Public Markets 24 Hours

Last updated: September 25, 2026, 6:00 AM ET

Global Equities and Bond Yields

Global equity markets navigated a turbulent week marked by a sharp selloff in sovereign debt and fluctuating commodity prices. European shares advanced for the first weekly gain in four weeks as bond yields stabilized and oil prices pulled back. In the United States, stocks climbed back to par despite persistent volatility, while the Nikkei rose 0.5%, led by financial stocks following sharp gains in local bond markets. However, the robust U.S. economy powered through rate increases and rising bond yields, complicating the Federal Reserve's policy outlook.

The bond market experienced a dramatic Rout, with U.S. long-term borrowing costs touching the highest level since 2004. The 10-year Treasury yield surpassed 5%, a level not seen in decades, triggering a global bond sell-off that spread to Asian debt markets. Municipal bond yields surged past 5%, eroding returns in state and local government portfolios. A bond bombshell in the FT highlighted how borrowing costs moved abruptly higher, straining public finances across developed nations. The Treasury Rout threatened emerging market carry trades as Citigroup pulled back from arbitrage strategies.

Commodities and Energy Markets

Oil prices fell Friday after rising sharply in the previous session, as U.S.-Iran diplomacy and regional tensions remained in focus. Crude pulled back as traders weighed reports of a potential phased deal between Washington and Tehran. Despite the retreat, oil post gains on escalation concerns, with futures rising for a second straight session amid Houthi attacks on shipping in the Red Sea. The conflict in the Middle East and rising yields weighed on U.S. stocks.

Gold fell amid expectations for a Federal Reserve rate increase, settling 0.4% lower for a fourth-consecutive session. The precious metal tilted lower as elevated energy prices and inflation concerns persisted. However, one hedge fund with a 235% return argued the gold decline was temporary, suggesting the drop was overdone. Grains slumped after the Trump-Xi summit lacked broader trade details, leaving agricultural purchase plans uncertain.

Currency Markets and Monetary Policy

The dollar headed for its best two-week stretch in six months, in a reversal of earlier sentiment. The yen headed for its biggest daily gain in more than two weeks after Finance Minister Satsuki Katayama signaled intervention risk. The yen strengthened after Trump raised concerns about yen weakness during talks with Japan's finance minister. Goldman Sachs reversed its yen forecast, now expecting the yen to appreciate to 150 per dollar. Asian currencies consolidated against the dollar in early trade with Treasury yields hitting new highs.

Asian Markets and Regional Developments

Asian bond yields rose despite oil decline as caution reigned, with the U.S. bond selloff spilling over into regional debt markets. The NSE CEO saw an end to India's derivatives crackdown, with the wave of regulatory tightening largely over. Indian shares extended their slump as outlook worsened for online insurance sellers, while home prices in the Philippines dropped to a seven-year low amid weak demand. India allowed wealth-focused funds with $463 billion invested abroad to expand their global reach.

European Markets and Corporate Actions

European retail stocks set to struggle as risks for consumers grew, following an underwhelming earnings report from Hennes & Mauritz AB. Banks tapped billions in Bank of England repo cash to profit on bond trades, fueled by cheap financing. The Netherlands sought an end to gas storage targets after spending nearly €1 billion on mandatory storage. Brussels warned capitals to tackle the energy crisis or see the far right take power ahead of winter. The EU urged the UK to raise tariffs on Chinese cars to avoid "made in Europe" barriers.

Corporate Earnings and Deal Activity

Costco reported higher fourth-quarter profit and revenue on resilient consumer spending, logging a quarterly profit of $3 billion. Darden Restaurants posted sales gains but profit slipped on higher expenses. Starbucks announced plans to close 250 underperforming stores in the U.S. as part of a broader turnaround. The UK's food and drink trade deficit hit £21bn amid Brexit and Trump tariffs, with export volumes falling 11.7%.

In the pharmaceutical sector, deal fever boosted a flurry of highly complex mergers, with concerns over competition and patents adding to legal challenges. Adarx Pharmaceuticals raised $446.3 million in an upsized U.S. IPO, while Anthropic committed $11.6 billion over seven years for cloud services from Akamai Technologies. SoftBank paid steep yields of up to 9.75% to raise more than $11 billion in a record junk bond offering to fund its OpenAI bet.

Technology and Innovation

Meta's stock reached its best month since 2013, hovering near the $2 trillion level. The AI agent revolution moved a step closer with the launch of Muse by Meta. BlackRock launched tokenized portfolios on the blockchain, with three model portfolios holding baskets of ETFs. Cathie Wood tokenized a $1.3 billion venture fund to trade 24/7 on Ethereum. Google sent an AI data center to outer space with its Project Suncatcher satellite. A new AI model took aim at OpenAI and Anthropic, promising faster and more efficient AI for developers.

Geopolitics and Policy Shifts

The Trump-Xi summit masks deep divides between the U.S. and China, with flyovers and pandas obscuring fundamental disagreements. The Trump administration sought to stabilize ties during the summit, though the flow of Chinese components to Iran shadowed the meeting. Trump struggled to find leverage with Xi over Chinese exports. The Senate defeated a bid to direct Trump to end the Iran War or seek approval. Iran proposed a 7-day plan to end the war at the UN, including reopening the Strait of Hormuz.

Legal and Regulatory Developments

A federal judge blocked Trump's ban on reporters, ordering the White House to restore access for CNN, MS Now, and Politico. The White House restored access to three outlets Trump had banned, though some outlets remained barred despite the court order. New York sued Polymarket as an "illegal gambling business," while Kalshi's embrace of sports betting tested prediction market rules. The U.S. government aired a pro-Trump ad on Fox News, paid for by taxpayers.

Real Estate and Housing

Mortgage rates hit 7% as Iran war fallout crushed the weak housing market, with the average rate on a 30-year mortgage jumping to 7.03%. U.S. mortgage rates breached 7% amid surging government bond yields and rising oil prices. Leslie's prepared a Chapter 11 filing as soon as next week in Houston, expecting to hand control to lenders. Handbag prices pushed luxury buyers away as the almost-premium credit card market reshuffled. Canada Goose faced Trump tariff pressure as the U.S. remained a key market for brands manufacturing jackets and parkas.