1. Japanese markets close at record highs amid mixed trading in Asia-Pacific
Japan’s Nikkei 225 notched a fresh record Thursday at 45,754.93, marking six consecutive sessions of gains. The broad based Topix also closed at a new high of 3,185.35. Other Asia-Pacific markets traded mixed Thursday, breaking ranks with Wall Street after investors continued selling tech names like Nvidia and Oracle for a second straight day. Nvidia slid almost 1%, continuing its declines from Tuesday as heightened fears about the potentially circular nature of the AI industry drew investor scepticism. Hong Kong’s Hang Seng Index fell 0.13%, closing at 26,484.68. On the mainland, China’s CSI 300 advanced 0.6% and closed at 4,593.49.
2. Stocks close lower for a third day as once-hot AI play Oracle falls, yields increase
All three major U.S. indexes ended Thursday in the red, bogged down by a further pullback in Oracle, as well as a jump in rates. The S&P 500 closed down 0.50% at 6,604.72, as did the Nasdaq Composite, which settled at 22,384.70. The Dow Jones Industrial Average shed 173.96 points, or 0.38%, to finish at 45,947.32. Oracle slid 5%, putting the stock on track to post a third straight day of losses, as questions over the state of the artificial intelligence trade lingered. The market action appears to be reflecting concerns about record-high valuations and potentially risky circular relationships in the AI industry after some recent deals.
3. Gold pares gains as weekly jobless claims fall, investors eye key inflation report
Gold pared earlier gains on Thursday after U.S. weekly jobless claims unexpectedly declined, while investors awaited key inflation data that could shape the Federal Reserve’s next interest rate moves. Spot gold was up 0.1% at $3,739.42 per ounce, after rising as much as 0.6% earlier in the session. Prices hit a record high of $3,790.82 on Tuesday. U.S. gold futures for December delivery settled 0.1% higher at $3,771.1. The number of Americans filing new applications for unemployment benefits fell last week, but the labour market has lost its lustre amid an anaemic pace of hiring. Meanwhile, the U.S. economy grew faster than previously thought in the second quarter. Markets currently see a 85% probability of a Fed rate cut in October, down from 90% before the release of the jobs data, according to the CME FedWatch tool.
4. Oil eases as investors reassess Fed rate cut expectations
Oil prices eased on Thursday, as new U.S. economic data tempered optimism around further interest rate cuts. Brent futures were down 6 cents, or 0.09%, at $69.25 a barrel by 1:47 p.m. ET. U.S. West Texas Intermediate futures lost 12 cents, or 0.18%, to $64.87. Both benchmarks gained 2.5% on Wednesday to reach their highest since August 1, driven by a surprise drop in U.S. weekly crude inventories and concerns that Ukraine’s attacks on Russia’s energy infrastructure could disrupt supplies. U.S. gross domestic product increased at an upwardly revised 3.8% annualized rate last quarter, the Commerce Department’s Bureau of Economic Analysis said in its latest estimate on Thursday. Price pressure also came from bearish expectations on supply fundamentals, with more oil expected soon from Iraq and Kurdistan.
5. Trump approves TikTok deal through executive order, Vance says business valued at $14 billion
President Donald Trump on Thursday signed an executive order approving a proposal that would keep TikTok alive in the U.S. in a transaction that Vice President JD Vance said values the business at $14 billion. The deal satisfies the requirements of a national security law requiring China-based ByteDance to sell TikTok’s U.S. operations or face an effective ban in the country, according to the executive order. Under the terms, which China must still approve, a new joint-venture company will oversee TikTok’s U.S. business, with ByteDance retaining less than a 20% stake. Enterprise tech giant Oracle, Silver Lake and the Abu Dhabi-based MGX investment fund will be main investors in TikTok’s U.S. business, controlling a roughly 45% stake in the entity, while ByteDance investors and new holders will own 35%, media reported earlier Thursday.
6. Jobless claims tumble to 218,000, well below estimate despite fears of labour market weakness
Initial claims for unemployment insurance were well below expectations last week, helping to douse caution at the Federal Reserve and elsewhere that the labour market is in danger. First-time filings for the week ended Sept. 20 totalled a seasonally adjusted 218,000, down 14,000 from the prior week’s upwardly revised figure and significantly less than the Dow Jones consensus estimate for 235,000, the Labour Department reported Thursday. Continuing claims, which run a week behind, were little changed, falling 2,000 to 1.926 million. The release comes just a week after the Federal Reserve voted to lower its benchmark borrowing rate by a quarter percentage point to a range of 4%-4.25%.
7. Swiss central bank says tariffs are a ‘major challenge’ as deal with U.S. remains elusive
The Swiss National Bank said Thursday that tariffs on goods to the U.S. present a “major challenge” for exporters, with its economy set to take a hit. The country has swallowed some of the highest duties imposed by President Donald Trump’s administration, with a 39% tariff rate implemented in August. It came after a Swiss delegation led by the country’s President Karin Keller-Sutter failed to secure a trade deal after meeting with Trump in Washington D.C. “The U.S. tariffs present a major challenge for affected companies and are likely to dampen economic activity,” Swiss National Bank Chairman Martin Schlegel said in a press conference following the central bank’s latest interest rate decision.
8. U.S. expands tariff dragnet to masks, syringes and robotics in sweeping import probe
The Trump administration has launched national security investigations into imports of robotics, industrial machinery and medical devices, a move that could pave the way for fresh tariffs and raise costs for consumers, hospitals and manufacturers. The Department of Commerce said Wednesday that the probes, opened Sept. 2 under the “Section 232” of the Trade Expansion Act, will assess whether such imports threaten U.S. national security, according to Federal Register filings. The latest probes expand the list of items that could be exposed to higher tariffs to include personal protective equipment such as surgical masks, N95 respirators, gloves and other medical consumables, including syringes, needles and prescription drugs. The probes could be used as justification for fresh sectoral tariffs aimed at boosting domestic production of goods deemed critical to national security.
9. Global debt hits record of nearly $338 trillion, says IIF
Global debt hit a record high of $337.7 trillion at the end of the second quarter, driven by easing global financial conditions, a softer U.S. dollar and a more accommodative stance from major central banks, a quarterly report showed on Thursday. The Institute of International Finance, a financial services trade group, said that global debt rose over $21 trillion in the first half of the year to $337.7 trillion. China, France, the United States, Germany, Britain, and Japan recorded the largest increases in debt levels in U.S. dollar terms, though some of that was due to a waning dollar, the IIF found. The U.S. currency has weakened 9.75% since the start of the year against a basket of major trading partners.
10. Trump slaps 100% duty on pharma imports amid flurry of tariff announcements
U.S. President Donald Trump on Thursday evening announced a slew of new trade tariffs, most notably a 100% levy on the import of pharmaceutical products. The levies also include a 25% tariff on heavy truck imports, a 50% tariff on kitchen and bathroom fittings, and a 30% tariff on upholstered furniture. Trump said they will take effect from October 1. Trump said in a social media post that the pharma tariffs will apply to any “branded or patented Pharmaceutical Product.” But he added that any companies building manufacturing plants in the U.S. will be exempt from the tariffs, specifying that the companies needed to have at least broken ground or started constructing U.S. facilities. Trump had repeatedly threatened to tariff pharma imports since taking office at the beginning of the year, and had also instructed his administration to conduct a national security review of the sector.
11. Former Fed, Treasury chiefs urge Supreme Court to block Trump firing Lisa Cook
Every living former chair of the Federal Reserve, as well as a slew of ex-Treasury secretaries and former White House economic advisors, urged the Supreme Court on Thursday to block President Donald Trump from firing Fed Governor Lisa Cook as her lawsuit challenging her removal proceeds. The signers said in a legal brief, “The independence of the Federal Reserve, within the limited authority granted by Congress to achieve the goals Congress itself has set, is a critical feature of our national monetary system.” “Allowing the removal of Governor Lisa D. Cook while the challenge to her removal is pending would threaten that independence and erode public confidence in the Fed,” the amicus brief said. Signers of the brief included the former Fed chairs Alan Greenspan, Ben Bernanke, Janet Yellen.
12. Intel approaches TSMC for investments or partnership, reports
Chipmaker Intel has approached Taiwan Semiconductor Manufacturing Company about investments in manufacturing or partnerships, media reported on Thursday, citing people familiar with the matter. The development follows a Bloomberg report on Wednesday that said Intel was in talks with Apple about securing an investment in the struggling chipmaker. Intel’s efforts to get outside investment began before U.S. President Donald Trump showed an interest in the company last month, WSJ said, but have gone into overdrive since the U.S. took a 10% stake in it. Last week, Nvidia announced it would invest $5 billion in Intel for a roughly 4% stake in the company. The chipmaker also got a $2 billion capital injection from SoftBank Group in August.
