%, to levels not reached since June 2007. The 2-year note yield rose more than 4 basis points to 4.941%. Global bonds also sold off. Japan’s 10-year JGB yield rose its highest since August 1996. U.K. Gilts and German Bunds also moved higher, with yields on various European bonds hitting fresh multi-year highs.
White House allows blocked reporters in after judge lifts Trump ban
The White House on Thursday began readmitting journalists from three media outlets — MS NOW, CNN and Politico — after a federal judge temporarily lifted President Donald Trump’s ban on those outlets. The move came after Secret Service officers initially barred some journalists from those outlets from entering the White House earlier Thursday despite the order by Judge Timothy Kelly. Kelly ordered Trump and other defendants in a lawsuit by the outlets reply to their new court filing notifying him of non-compliance with his temporary restraining order against the president’s ban. The White House’s director of operations responded to Kelly with a declaration that said the White House had restored press passes to the affected outlets. The outlets by that time had begun reporting that their journalists were being admitted to the White House.
Oracle, Blue Owl project delay sends ripples through AI financing, sources say
Oracle’s move to protect itself against potential delays at a massive data center project developed by Blue Owl in New Mexico sent a chill through the trillion-dollar market for AI infrastructure financing, according to interviews with bankers and investors. Oracle issued a force majeure notice in connection with Jupiter, a data center campus Blue Owl unit STACK Infrastructure is building to support OpenAI, the latest setback for a sector where lenders and investors are growing more cautious about financing the industry’s breakneck expansion. Blue Owl said the notice did not alter the parties’ commitment to the project.
US FDA approves Lilly’s once-weekly insulin injection for type 2 diabetes
The US Food and Drug Administration has approved Eli Lilly’s once-weekly basal insulin, Onswik, for adults with type 2 diabetes, the drugmaker said on Thursday, offering patients an alternative to daily long-acting insulin injections. Here are some details: Onswik, chemically known as insulin efsitora alfa-gobe, is intended to be used alongside diet and exercise to control high blood sugar. The once-weekly treatment could reduce the number of injections by more than 300 per year compared with once-daily basal insulin, Lilly said. Lilly said Onswik would be available in the United States in the coming months as a pre-filled KwikPen in two concentrations – 500 units per milliliter and 1,000 units per milliliter.
Google plans first test of AI chips in space under Project Suncatcher
Alphabet’s Google said on Thursday it will launch a prototype satellite next week in its first in-orbit test of Project Suncatcher, a research effort to explore whether space could potentially host large-scale AI computing infrastructure. Companies including SpaceX and Starcloud are pursuing plans to deploy data centers in low Earth orbit, aiming to harness near-continuous sunlight to power energy-intensive AI computing and sidestep terrestrial constraints on electricity supplies. The new mission, scheduled to fly on SpaceX’s upcoming Transporter-18 rideshare launch in partnership with satellite company Planet Labs, will assess how Google’s AI hardware withstands launch forces, radiation and extreme temperatures in LEO. After the launch, it will send a prototype satellite carrying Google Tensor Processing Units into low Earth orbit to assess if the AI chips can operate reliably in space.
Qualcomm secures extension to global patent licensing pact with Apple
Qualcomm said on Thursday Apple has extended its patent-licensing agreement with the chip designer, even as the iPhone maker looks to cut its reliance on the company’s modem chips. The semiconductor company did not give a timeline for the latest move. The current agreement ends on March 31, 2027, with an option to extend it by two years. Both Apple and Qualcomm did not respond to requests for comment. Even though the deal keeps Apple tied to some of Qualcomm’s patent portfolio, the chip designer had said in July that revenue from Apple products would decline faster than expected. Qualcomm’s licensing business accounted for roughly 15% of total revenue in the June quarter. The company had said it was banking on growth in its data center business to offset the lost revenue from Apple in 2027.