Last updated: September 15, 2026, 2:20 PM ET
Global Bond Selloff Accelerates
A deepening rout in sovereign debt dominated trading as the 10-year Treasury yield climbed to its highest level in almost two decades, driven by surging energy prices, mounting debt loads and persistent inflation. The benchmark yield touched 5.04%, sending equities lower as investors recalibrated for a higher-for-longer rate regime. The key U.S. rate breached levels last seen in 2007, with energy-driven inflation intensifying bond investors' angst. The move rippled across the Atlantic and Pacific, as German and Japanese yields also hit multiyear highs. The 10-year note reached a level recorded only once since the global financial crisis, as investors rebuffed the administration's efforts to sway the bond market. Wall Street is now confronting whether the threshold will break decisively, creating borrowing environments reminiscent of past eras. Strategists warned the S&P 500 could drop 10% as reduced corporate margins hurt profit outlooks. Yields above 5.25% mark an inflection point where stocks and bonds historically reinforce losses in one another, pointing to a regime shift of higher volatility. Traders are already gaming out what a 5% 10-year yield spells for U.S. equities. U.K. gilts joined the global selloff, while U.S. yields cooled slightly after topping 5% as the German Bund yield hit a 15-year high.
Fed Decision Looms Over Markets
Bond traders are pricing in a Federal Reserve rate hike Wednesday with a level of conviction that has proven right for decades. The Fed is expected to raise rates, putting Chairman Kevin M. Warsh at odds with the administration just before the midterms. Stock futures retreated as oil prices continued rising while Saudi Arabia's East-West pipeline stayed shut. U.S. stocks fell at the open after the benchmark yield touched its highest since 2007. The Fed also extended its pause on reserve management purchases to mid-October, signaling policymakers are comfortable with current reserve levels. A federal system used by regulators to monitor banks suffered an outage last month, hitting the National Information Center. Stock investors should root for a rate hike, one strategist argued, as expectations for Fed action drive long-term yields. Bond yields could come down as fast as they climbed once the Fed's path becomes clearer.
Oil and Energy Markets
Oil futures rose amid market pessimism about flows out of the Middle East following the outage of a key Saudi pipeline and the increased Houthi threat to Red Sea shipping. Brent crude climbed to $108 a barrel. Oil rose for a second day as traders weighed disruptions to Middle East supplies with the critical Saudi pipeline still offline. Brent futures rose to $107.59 but remained below Monday's intraday high. Oil hit $109 after Saudi Arabia closed its vital export pipeline, with Riyadh pulling out of regional talks to de-escalate hostilities over the Strait of Hormuz. Crude prices settled higher as the pipeline outage and Houthi advances in Yemen kept supply concerns intact. Russia boosted crude shipments by the most since May as strikes on Saudi infrastructure drove up prices. China's yuan-priced crude futures rallied to the highest level on record as the pipeline shutdown hurt global supplies. U.S. diesel prices hit a fresh record of $6.27 a gallon, boosting expectations of a Fed hike. Oil gained as market stabilizers weakened, with China's imports edging higher and non-OPEC+ supply likely delayed to 2027. Oil executives warned of a great fuel crisis, with Chevron's Mike Wirth saying global supplies are running low. California is a test case for U.S. fuel demand as gasoline and diesel purchases hold up despite soaring prices. French evening power prices neared €300/MWh as low nuclear availability tightened the system.
Equities and Tech Selloff
Tech stocks tumbled after AI leaders called for the industry to slow down, with companies across Asia, Europe and the U.S. posting declines. U.S. tech stocks fell as memory-chip makers and Nvidia slid on safety warnings combined with rising oil prices and higher borrowing costs. U.S. stocks fell after Anthropic CEO Dario Amodei called for a slowdown in AI development. Lopsided tech bets got hit in the AI stock selloff after tech ETFs saw massive summer inflows. U.S. stocks fell as elevated oil prices piled pressure on Treasuries, pushing the 10-year yield to levels last seen 19 years ago. The Nikkei fell 0.2%, dragged by chip-related stocks and trading houses on Iran conflict concerns. Emerging-market stocks and currencies fell for a fourth session as rising global bond yields and oil prices kept riskier assets under pressure. China's AI listings glut dragged Hong Kong stocks lower, highlighting weak global demand for Chinese equities.
Precious Metals and Currencies
Gold traded below $4,300/oz after oil prices and inflation fears drove another rise in bond yields overnight. Gold held a decline as Middle East oil disruptions reinforced expectations the Fed will raise rates this week. The debasement trade is splitting as gold and Bitcoin bets diverge, with both touted as hedges against currency debasement. The Singapore dollar weakened against the greenback as rising Treasury yields improved the appeal of dollar-denominated assets. The Thai baht's decline is set to bolster exports and tourism, two key economic drivers, according to Vice Finance Minister Santitarn Sathirathai. Copper steadied near $14,000 a ton as fresh deliveries signaled an easing supply squeeze.
Deals and Corporate Finance
Brookfield is nearing a recapitalization of Center Parcs valuing the British holiday park operator at about $6 billion. KKR doubled its private investment-grade financing to $80 billion this year, reflecting demand for flexible borrowing. Grab agreed to buy a 60% stake in Atome Financial for $1.49 billion in cash. Sysco is seeking $1 billion in a share sale to partially fund its $29.1 billion acquisition of Jetro Restaurant Depot. Truist Financial inked a deal to sell $5.5 billion of auto loans as it exits near-prime lending. Churchill Downs is seeking $500 million to refinance debt, adding to a rush of risky-loan issuance. Brightshore Capital launched its first real estate debt platform with $250 million in initial capital. Essity is preparing to kick off a sale of its consumer tissue business as soon as next month after Cevian Capital took a stake. Authentic Brands could pursue an IPO as early as the first half of next year. Sagen MI Canada is looking to raise around C$300 million through a bond sale. SB Energy, backed by SoftBank, is aiming to raise up to $500 million in the Japanese portion of its planned U.S. IPO. European exchanges must raise a further $5 billion from IPOs before year-end to surpass last year's haul. Asian private equity firms including Fountain Vest and HSG are circling Alpinestars, the Italian racing gear maker, in a potential €1 billion deal. Apollo-owned Michaels used a $101 million tariff refund to cut leverage.
Credit and Private Markets
Blackstone is working through a backlog of investors seeking to pull cash from its flagship private credit fund, with President Jonathan Gray confident the asset class will recover. Hedge funds are facing scrutiny over their growing Treasury footprint, with the New York Fed asking about potential risks. A pullback by pension funds in Treasurys has created a void filled by hedge funds. Asian high-yield debt has emerged as a surprising global winner in bond markets as cheaper money in China burnishes issuer finances. One fund manager is hunting for the most beaten-down long bonds as investors dump long-term debt. Zorlu Enerji's bond is poised for its biggest drop on record after the Turkish energy company hired debt advisers. S&P warned of rising credit and earnings risks at Indonesian state-owned banks after government-driven lending pushed loan growth to more than twice the industry pace. Moody's agreed to acquire a minority stake in Philippine Rating Services Corp. as it taps Southeast Asian debt market growth. A leveraged ETF buy-and-hold strategy carries unpredictable outcomes, one analysis warned.
Asia and Emerging Markets
Indian bonds slumped after the central bank said it would sell sovereign notes to drain cash, adding supply in a year already pressured by record issuance. India's yield premium over Treasuries hit a 22-year low as August inflation data reduced the scope for the RBI to remain on hold. Japanese government bonds fell after the government was said to be considering a mid-term defense spending target equivalent to 3.5% of GDP. The landmark NSE IPO threatens to hollow out India's shadow market for unlisted shares. Tata Group companies with minority ownership of Tata Sons jumped after the RBI refused to exempt the conglomerate's holding entity from a listing mandate. South Korea's first after-hours session saw erratic, retail-dominated trading. A South Korean hedge fund is urging Samsung Electronics to buy back and cancel preferred shares. Hong Kong's inaugural five-year plan is likely to feature measures promoting wider offshore yuan use. President Prabowo Subianto's economic team overhaul is seen by investors as a signal of a return to more stable policymaking. Stock exchanges and brokers may win from SEBI's proposed closing auction revamp. A company linked to Grupo Traxion's executive president plans a tender offer for up to 100% of the Mexican logistics firm's shares. Venezuela's central bank is squeezing banking system liquidity to support the bolivar ahead of expected spending increases.
Commodities and Industry
China's top steel industry body called on mills to rein in production and reduce inventories as oversupply weighs on the market. Nickel Industries halted the ramp-up of an Indonesian processing plant due to water shortages linked to an El Niño drought. Russia's Nornickel is talking with a new Chinese partner about a copper processing deal that would enable it to shut a polluting Arctic plant. South Korea plans to cut new transmission towers by as much as 40% and put more power lines underground to meet data-center demand.
Legal and Regulatory
A federal judge told Kennedy Center officials he would not approve a plan to inscribe President Trump's name on the building. The Supreme Court blocked the administration's plan to screen mail-in ballots just weeks before the midterms. The justices have rejected presidential initiatives on tariffs, citizenship, the National Guard and now the coming election. President Trump slammed the court over the ruling, saying "these are not the people I interviewed" to serve as justices. A judge blocked a rule limiting the length of stay for international students and journalists, calling the administration's reasons "exceptionally weak." A federal judge dealt a setback to Susquehanna International Group's insider trading lawsuit, denying a request to freeze assets. Prosecutors will not seek the death penalty for Nick Reiner, who is accused of fatally stabbing his parents. A close financial fixer for ousted Venezuelan President Nicolas Maduro pleaded guilty in Miami to money laundering related to food-import contracts and oil sales. Federal prosecutors said two Chinese firms used Binance to launder Iranian oil money to finance terrorism. Prosecutors said around $1.5 billion was sent to Iran through interrelated digital wallets, seeking $61 million in forfeiture. The Treasury sanctioned Russia's VTB Bank over Iran ties, pressuring foreign banks to cut relations. The U.S. also imposed sanctions on VTB as part of Operation Economic Outcast. Glencore accused Radiant World of sending falsified invoices to financial institutions. Radiant World and Sapphire Minmetals filed a $2 billion lawsuit against Glencore in Singapore. Norway charged Telenor with aiding crimes against humanity for handing customer data to Myanmar's military junta. Luxembourg probed Gazprombank ex-managers following an FT investigation into a sanctions-busting trading scheme.
Banking and Financial Services
Santander won a £677 million legal appeal over a PPI mis-selling bill, overturning an earlier ruling in its battle with Axa. KPMG is cutting another 200 jobs in its U.K. advisory business, affecting AI and cyber teams. Revolut handed nearly 700 customers' data to scammers posing as government officials. Vitol paid $75 million to buy out a former trader convicted of corruption, continuing payments after his landmark trial. AXA set new growth targets after years of reorganization. Sullivan & Cromwell hired a team of Kirkland partners in a private equity push, having largely avoided buyout work. Takis Georgakopoulos became Fiserv's CEO just as it confronted major cultural and structural challenges. AI is transforming audit firms including KPMG and EY, though humans remain in the loop. Private equity faces new competition as Michael Dell's family office bested PE giants to take an insurance broker private.
Economy and Trade
U.S. manufacturers are hit by fresh supply chain cost inflation as the Iran war and tariffs push up input prices while the AI boom squeezes component availability. Canada's wholesale sales rose 0.3% in July to C$93.09 billion (US$66.96 billion), Statistics Canada said. Prime Minister Mark Carney is expanding a major investment tax write-off to include oil and gas pipelines, mining property and more. Canada's proposed productivity mega deduction would lower the effective tax rate through immediate expensing of most new assets. Carney pitched Canada as an investment haven to about 100 money managers in Toronto. Carney is gathering top investors to attract more investment and reduce reliance on the U.S. The Dutch government will propose a capital gains levy next year, aligning the Netherlands with most European countries on wealth taxation. Foreign investors are favoring U.S. equities over Treasuries for the first time this century outside the pandemic and financial crisis. The FirstFT newsletter noted U.S. equities eclipsing Treasuries in a rare foreign capital shift. Emerging markets are extending a four-day slide as oil and 5% U.S. yields bite. Rich investors are using BlackRock and Vanguard ETFs to save millions in taxes by avoiding the 30% dividend levy. Mexico is losing high-spending tourists and pivoting to China. Kyrgyzstan's economy grew 11% last year, partly by becoming a conduit for goods flowing into Russia. Chancellor Friedrich Merz promised German motorists relief on surging gas prices.
Energy Transition and Climate
The EPA plans to roll back power-plant emission rules, unwinding Biden-era policies on coal and new natural-gas plants. The Trump administration is scrapping Biden-era climate protections on power plant pollution. Fertiliser exporters outside the Gulf are filling the gap left by the Iran war, easing food crisis fears as supplies through the Strait of Hormuz collapse. Tidal power promises predictable electricity but struggles to scale as backers seek cost reductions. Clean ammonia and methanol are key to reducing shipping's greenhouse gas emissions. Next-generation geothermal borrows oil and gas drilling techniques to tap previously inaccessible heat. Zach Dell is building a $13 billion power network of home batteries to supply the grid during peak demand. Europe risks losing the race for gallium as Metlen warns European buyers favor cheaper Chinese metal. Russia's warship fired flares at a Danish military helicopter, the latest in a string of provocations. Carriers are shifting more containerships through the Red Sea despite Houthi gains.
Technology and AI Regulation
Congress has proposed many AI regulation bills but enacted few, with political disputes stymieing action. The AI regulation debate is creating unlikely alliances, from David Sacks and Lina Khan to Bernie Sanders and Steve Bannon. The Gates Foundation pledged $1 billion to combat AI inequality, investing in projects to bridge social divides. President Trump rejected calls for an AI slowdown, calling safety fears a hoax. Trump pushed back on the need for more AI regulations as the 10-year yield hit 5%. Trump also pushed back on AI industry pleas for guardrails. Trump called Nvidia CEO Jensen Huang onstage in Los Angeles and criticized calls to slow AI development. Jimmy Fallon mocked Trump's AI comments, saying "I don't even think Trump can beat Wordle." OpenAI acquired Glass Imaging, a smartphone camera startup valued above $300 million, founded by former Apple employees. Italian startup Exein raised $270 million to fight AI hackers with AI, developing a foundation model to protect connected devices. AI leaders calling for a slowdown hurt some stocks and helped others as major indexes edged lower. Dario Amodei's essay was gutsy but didn't go far enough, one commentator argued. Experts urged focusing on the humans in charge as AI fears rise. A.I. queries from abroad raised fears of a biological weapons race, with experts calling for stronger safeguards. Universities sounded warnings about AI even as they embrace it. The "But China!" dilemma is driving the AI race as the U.S. weighs regulation against competition. The U.S. also sanctioned a Russian bank while Trump slammed AI guardrails and the EPA moved to cut emissions limits.
Politics and Policy
A new poll shows Democrats have midterms momentum as Trump calls AI fears a hoax. President Trump's efforts to restrict mail voting were thwarted by the Supreme Court but have sown confusion among voters. Trump's effort to assert control over elections continues despite the Supreme Court loss. A whistle-blower said federal agents may have broken state laws searching for voter fraud. Groups are preparing thousands of poll watchers for November midterms, with some conditioned to expect bad behavior. Senator Mitch McConnell returned to the Senate after a 13-week absence following a health incident. Gavin Newsom said he won't run in 2028 if Kamala Harris does. New York Democratic House candidate Christopher Gallant acknowledged bondage photos that surfaced in media reports. Steve Kolb, head of the CFDA, was placed on leave after a PETA protester confrontation. President Trump's distortions have an impact far beyond belief in his claims. The more capitalism pervades life, the less room for compassion, honor or heroism, one essay argued. Immigration has become a prism through which Europe's ills are viewed. Trouble in Paradise examined three stories from inside the immigration crackdown. Lawyers say the U.S. is redacting documents proving immigrants' legal status.
Geopolitics and Conflict
Saudi Crown Prince Mohammed bin Salman met Abdel Fattah al-Sisi for security talks after 13 were injured by drones and missiles. The Houthis reported deadly Saudi airstrikes as the kingdom issued mass alerts. The Houthis are increasingly using AI and other tools to produce advanced weaponry, reducing reliance on Iran. Gulf Arabs are seeking options after U.S. bases failed to deter Iran, hoping direct talks could help. Ukraine and Russia denied Trump's claims of an energy truce, with the Kremlin saying any deal would have little effect on fuel markets. Trump blamed Ukraine for the global diesel shortage, saying its attacks on Russian refineries were "hurting the world." The Iran war has left the U.S. with a munitions shortfall, the Pentagon watchdog warned, after $22 billion was spent on ordnance in four months. The U.S. has deployed weapons in space, Air Force Secretary Troy E. Meink said, the first public acknowledgment. The U.S. military revealed it has space weapons, with experts warning of proliferation. Trump's Venezuela oil deal is either deeply flawed or too big to fail, as energy executives try to understand the implications. Poland lost $230 million trying to buy Venezuelan oil with crypto, one of its biggest scandals. China tightened control of overseas travel in a sweeping new law to secure state secrets and skilled workers. Rising fuel prices set off anger and protests from Indonesia to Guatemala to Syria. Japan's easy-money architects are changing their minds as the Bank of Japan weighs another rate increase. Traders are at odds with the ECB and BOE on how far rates will rise. A Russian businessman with Putin ties paid for Donald Trump Jr.'s wedding party, totaling hundreds of thousands of dollars. The Morning Risk Report covered U.S. sanctions on a Russian bank, Trump's AI comments and EPA emissions cuts.
Media, Entertainment and Culture
Apple won the most Emmys this year, breaking HBO and Netflix's two-decade chokehold on the awards. "Widow's Bay" dominated the 2026 Emmys with 14 wins, including best comedy, lead actor, writing, directing and supporting categories. The full winners list from the 78th Emmy Awards was released. Three writers assessed the Emmys, asking whether peak TV has been reached. The best and worst moments from the telecast hosted by Mariska Hargitay included plenty of history and cringe. The red carpet featured bold colors and smart takes on classic suiting. Red carpet photos captured all the looks from the 78th Emmy Awards. Readers joined a discussion on the red carpet fashion. The Observer raised £10 million in a boost to its turnaround, with the Scott Trust opting not to participate. Bob Mackie, the designer who dressed every spangly woman in show business, died at. Mackie's life in pictures included flashy designs for Cher, Diana Ross and Tina Turner. Cher's 1986 revenge dress with Mackie made waves at the Oscars. Rolex launched its latest Padellone watch in Milan, choosing the Italian city fast becoming a watch-world destination. LVMH's Frédéric Arnault said Loro Piana won't sell more €1,000 loafers, prioritizing scarcity over growth. Hong Kong launched a dog-friendly dining scheme with 1,000 permits, ending a decades-old prohibition. JLR is pitching the revamped Defender to NATO military budgets. Hyrox's new owners hope to turn burpees into billions, with clothing and travel as expansion areas. Dave & Buster's swung to a $12.5 million quarterly loss as entertainment sales kept falling. CVS is accelerating its clone strategy while Target concluded a two-year search for a marketing chief. Retail executives discussed their thinking on the holiday shopping season. Chefs shared 2026 dining trends including GLP-1s, AI and early reservations. Nine fleeting moments made scouting the 50 best restaurants of 2026 memorable. The NFL's Sunday Ticket is getting smaller but not cheaper as more games move beyond Sunday afternoon.
Corporate and Legal Briefs
A Thai beer empire heir accused his brother of sexual abuse, prompting a rare public reckoning. Jamie Beaton holds 12 advanced degrees from Harvard, Yale and Oxford, with more on the way. Sanjeev Gupta's heart condition delayed the Greensill trial, with medical reports saying long-haul flights would affect his health. BPRE's NAV discount widened post-listing, highlighting private marks versus public markets. Metlen's chair warned Europe risks losing gallium supply. Dangote Petroleum Refinery's IPO could draw millions of Nigerians to the stock market with a low entry price. FTSE 100 CEO pay rose 10% to a record £5.1 million average. Oxford spin-off built low-cost jet engines for drones with Ministry of Defence backing. Driscoll's gave China its blueberries, then China swiped the growing secret, prompting undercover investigations. Self-employed workers found rewards and challenges building their own businesses. Auto and transport market talk covered global sales, Volkswagen and Renault. A separate auto roundup also covered Volkswagen and Renault. Energy and utilities market talk covered European oil stocks and SK Innovation. Tech, media and telecom market talk covered European semiconductor companies, Vodafone and LG Electronics. The Treasury Secretary testified on the economy and the Iran war. The FT's live Q&A asked what British businesses need from the Budget. Readers were invited to submit questions about AI. The Help to Buy scheme was found to be "very high value for money" in an official review.