Public Markets 24-Hour Briefing

Last updated: October 16, 2026, 10:40 PM ET

Oil & Energy

Brent crude climbed to $110 a barrel for the first time since May as prospects for imminent supply disruption intensified. The Financial Times reported that oil hit a five-month high after reports of new escalation in the Middle East. Diesel remains a particular pressure point, with Exxon signaling record refining earnings as diesel prices soar, while diesel prices stay high amid historically low inventories. Crude futures rose on persistent supply jitters, although oil prices fell as traders weighed International Energy Agency reserve releases. Shipping fuel remains tight, as the ship-fuel squeeze persists despite more Hormuz crude. China is building a gas buffer for winter as the Iran war heightens risk, and fuel-price surges are boosting EV sales and ending the diesel era in Europe.

Equities & the AI Trade

A broad selloff in AI-linked shares dominated the week. Wall Street's worst week since June saw stock rout sweep from Core Weave to Alphabet, and the S&P 500 posted its biggest weekly loss since June as AI fears hit chipmakers. Big Tech stocks suffered their biggest weekly drop since "liberation day", while Chinese stocks became the biggest losers as the global AI trade faltered. Tech stocks fell as oil rose after a volatile week, and Wall Street anxiety spread as the AI rout met a $110 oil shock. Big US bank stocks logged their worst weekly losing streak since 2008. Indian software shares outperformed AI peers by the most on record, and India IT gained favor as an anti-AI bet. Investors are also hedging AI risk, and Asia stocks recovered some ground after the tech rout.

Rates, Currencies & Bonds

Investors pared rate-hike bets after Federal Reserve Chair Kevin Warsh declined to guide on the next move, and Warsh vowed to tame inflation even as AI delivers a shock to the economy. The dollar had its worst week in a month with Warsh quiet on the rate path, while the euro snapped a five-week losing streak. US bonds fell as the Treasury stayed silent on the long end, and Treasury yields stabilized in Asian trade. The US budget deficit nears $2 trillion, a reality check on Trump's cost cutting. In France, a political crisis is turning into a debt crisis. Credit markets are also under strain, with data centre bonds selling off and mortgage bond sales on hold as investors demand more yield. Bank of America sold $8 billion of bonds despite volatility, and Japan's Ueda said he "can't tolerate" underlying inflation above 2%.

Corporate & Deals

Apple's foldable iPhone Duo sold out almost immediately, with deliveries slipping to 2027. Netflix cut 1,000 jobs and made a sudden leadership change despite strong results. Tesla debuted its flying Roadster, though the launch drew a cool reception. Alcoa posted higher profit on improved conditions, and DHL raised its 2026 earnings outlook. Schneider Electric boosted its outlook as data-center demand lifted sales. Oaktree's deal to buy an A-Cap insurer collapsed, and Kimberly-Clark readied a bond sale ahead of its Tylenol maker purchase. Lufthansa is exploring a €1bn sale of software assets. Beretta acquired a 25% stake in Sturm Ruger, and Compass sued California's listing service over its rules.

Policy & Trade

France and Germany struck a deal to protect Europe's car industry, easing EU emissions rules and opening a door for the UK. Carmakers face a smaller cut in UK EV sales targets. China will restrict exports of several solar technologies, and draft export controls on AI chips were unveiled. Metals and autos tariffs stalled US-Mexico trade talks. Healey signaled a bank tax raid in the Budget, and Healey backed the Heathrow runway despite Burnham's wavering. Apple faces a UK legal fight over tap-to-pay rules.

Coming Up

The Federal Reserve's policy path remains open, as Warsh has declined to guide on the next move. The UK Budget is expected to bring a tax raid on banks.