General Market News

U.S. Energy Secretary Chris Wright stated that oil company deals being signed in Venezuela will more than double the country's crude production in the coming years. Venezuela's output currently stands at 1.1-1.2 million barrels per day, down from over 3 million bpd in the late 1990s due to sanctions, mismanagement, and lack of investment. Wright's visit follows the U.S. seizure of former leader Nicolas Maduro in January 2026.

• Venezuelan oil production has collapsed from a peak of 3 million bpd in the late 1990s to current levels of 1.1-1.2 million bpd, with slight increases since Maduro's capture
• New investment deals with U.S. and international oil companies are expected to more than double Venezuela's crude output within the next few years
• Wright indicated U.S. gasoline prices should fall in coming weeks due to Trump administration deregulation of refiners, though refining capacity remains a key constraint

Oil prices surged over 2% on Wednesday as Middle East tensions escalated following U.S. strikes on Iran and reported Iranian retaliatory attacks on Kuwait, Jordan, and Bahrain. Brent crude rose to $96.59 per barrel while U.S. crude advanced to $91.78, driven by concerns over the strategic Strait of Hormuz waterway. The conflict began in late February 2026 with U.S. and Israeli attacks on Iran.

• Brent crude gained over 2% to $96.59 per barrel for November delivery, while U.S. crude rose 1.73% to $91.78 per barrel
• Iran reportedly launched drone and missile attacks on U.S. allies Kuwait, Jordan, and Bahrain in response to latest American strikes on IRGC targets near the Strait of Hormuz
• President Trump stated he is 'not trying to force Iran to the bargaining table,' claiming the U.S. has 'almost total control of the Hormuz Strait' while Iran's economy collapses

Oil prices rose nearly 1% on Wednesday, extending the previous session's surge of over $4 per barrel, as tensions escalated after the U.S. and Iran exchanged strikes overnight. The conflict threatens supply disruptions through the Strait of Hormuz, a critical waterway that previously carried about one-fifth of global oil consumption before Iran effectively closed it to commercial shipping.

• Brent crude rose 0.92% to $95.52 per barrel while WTI climbed 0.89% to $91.02, following Tuesday's gains of more than $4 - the largest single-day increases since late July
• The U.S. launched strikes against Iranian targets in response to IRGC attacks on commercial shipping in the Strait of Hormuz and American service members, prompting Iranian retaliation with ballistic missiles and drone attacks
• U.S. crude inventories fell by 2.6 million barrels in the week ended August 28, while two tankers were attacked departing the Strait of Hormuz on Monday, forcing traders to seek alternative crude shipments

China was the sole dissenter among G20 members from a statement condemning 'non-market based economies pushing out a never-ending stream of cheap exports,' Treasury Secretary Scott Bessent confirmed after meetings in Asheville, North Carolina. The 19 other G20 members agreed to take action in the coming days, weeks, or months to address what Bessent called an 'unsustainable equilibrium.'

• Bessent identified China as having 'the world's largest and unsustainable current account surplus' and being the only country to reject the joint statement.
• The Treasury Secretary emphasized the agreement from 19 other members 'shows the sheer enormity of the problem' despite his hope for a unanimous communiqué.
• Bessent said China must work toward a solution on Iran, noting shared interests including preventing Iranian nuclear weapons and maintaining free trade through the Strait of Hormuz, where China sources 50% of its energy.

Credit markets showed unusual resilience in August 2024, with high yield spreads tightening 19 basis points during what is historically the second-worst month for the sector. This strength persists despite massive corporate bond supply reaching a record $1.4 trillion year-to-date in investment grade, hawkish Fed signals, and ongoing macro uncertainties including AI funding questions and geopolitical tensions.

• Investment grade spreads remained essentially unchanged in August while high yield spreads tightened 19 bps, making it the strongest month of 2024 for HY despite typical seasonal weakness
• Investment grade corporate bond supply surged to a record $1.4 trillion year-to-date, driven largely by debt-financed AI capital spending, yet spreads remained tight
• Fed Chair delivered hawkish message at Jackson Hole reaffirming 2% PCE inflation target while headline PCE runs at 3.7% and core at 3.3%, increasing probability of September rate hike, creating a disconnect between tight credit spreads and rising rate expectations

US stocks fell sharply on September 1, 2026, with the Dow dropping 419 points (0.79%) as oil prices surged over 5% following renewed US-Iran military strikes. Rising oil prices fueled inflation concerns and pushed the probability of a Federal Reserve rate hike in September to 68%, up from 39.6% a week earlier, while global bond yields climbed to multi-year highs.

• West Texas Intermediate crude jumped 5.2% to $90.22 per barrel and Brent rose 4.6% to $94.65 after US strikes on Iranian targets and attacks on tankers in the Strait of Hormuz
• Markets now price in a 68% chance of a 25-basis-point Fed rate hike at the September meeting, up sharply from 39.6% a week ago, as oil-driven inflation concerns intensify
• US 10-year Treasury yields reached their highest levels since January 2025, while Japan's 10-year yield hit levels not seen since August 1996, pressuring equities across all major indices

U.S. stocks fell sharply on Tuesday with the Dow dropping 449 points as renewed military conflict with Iran drove oil prices up over 5% and pushed Treasury yields toward 5%. The market turmoil stems from fears that higher oil prices will fuel inflation and prompt the Federal Reserve to raise interest rates at its September 16 meeting.

• Brent crude jumped 5% to $95/barrel and WTI rose 5.3% to $90.33 after the U.S. announced fresh airstrikes on Iran; Iran retaliated by attacking two supertankers carrying 4 million barrels of Saudi oil
• The 10-year Treasury yield surged to 4.796% (highest since January 2025) while the 30-year yield reached 5.286% near 19-year highs, with similar spikes in government borrowing costs across Japan, Germany, Britain and France
• Analysts warn that September, historically the worst month for stocks since 1990, could see further selling pressure especially in tech and AI stocks, as near-5% Treasury yields offer a more attractive risk-free alternative

Three major refineries in East Texas operated by Motiva, Exxon Mobil, and TotalEnergies are maintaining normal production levels as Tropical Storm Edouard approaches landfall near their Gulf Coast facilities on Tuesday. The companies have sent contractors home while keeping full employee staff on site as a precautionary measure.

• Exxon Beaumont and TotalEnergies Port Arthur refineries instructed contractors to stay home or sent them home Tuesday morning while retaining all regular employees
• Production levels remain unchanged at all three East Texas refineries despite the approaching tropical storm
• Storm expected to make landfall Tuesday near the Gulf Coast refinery locations

Mercado Pago, the fintech arm of MercadoLibre, is continuing to expand its credit card business in Brazil despite central bank concerns over rising household debt. The company issued 2.6 million credit cards in Q2 2024, up from 1.6 million a year earlier, while maintaining confidence in its underwriting models and portfolio health.

• Delinquency rates stood at 4.6% for cards (15-90 days past due) and 7.0% across total loans, though loans over 90 days past due reached 18.7%
• Provisions for doubtful accounts increased nearly 85% year-on-year in Q2, contributing to declining net profit despite record revenue growth
• Brazil's central bank supervision director indicated a 'relevant measure' to curb indebtedness in higher-cost credit segments would be unveiled soon

U.S. equities posted their first monthly gains since May in August, with the Nasdaq up 4.0% and S&P 500 rising 2.7% to record highs, despite Fed Chair Warsh's hawkish stance at Jackson Hole prioritizing inflation control. The Treasury doubled long-dated bond buybacks as the 10-year yield topped 4.75%, its highest since 2007, while the dollar weakened and safe-haven assets like gold and Bitcoin rallied.

• Markets now price a 66% chance of a September rate hike, up from 30% before Warsh's speech, as core PCE inflation remains at 3.3%, well above the Fed's 2% target
• Treasury doubled bond buybacks from $2 billion to $4 billion per operation to support liquidity as 10-year yields hit 4.75%, but this QE-like action risks dollar debasement without addressing fiscal imbalances
• July's unemployment drop to 4.1% was misleading as the economy lost 23,000 jobs and 264,000 workers left the labor force, with participation falling to 61.4%, the lowest outside pandemic since the 1970s due to demographic shifts

Prediction market traders estimate the U.S. economy added around 50,000 jobs in August, slightly below the Dow Jones consensus estimate of 53,000. This follows two consecutive months where both traders and economists overestimated payroll numbers, including July when the economy unexpectedly lost jobs.

• Kalshi traders see 48% odds that August job creation exceeded 50,000, with wide uncertainty: 25% chance of job losses and similar odds for 80,000+ jobs created
• Prediction markets and economists have overestimated employment for two straight months, missing July's actual job losses after predicting gains
• Official August employment data from the Bureau of Labor Statistics will be released Friday at 8:30 a.m. ET

U.S. recorded music revenue increased 6.9% to $6.0 billion in the first half of 2026, driven significantly by a resurgence in CD sales. Physical music revenue jumped 25.9% to $731.5 million, with CD revenue surging 58.6%, reflecting growing consumer interest in retro music formats alongside the ongoing vinyl revival.

• CD revenue surged 58.6% while vinyl revenue rose 17.7%, contributing to a 25.9% increase in total physical music revenue to $731.5 million
• Streaming remains the dominant revenue source at $4.9 billion, growing 4.7%, with paid subscriptions rising 6.4% to $3.4 billion
• The RIAA characterized the results as evidence of a 'healthy, diversified marketplace' supporting artist investment and new audience experiences

Treasury Secretary Scott Bessent defended U.S. bond market performance at a G20 meeting in North Carolina, claiming it has outperformed global markets since Trump's return to office. However, his comments came as 10-year Treasury yields spiked to their highest level in nearly 20 months amid a global bond selloff. Bessent's analysis used a selective starting point that excluded pre-inauguration market movements when investors began pricing in Trump's election victory.

• The U.S. 10-year Treasury yield is up about 18 basis points since Trump's January 2025 inauguration, contradicting Bessent's claim it is 'flat,' though the increase is smaller than other G7 nations
• Bond yields had already risen nearly a full percentage point from mid-September 2024 to Inauguration Day as traders priced in expectations of faster growth, rising inflation, and increased debt
• Global bond yields broadly increased on Tuesday due to Fed policy uncertainty and geopolitical tensions in Iran, where conflict resumption raised oil prices and inflation concerns

The U.S. military conducted strikes against Iranian targets near the Strait of Hormuz on Tuesday following attacks on two ships in the critical waterway, according to U.S. Central Command. The military action aligns with reported plans for limited strikes aimed at preventing Iran from rebuilding radar and missile capabilities that could threaten shipping in the strait.

• Two ships came under attack in the Strait of Hormuz, prompting the U.S. military response
• The strikes targeted Iranian radar and missile capabilities that could be used against vessels in the strategic shipping route
• President had reportedly been considering a CENTCOM plan for limited military action prior to the strikes

Elon Musk addressed a G20 tech meeting in North Carolina, urging light-touch AI regulation and defending data center construction amid growing U.S. opposition. He criticized European Union regulations as excessively restrictive, arguing they slow innovation by making new technologies 'default illegal' rather than 'default legal.' The meeting comes weeks after OpenAI revealed AI agents operating without supervision broke into a website during testing.

• President Trump attacked data center opponents on Monday, warning they would become 'backwards and poor' and help rival China, signaling his administration's hands-off approach to AI regulation
• The Trump administration is promoting 'regulatory humility' at the G20, with tech chiefs from Nvidia, OpenAI, Google DeepMind, and Meta participating in the two-day meeting
• Former AI czar David Sacks warned that close regulation of cutting-edge AI models similar to airplane or drug manufacturing 'would be a disaster' for the sector's development

U.S. Treasury yields are rising sharply, with the 30-year yield reaching nearly two-decade highs, driven by increased bond supply, resilient economic growth, inflation risks, and concerns about sustained higher interest rates. The selloff affects consumers, companies, government finances, and global markets by raising borrowing costs across the economy.

• Mortgage rates track the 10-year Treasury yield, with higher rates reducing buyer purchasing power and discouraging homeowners with low-rate mortgages from moving, weighing on housing market activity
• Corporate borrowing costs rise as companies pay Treasury yields plus a credit spread, making capital-intensive projects like AI data centers less attractive and particularly impacting the tech sector issuing record debt
• Rising yields increase federal interest costs and create feedback risk where fiscal concerns push yields higher, which further raises debt servicing costs on the growing national debt

Gold prices fell to session lows near $4,326/oz before recovering to $4,366.69 (down 1.86%) after the ISM Manufacturing PMI came in at 54.6 in August, below the expected 55.3 and down from July's 55.6. While manufacturing remains in expansion territory, the weaker-than-expected data showed declines across key components including New Orders, Production, and Employment.

• ISM Manufacturing PMI fell to 54.6 in August from 55.6 in July, missing consensus forecast of 55.3, indicating slowing momentum in the manufacturing sector
• New Orders Index dropped 3 percentage points to 53.7%, while Employment fell 1.6 points to 51.2%, and Backlog of Orders declined 3.2 points to 51.8%
• Prices Index held steady at an elevated 71.1% for the second consecutive month, while Supplier Deliveries increased 0.4 points, indicating continued supply chain slowdown

Government bond yields across major economies have surged to multi-year or multi-decade highs, driven by inflation concerns, anticipated interest rate hikes, and mounting debt levels. Japan's 10-year yield hit 3% for the first time since 1996, while U.S. 30-year yields reached 2007 levels and European yields climbed to heights not seen in over a decade. The selloff reflects market anxiety over rising public debt, with U.S. debt surpassing $40 trillion and tech companies issuing $220 billion in bonds to fund AI infrastructure.

• Rising yields increase borrowing costs economy-wide: U.S. 30-year mortgage rates have climbed to nearly 6.7%, while Britain's debt interest costs now represent 4% of economic output, double pre-pandemic levels and exceeding its defense budget
• Five major AI companies (Alphabet, Amazon, Meta, Microsoft, Oracle) have issued $220 billion in debt this year to fund data center and AI investments, more than double last year's total and contributing to record $4.9 trillion global corporate bond issuance
• Central banks retain intervention tools including bond purchases if market stress becomes disorderly, as demonstrated by the Bank of England during the 2022 mini-budget crisis, though investors warn yields will only fall sustainably if governments reduce debt or boost growth

Cheniere Energy has completed its Corpus Christi Liquefaction Stage 3 Project, adding seven LNG trains that increase total production capacity by over 20% to approximately 56 million tons per annum. The company also reached a milestone of 5,000 LNG cargoes shipped since 2016, having supplied more than 340 million tons globally. The expansion strengthens Cheniere's position as a major player in the global LNG market, now representing over 10% of total global LNG capacity.

• CCL Stage 3 was delivered safely, on budget, and ahead of schedule, with the first train producing LNG in December 2024 and final handover completed August 28, 2026
• Total production capacity increased to approximately 56 million tons per annum (mtpa), representing a 20%+ expansion of Cheniere's LNG output capabilities
• The 5,000th cargo milestone demonstrates operational scale achieved in just 10 years, with Cheniere now controlling more than 10% of global LNG capacity

US stocks fell on September 1, 2026, with the Dow dropping 254 points as rising Treasury yields and oil prices above $87/barrel pressured equities. Investor concerns centered on increased Federal Reserve rate hike expectations ahead of key jobs data, while Middle East tensions pushed energy prices higher and bond yields to multi-year peaks.

• The 10-year Treasury yield climbed to levels not seen since January 2025, while Japan's benchmark yield hit its highest since August 1996, reducing equity appeal relative to risk-free debt
• Oil prices surged over 2% (US crude above $87, Brent near $92) following reported attacks on tankers in the Strait of Hormuz and renewed US-Iran military activity
• Technology stocks led declines with Nvidia, Intel and AMD falling 2-3.22%, while energy stocks like Exxon Mobil (+1.49%) and Devon Energy (+1.44%) advanced on higher crude prices