Public Markets 24-Hour Briefing
×Last updated: October 14, 2026, 11:47 PM ET
Equity Markets & Risk Sentiment
US stocks slid after a hot inflation report bolstered the case for another rate increase, while the S&P 500 fell 1.1% on Wednesday, its steepest drop in more than two months. The session marked the worst day for equities since July as rate-hike expectations for October reset. The S&P 500 also ended its longest calm streak since 2020 as the AI trade weakened, and the Russell 2000 entered a correction, falling 11% from its peak as rising interest rates weighed on smaller companies. Stocks turned lower as AI and tech shares slumped, with the Nasdaq bearing the brunt of the declines.
Asia & Global Selloff
The Nikkei fell 2.9%, tracking Wall Street's overnight losses. A rout in global technology hardware extended into Thursday, with Samsung and SK Hynix leading the KOSPI lower, and the selloff spread across Asia after chip stocks tumbled on Wall Street. US chip stocks slid as inflation and AI debt fears unsettled investors. TSMC's results face a high bar to calm AI stock jitters, as strong earnings from global chip majors have failed to boost the AI trade. Meanwhile, ASML said AI demand will exceed supply for two more years, a reminder of the underlying strength in the sector even as sentiment wavers.
Fixed Income & Rates
Treasuries rallied across the curve as the equities selloff spurred haven demand, though they recovered most of their post-CPI losses as stocks fell. US mortgage rates reached 7.5%, pushing home purchasing activity into a sixth week of decline. Fed Governor Bowman said inflation remained above goal but that there was no urgency to act. A forecaster who was early to call the last hike now sees the Fed potentially raising rates half a point in December. Japanese banks are returning to domestic bonds as yields surge, and Japan's Finance Minister Satsuki Katayama renewed warnings to speculators after US CPI heated up. The dollar climbed to its highest level since May 2025 on Fed hike views, following a hot September inflation print that pushed Treasury yields higher. In Australia, higher unemployment and unexpected job cuts led traders to pare rate bets.
Inflation & Energy
US inflation rose to 3.7% in September on broad price gains, with higher energy prices driving the spike ahead of the midterms. Gas prices are up 34% from a year ago as the war with Iran lifts energy costs. Grocery prices are set to climb as fuel and freight costs surge, and nearly half of Americans report that rising costs have pushed necessities out of reach. The Social Security COLA for 2027 will be 3.6%. Oil prices rose as Iran stepped up attacks, and a cargo ship sank in the Strait of Hormuz after a strike. The IEA warns diesel prices will rise again globally, with the shortage lasting until mid-2027. European refinery margins have collapsed as input costs soar, and UAE output climbed to record levels in September. Gold held losses as hot inflation lifted October rate-hike bets, while Bitcoin slid toward the lower end of its recent range.
Banks & Financials
Bank of America reported a 17% profit drop after a $1.2bn money laundering fine, and the stock shed $22bn in value as lapses came to light. Wall Street worries the problems will linger, while Morgan Stanley's profit climbed. Goldman Sachs topped rivals in third-quarter share sale revenue, and the AI boom is supercharging investment banking results. BlackRock's assets hit a record $15.5tn on $205bn of inflows. Perella Weinberg and Piper Sandler abandoned merger talks. Fairfax Financial is buying a majority stake in India's IDBI Bank, and Kraken's owner agreed to buy Lithuania's Saldo Bank. Lonza raised its midterm profit goals after a unit sale.
Tech, AI & Corporate Deals
Apple closed above the $5 trillion mark and joined Nvidia in the club. Anthropic told investors quarterly revenue rose 50% to $16.8bn ahead of its IPO, though growth was slower than some anticipated. OpenAI alleges an employee sent secret device information to Apple. CoreWeave's bonds have plunged to distressed levels, drawing a "Yikes" from Musk. Netflix cut about 1,000 jobs, its biggest cuts since 2022, as growth slows. Berkshire Hathaway added $330mn to its stake in Bending Spoons. GlobalFoundries plans two New York chip plants with up to $21bn in funding. American Electric Power will invest about $4bn in a Wyoming fuel cell project to meet Google's demand. Harley-Davidson is gaining share through nostalgia-driven reissues.
Deals, Capital Markets & Private Markets
Lufthansa won a battle to buy a stake in Portugal's TAP, beating Air France-KLM with a bid of up to €1.2bn. General Atlantic plans an early 2027 IPO at up to a $10bn valuation. Cboe received approval to offer KPI prediction-market bets via Robinhood. Galderma agreed to buy ZO Skin Health for $1.5bn. Olympus shares suffered their biggest drop since 2011 after an FDA warning. Mercuria agreed a $250 million Congo copper deal with a Chinese miner. Dubai Aerospace is seeking a $2.1bn loan led by Asian banks. Lenders sued Altice International in the latest escalation of a long-running dispute. BlackRock, Pimco and Sona tapped counsel over a Virgin Media-tied deal. Moody's warned that US private credit defaults are understated by PIK use. Canadian lender Cash Today faces scrutiny as 44,000 loans vanish. MTA cut bond refinancing by 40% as yields climbed.
Commodities & Metals
Copper edged lower after BHP's Escondida mine averted a strike. Zambia said some copper sales to China will be settled in renminbi, and Zambia and IRH reaffirmed their partnership. Bolivia revamped gold export rules to attract dollars. Gold Fields is courting Northern Star investors for its $3.9bn bid. Soaring oil freight threatens fuel supply, and Saudi Aramco's new China refinery received its first crude cargo.
Emerging Markets & Global Policy
China's exports surged, putting its trade surplus on track for a record, while hidden bond buying through Canada has sparked talk of a $600bn buildup. Mauritius extended its curfew for a second night after unrest. Turkey is letting the lira slide faster to avoid future devaluation risk, and Turkish authorities seized the country's most-watched news channel. India's RBI signaled more steps to curb forex speculation, and SEBI proposed a rule overhaul to boost small listings. Canada aims for an India trade deal by year-end. Venezuela's top lawmaker had sanctions lifted by Washington. Moody's says South Africa is on track for a rating upgrade. Chile's pension fund losses drew fire from lawmakers. Botswana was picked as host for the southern African portion of the Dangote Refinery IPO.
Markets Commentary & Analysis
Quant funds are increasing US stock exposure as discretionary investors retreat, leaving fast-money models at odds with fundamental investors. Fund managers are bullish, which may be a warning sign. A top trader has emerged as the most successful player in Kalshi markets on economic data. Europe's defence stocks have sent a geopolitical distress signal. Litigation finance has had a difficult year, and Oasis increased its Nidec stake to become the largest shareholder. Stock market today saw investors await the inflation report and bank earnings.
Corporate & Legal
Sazerac has become the largest US spirits producer and has bid for Brown-Forman. Freshfields partners explored a carve-out of an AI unit worth billions. A celebrity lawyer was accused of participating in the "outright plunder" of BHS. A woman admitted trying to scam Wes Edens for $1.2bn. 777 Partners' co-founder is set to change his plea. Trump's ban on CNN, Politico and MS NOW was blocked by a judge. EU accepted Sanofi's concessions to end an antitrust probe. Swisscom won its appeal against a Swiss antitrust fine. Bank of America agreed to pay $1.2bn to settle money laundering and sanctions violations. German prosecutors accused a Ukrainian ex-officer in the Nord Stream sabotage case.