General Market News

A bipartisan bill aimed at preventing AI data center developers from passing infrastructure costs to utility ratepayers stalled in the Senate on Thursday after Sen. Martin Heinrich (D-N.M.) blocked it, arguing it relies only on voluntary state commitments. The Ratepayer Protection Act had passed the House 417-3 on Wednesday but now faces near-certain failure before the November election, as the Senate leaves in two weeks.

• The bill would establish an optional regulatory framework for states requiring data centers with 100+ megawatt demand to cover costs of new power infrastructure rather than passing them to consumers
• Around 1,000 major data centers are expected to be built in the next five years with over 2,000 projects currently proposed or tracked nationwide
• Heinrich blocked the bill in favor of his own proposal that would give FERC rulemaking authority over facilities demanding 150+ megawatts and mandate they pay for grid-related costs

The Federal Aviation Administration expects approximately $100 million in additional costs due to tariffs impacting its $12.5 billion air traffic control modernization program. FAA Administrator Bryan Bedford announced that two radar suppliers are relocating production to U.S. facilities to mitigate tariff effects.

• The $100 million tariff impact represents less than 1% of the total $12.5 billion modernization budget
• Radar suppliers Raytheon and Indra Group are moving production to Florida and Kansas City respectively to avoid tariff costs
• The tariff impact affects the broader government effort to modernize the nation's air traffic control infrastructure

ASE Technology (ASX) has surged 230.9% over the past year, significantly outpacing the market's 25.6% gain, driven by strong demand for advanced AI chip packaging services. The company's Leading-Edge Advanced Packaging (LEAP) business is driving revenue acceleration and margin expansion as AI semiconductors require increasingly sophisticated packaging and testing. ASX raised its 2026 capital expenditure to $10.5 billion to expand capacity and meet growing AI-related demand.

• ATM gross margin expanded to 27.3% in Q2 2025 from 21.9% year-over-year, with expectations to exceed 30% by Q4 2026, driven by higher LEAP volumes and improved utilization
• ASX increased 2026 capex to approximately $10.5 billion, allocating 70% of its $6.5 billion equipment budget to leading-edge operations across 13 greenfield and 8 brownfield expansion projects
• Second-quarter earnings surged 167.9% year-over-year while revenues climbed 26.7%, with the company maintaining a Zacks Rank #1 (Strong Buy) rating

US mortgage rates surged to 6.95% for 30-year fixed loans, the highest level in over 19 months, following a Federal Reserve rate hike aimed at combating inflation. The increase, driven by geopolitical tensions and rising Treasury yields, adds hundreds of dollars to monthly borrowing costs and further constrains an already struggling housing market that has been in a slump since 2022.

• The 30-year fixed mortgage rate rose to 6.95% from 6.76% the previous week, while 15-year rates climbed to 6.26%, with the 10-year Treasury yield breaching 5% for the first time since 2023
• The Fed raised its key interest rate for the first time in three years and signaled potential additional hikes, which economists warn will keep mortgage rates at or above the 7% 'psychological and financial barrier'
• Higher rates are sidelining homebuyers in a market already constrained by elevated home prices, chronic housing shortages, and flat sales since the pandemic-era low rates ended in 2022

US stocks closed mixed on Wednesday after the Federal Reserve raised interest rates by 25 basis points for the first time in three years, citing strong consumer spending and persistent inflation. The Dow fell 631 points (1.2%) while the S&P 500 dropped 0.5% and the Nasdaq remained flat, as the 10-year Treasury yield topped 5% and investors weighed the Fed's more restrictive rate path ahead.

• The Fed signaled one more rate hike this year with 12 of 18 officials expecting another increase, while raising its median rate forecasts to 4.1% for 2026-2027 and 3.9% for 2028, up from June projections of 3.8%, 3.6%, and 3.4% respectively
• August retail sales rose 1.2%, reinforcing evidence of economic resilience, while the Fed raised its 2026 GDP growth forecast to 2.3% and PCE inflation forecast to 3.7%, with unemployment lowered to 4.1%
• Cryptocurrency markets declined after the US Senate failed to advance the Clarity Act for digital asset regulation, with Bitcoin falling below $76,000 and blockchain-related equities dropping 5% to 10%

Diesel fuel prices hit a record high of $6.31 per gallon, driven by wars in Ukraine and Iran and reduced global refining capacity. As diesel is considered the U.S. economy's 'single most universal tangible input,' the price surge is expected to ripple through virtually all sectors, impacting trucking, rail, heating oil, groceries, and consumer goods. Experts warn that even if conflicts end today, prices may take a year or longer to decline due to damaged refining infrastructure.

• Home heating oil costs could surge 31% this winter for Northeast consumers, with low-income and middle-class families facing 'significant hardship' and requiring 'significant sacrifices' according to energy assistance advocates.
• Nearly 100% of the world's available refining capacity is currently being utilized, with approximately 20% of total global capacity offline due to damage in Russia and the Middle East, creating a critical bottleneck.
• Trucking companies face immediate pain with fuel surcharges, while downstream impacts will hit grocery prices, delivery fees, construction costs, farm operations, and anything requiring transportation within weeks as costs work through the supply chain.

Supermarket Income REIT reported H2 earnings showing portfolio expansion to £2.2 billion gross asset value across 140 fully occupied supermarkets, completing £676 million in acquisitions. The company strengthened its financing with £1 billion in debt including its first public bond, extending debt maturity to 3.6 years with no refinancing needs until June 2028. Despite 93% dividend coverage due to temporary cash drag, management reaffirmed a minimum 2% dividend increase and expects full coverage by fiscal 2027.

• Portfolio metrics: 140 supermarkets with 83% inflation-linked income, average lease length of 11 years, and company aims to double portfolio to £4 billion from current £2 billion
• Net rental income rose 6% year-over-year to £122 million; acquisitions completed at 6.8% yield versus 6.2% yield on assets sold, creating 120 basis point spread
• Debt costs average 4.4% with 98% fixed or hedged through June 2028; leverage stands at 45% which management views as upper limit; company raised £100 million in equity (first since 2022) fully deployed within two months

Two U.S. senators have urged the FTC to investigate Amazon and Walmart, alleging their AI shopping chatbots suppress information about American-made products and fail to flag fraudulent 'made in USA' labels. The request follows a study showing the chatbots prioritize overseas products and can detect false origin claims but don't act on them.

• A study by a think tank led by former FTC Chair Lina Khan found that Amazon's Alexa and Walmart's Sparky chatbots suppress 'made in USA' filters, with Alexa reportedly stating it would 'redirect significant sales away from their largest seller base' (overseas manufacturers)
• Walmart's Sparky cited limited FTC enforcement against retailers when asked why it doesn't flag suspicious 'made in USA' claims, calling it 'a business calculation, not a legal justification'
• Senators Tammy Baldwin and Rick Scott are calling for FTC enforcement action, arguing the chatbots undermine American manufacturing promotion and mislead consumers

Stocks rebounded Thursday morning after a steep sell-off following the Federal Reserve's interest rate decision, with the Dow rising 305 points (0.6%), the S&P 500 up 1%, and the Nasdaq climbing 1.3%. Treasury yields eased slightly while oil prices dipped near $100 per barrel. The recovery came as investors gained clarity from the Fed's meeting, though concerns remain about future rate hikes and their impact on consumers.

• The Fed's dot plot showed 12 of 18 officials expect one more rate hike this year, with four anticipating two more hikes and only two predicting no additional increases
• Oil prices declined with Brent crude falling 2.6% to $103.30 per barrel and West Texas Intermediate sliding 1.8% to $100.55 per barrel
• Consumer sentiment dropped to 47.8 in September from 51.7 the previous month, near historic lows, as higher interest rates threaten to increase borrowing costs on mortgages, auto loans, and credit cards

U.S. major stock indices rebounded strongly on Thursday after initial concerns from the Federal Reserve's interest rate decision dissipated. Traders refocused on better-than-expected U.S. economic performance, driving the Nasdaq, Dow Jones, and S&P 500 higher in pre-market trading as buyers returned to the market.

• The Dow Jones bounced from key support at 51,550, a level that has held for several months, with the stochastic oscillator crossing in oversold territory signaling potential bullish momentum
• The S&P 500 surged above the crucial 7,600 level and is now targeting 7,800, demonstrating strong market resiliency despite previous resistance at that higher level
• Most losses from the Fed rate decision day were erased, indicating a significant shift in market sentiment as traders interpreted the strong economy as a positive signal

A Jefferies-linked fund alleges that iron ore trader Radiant World may hold only $10,000 in cash, despite financial statements showing over $200 million in cash balances. LAM Trade Finance Group II has obtained freezing orders in London, Hong Kong, and Singapore over alleged fraud involving non-existent or invalidly assigned receivables. Radiant World faces multiple lawsuits totaling over $2 billion and is under investigation by Singapore police.

• LAM Trade Finance Group II claims a $190+ million discrepancy exists between Radiant World's audited cash balances ($200 million) and actual holdings (allegedly just $10,000)
• The fund alleges it purchased iron ore receivables from traders like Glencore and Vitol that either did not exist or were not validly assigned, with defendants using 'debit notes to paper over the cracks'
• Radiant World faces lawsuits seeking more than $2 billion in Singapore and is under police investigation regarding concerns over potentially invalid invoices provided to banks

The US Federal Reserve raised interest rates by 25 basis points on September 16, 2026, marking its first increase since 2023. Despite the hawkish move, market experts believe US stocks will remain resilient due to strong corporate fundamentals, with the S&P 500 currently sitting less than 2% below its record high. Analysts cite robust company balance sheets and historical data showing stocks typically gain after the first hike in a tightening cycle.

• Historical analysis of 16 Fed rate-hiking cycles since 1954 shows the S&P 500 averaged a 10.8% gain in the year following the first rate increase.
• Tech giants like Alphabet, Amazon, Microsoft, and Meta possess vast cash reserves to fund AI and data center investments without relying on debt, insulating them from higher borrowing costs.
• The Fed's unanimous 12-0 vote raised rates to a target range of 3.75% to 4.00%, ending the prolonged 'on hold' stance expected to persist through most of 2026.

US stocks rebounded on Thursday, with the Dow rising 311 points, after the Federal Reserve raised interest rates by a quarter point on Wednesday for the first time since 2023. Tech stocks led the recovery as investors moved past the Fed's hawkish tone, with bond yields easing and the rate hike overhang now lifted.

• The Fed's dot plot showed 16 of 18 policymakers expect at least one more quarter-point hike before the end of 2026, with Chair Kevin Warsh calling inflation 'too high' and financial conditions not yet restrictive enough
• Technology stocks including Alphabet and Meta gained over 1% as the 2-year Treasury yield fell 1 basis point to 4.72% and longer-term yields eased about 2 basis points
• Fluence Energy plunged 19% after cutting its fiscal 2026 revenue forecast, while President Trump criticized the rate hike, calling for rates at 1% or lower and creating tension with the Fed

Revolut CEO Nik Storonsky confirmed the fintech company is planning a dual stock market listing in both New York and London, according to an interview with French newspaper Les Echos. The announcement marks a significant step for the financial technology firm, though Reuters has not independently verified the report and Revolut has not yet commented.

• Revolut founder and CEO Nik Storonsky disclosed the dual listing plans in an interview with Les Echos
• The company plans to list on both the New York and London stock exchanges simultaneously
• Reuters could not independently verify the report, and Revolut did not immediately respond to requests for comment

Apollo Global Management is exploring strategic options for Energos Infrastructure, a floating LNG infrastructure operator, in a potential deal valuing the company at over $3 billion. XRG, Abu Dhabi National Oil Company's international investment arm, is among potential bidders considering acquiring up to a 50% stake. Energos operates 13 floating LNG vessels globally under long-term arrangements.

• Apollo is open to either a full or partial sale of Energos, which operates 13 floating LNG vessels deployed in Brazil, Egypt, Indonesia, Mexico, and the Netherlands
• XRG is exploring a stake of up to 50% as part of its strategy to build an integrated global gas and LNG business with 25 million tons per annum capacity by 2035
• Apollo formed Energos with New Fortress Energy in 2022 and acquired New Fortress's 20% stake in January 2024

European cinema operator Vue is exploring strategic options including a potential London IPO or sale, following a record-breaking summer at the box office. The company, which operates around 220 cinemas across eight European countries, was taken over by lenders in a post-pandemic rescue deal after COVID-19 lockdowns disrupted operations. A listing would provide a boost to London's struggling IPO market amid a prolonged slowdown in new listings.

• Vue has appointed Rothschild to explore strategic options and may begin IPO preparations before the end of 2026, though no final decision has been made
• The company was restructured and taken over by lenders following pandemic-related financial strain, but has benefited from strong 2024 blockbuster releases including 'Spider-Man: Brand New Day' and 'The Odyssey'
• A potential London listing would be a rare positive development for the city's IPO market, which has seen high-profile companies like Visma, Loveholidays, and AS Watson delay or shelve listing plans

U.S. stock futures rallied on Thursday, with Dow futures climbing 367 points (0.7%) as investors focused on falling oil prices and easing Treasury yields rather than the Federal Reserve's rate hike the previous day. The 10-year Treasury yield dropped below 5% and Brent crude fell toward $104 per barrel, relieving valuation pressure on growth stocks and triggering a rebound in technology shares.

• The Fed raised rates by 25 basis points to 3.75%-4% and signaled another potential increase in October, with markets assigning roughly even odds to that move
• Large-cap tech stocks led the rally, with Alphabet and Meta up more than 1% premarket, while AI infrastructure plays CoreWeave, Nebius, and IREN surged 5-9%
• Fluence Energy plunged 18% after cutting its fiscal 2026 outlook due to supply-chain issues, highlighting that the rally remains selective and companies face punishment when earnings visibility deteriorates

The Federal Reserve raised its benchmark interest rate by 0.25% to 3.75%-4.00%, its first hike in three years, with hawkish messaging signaling more tightening ahead. Fed Chair Kevin Warsh cited persistently high inflation and strengthening economic data, while 16 of 18 policymakers projected at least one more hike by end-2026. Markets showed initial acceptance despite uncertainty, with stocks edging higher and long-term Treasury yields easing slightly below 5%.

• Fed funds futures indicated roughly 50% probability of another rate hike at the October meeting, just before midterm elections
• President Trump called for lower rates but notably avoided criticizing Chair Warsh, unlike his treatment of predecessor Jerome Powell
• Bank of England expected to hold rates steady at 3.75% Thursday, though markets priced 80% chance of a November hike amid elevated energy prices

Mexican President Claudia Sheinbaum reportedly rebuked top energy and finance officials in late July over declining fuel production at state oil company Pemex, despite government claims of approaching energy self-sufficiency. The confrontation came as second-quarter data revealed falling gasoline and diesel output, rising imports, and 12 refinery accidents this year that killed six workers. Mexico has invested billions in Pemex through debt support and tax breaks, but production has stagnated amid persistent operational problems.

• Pemex diesel production fell 11% and gasoline output dropped 13% in Q2 versus Q1, while diesel imports surged 134% and gasoline imports rose 45%, with import costs reaching $4.55 billion for gasoline and $1.51 billion for diesel
• No Pemex refinery is operating at designed capacity; the Minatitlán refinery converted just 39% of petroleum into higher-value products in July versus its 75% design rate, while the flagship $21 billion Olmeca refinery has experienced recurring electrical failures and fires
• Sheinbaum's 2027 budget proposal slashed funding for Pemex debt payments based on expectations the company will no longer need support, even as sources identify structural problems including political interference, eroded safety protocols, equipment shortages, and inadequate maintenance funding

Austria's Raiffeisen Bank International (RBI) rejected accusations made by short seller Grizzly Research regarding its Russia business operations. Grizzly claimed RBI has undisclosed dependence on Russian operations and alleged involvement in sanctions circumvention extending to Iran and North Korea. RBI defended its compliance systems as thoroughly reviewed and stated Grizzly's report contains factually wrong and misleading statements.

• Grizzly Research disclosed it has taken a short position on RBI stock while releasing critical allegations
• The short seller alleges 'previously unknown dependence' on Russia business and questions RBI's role in circumventing sanctions targeting Iran and North Korea
• RBI defended the strength of its compliance systems, stating they have been reviewed many times, and initially declined further comment on the specific allegations