Public Markets 8 Hours

Last updated: September 14, 2026, 10:45 PM ET

Bond Markets Rocked as 10-Year Treasury Yield Touches 5%

The 10-year Treasury yield briefly touched 5% for only the second time since the global financial crisis, as investors rebuffed the Trump administration's efforts to sway the bond market. The benchmark yield cooled after reaching multiyear highs on Monday, with German Bund yields simultaneously hitting a 15-year high as investors grappled with rising borrowing costs amid energy-market volatility. Wall Street is now confronting whether the 10-year note will decisively break through the threshold, potentially creating borrowing environments reminiscent of past eras. The move came as Asian bonds tracked Treasuries lower, with higher energy prices fueling inflation concerns and strengthening bets on a Federal Reserve rate hike as soon as this week.

Fed Policy and Rate Expectations

The Federal Reserve said Monday for the second straight month it won't buy Treasury bills for reserve management purposes in the upcoming period, signaling policymakers are comfortable with current reserve levels. Potential rate hikes starting this week could spur a 10% correction in the S&P 500 as reduced corporate margins hurt profit outlooks, according to MRA strategist analysis. The yield surge has intensified scrutiny of hedge funds, which have filled a void left by pension funds pulling back from Treasurys, prompting the New York Fed to inquire about potential systemic risks.

Oil Markets and Inflation Pressures

Oil prices hit $109 per barrel after Saudi Arabia closed a vital export pipeline, with Riyadh pulling out of regional talks to de-escalate hostilities over the Strait of Hormuz following a drone attack last week. A critical Saudi pipeline remains offline, keeping traders focused on Middle East supply risks. Crude oil extended its rally as market stabilizers appear to be weakening, with China's crude imports edging higher and non-OPEC+ supply outside the Middle East unlikely to come online until 2027, according to Commonwealth Bank of Australia. Oil executives including Chevron's Mike Wirth are warning of a great fuel crisis, saying global supplies are running low with no respite in sight, even as Trump officials maintain the disruption is temporary.

Diesel Shortage and Geopolitical Blame

President Trump blamed Ukraine for a global diesel shortage, saying Kyiv's attacks on Russian oil refineries were "hurting the world," amid an energy shock driven primarily by the U.S.-Israeli war with Iran. Analysts say the Iran war is probably a bigger factor in driving diesel prices higher than Ukrainian strikes on Russian refining capacity.

Gold Under Pressure

Gold traded below $4,300 an ounce after oil prices and inflation fears drove another rise in bond yields overnight. The metal held its decline as increasing disruptions to Middle East oil flows reinforced expectations the Federal Reserve will raise interest rates as soon as this week.

Equities: AI Slowdown Fears Hit Tech

U.S. stocks fell sharply after Anthropic CEO Dario Amodei called for a slowdown in artificial-intelligence development, compounded by another increase in oil futures that triggered interest-rate worries. Tech stocks tumbled globally, with companies at the forefront of AI in Asia, Europe and the United States posting declines after tech leaders expressed worries about the safety of "frontier" AI technology. Global AI stocks slid, with memory-chip makers and Nvidia falling on Wall Street as warnings combined with rising oil prices and higher borrowing costs. AI leaders calling for a slowdown hurt some stocks and helped others, with major U.S. indexes edging lower.

Trump Dismisses AI Safety Concerns

President Trump called Jensen Huang while the Nvidia chief executive was onstage in Los Angeles, criticizing calls to slow down and regulate AI. Trump rejected calls for an AI slowdown, calling risks "a hoax," while the EPA moved to erase limits on climate pollution from power plants. The president pushed back on the need for more AI regulations, even as the 10-year Treasury yield hit 5%. Trump also pushed back on AI industry pleas, with Treasury yields fading after touching 5% and oil prices continuing to climb. A Dario Amodei essay on AI slowdown was gutsy but didn't go far enough, as America's AI bosses can only do so much on their own. Experts suggest focusing on the humans in charge rather than doomsday scenarios, urging lawmakers to act now. AI queries from abroad are raising fears of a biological weapons race, with experts saying newer biology-trained models may need stronger safeguards.

Asian Markets and Regional Developments

Japanese stocks fell in early trade, with the Nikkei dropping 0.2% on concerns about the Iran conflict and higher energy costs weighing on chip-related stocks and trading houses. South Korea's main stock exchange saw volatile trading in its first after-hours session, with erratic and retail-dominated activity signaling challenges ahead as the bourse seeks to attract more global investors.

India: NSE IPO and Market Structure

The landmark NSE listing is set to deliver a major boost to India's primary market but will deal a significant blow to the booming trade in unlisted shares. Stock exchanges and brokers may be among the biggest beneficiaries of SEBI's proposed changes to the newly launched closing auction system that has caused chaos.

Asian Credit and Currency

Asian high-yield debt has emerged as a surprising global winner in bond markets as ever-cheaper money in China burnishes issuer finances. Measures to promote wider offshore use of the yuan are likely to feature prominently in Hong Kong's inaugural five-year plan, along with new financial products including commodities futures.

Corporate News: Samsung, Sysco, Apollo, Authentic Brands

A South Korean hedge fund is urging Samsung Electronics to buy back and cancel preferred shares, becoming one of the first shareholders to directly press for the step in hopes of boosting valuations. Sysco Corp. is seeking to raise $1 billion in a share sale to partially fund its $29.1 billion acquisition of Jetro Restaurant Depot LLC. Apollo Global Management-owned retailer Michaels Cos. used a $101 million windfall from tariff refunds to help cut its leverage. Authentic Brands Group, licensor of everything from Elvis Presley's image to Reebok, could pursue an IPO as early as the first half of next year while targeting the creator economy.

More Deals and Financing

Kentucky Derby operator Churchill Downs Inc. is seeking to raise $500 million to refinance existing debt as maturities loom, adding to a rush of firms tapping the market for risky loans. In the auto sector, Volkswagen and Renault were among companies featured in the latest market talk covering auto and transport.

Canada Courts Global Investment

Canada Prime Minister Mark Carney gathered some of the world's top investors Monday night and Tuesday as he seeks to attract more investment into the country while reducing its reliance on the U.S.

Sanctions and Geopolitical Risk

The U.S. imposed sanctions on VTB Bank over its ties to Iran, targeting a bank already under U.S. sanctions as part of the Trump administration's Operation Economic Outcast initiative. Treasury added sanctions on Russia's VTB Bank in a bid to pressure foreign banks to cut ties with the institution. The U.S. military acknowledged for the first time that it has weapons in space, with security experts warning the announcement could result in proliferation of weapons by other governments.

Indonesia and Emerging Market Politics

President Prabowo Subianto's economic team overhaul is seen by investors as an acknowledgment that his policies have come at a cost and a signal of a return to more stable policymaking.

Trump Administration: Legal and Political Developments

A federal judge blocked a Trump rule aimed at limiting the length of stay for international students and journalists, with Judge F. Dennis Saylor IV writing that the administration's reasons were "exceptionally weak." Trump's effort to assert control over state-run elections continues despite court losses, sowing doubt about outcomes. A whistle-blower said federal agents may have broken state laws in searching for voter fraud, expressing concern about being directed by Homeland Security leaders to use private information to look up voter records. Immigrants' lawyers say the government is redacting documents proving legal status, withholding records many noncitizens need to resist deportation.

EPA Rollback and Climate Policy

The EPA will roll back power-plant emission rules, unwinding Biden-era policies to crack down on pollution from coal and newly built natural-gas-fired plants. The move continues the dismantling of environmental protections during Trump's second term as he boosts the fossil-fuel industry.

Politics: Newsom, McConnell, Trump Jr.

California Governor Gavin Newsom said he won't run in 2028 if Kamala Harris does, comments that seem to fly in the face of his presidential ambitions. Senator Mitch McConnell returned to the Senate after a more than 13-week absence following a health incident, fueling questions about his ability to continue serving. A Russian businessman with Putin ties paid hundreds of thousands of dollars for Donald Trump Jr.'s wedding party, an extraordinary flouting of ethical norms.

Corporate Governance and Legal

The Council of Fashion Designers of America placed its chief executive, Steve Kolb, on leave "pending a full review" of a physical confrontation at the Cos fashion show. European payments group Revolut handed nearly 700 customers' data to scammers, contacting clients whose IDs, addresses and other details were given to hackers posing as government officials.

Consumer and Retail

Dave & Buster's swung to a loss of $12.5 million in the most recent quarter as entertainment sales kept falling and the company struggles to regain relevancy. Hong Kong launched a dog-friendly dining scheme with 1,000 permits, ending a decades-old prohibition welcomed by owners but prompting disquiet from some patrons. Driscoll's expansion into China ignited local competition and widespread intellectual-property theft, with private investigators going undercover at nurseries. Self-employed workers who forgo traditional career paths find both rewards and challenges in building their own businesses.

Media, Culture and Entertainment

The 78th Emmy Awards winners list is being updated as awards are announced. Stars arrived on the red carpet in Los Angeles for TV's biggest night. Designer Bob Mackie, known for sequined gowns and outrageous costumes that threw clouds of glitter at American fashion for over half a century, died at. Mackie's bedazzling creations made waves onstage, including at the 1986 Oscars. A life in pictures retrospective captured the designer's flashy, sparkly designs for Cher, Diana Ross, Tina Turner and countless others.

New York Politics

Christopher Gallant, a Democratic House candidate running against Representative Nick LaLota on Long Island, acknowledged that bondage photos that surfaced in media reports were legitimate.

Analysis and Commentary

A New York Times analysis asks why American elites who could afford to stand up to Trump didn't, arguing that the more the logic of capitalism pervades life, the less room there is for compassion, honor or heroism.