September 18, 2026

Weekly Market Movers — Key Highlights

• The Federal Reserve raised interest rates by 25 basis points and signaled additional tightening ahead.
• New Zealand GDP and South African retail sales exceeded expectations, indicating pockets of economic resilience.
• Brent crude climbed above US$108/bbl following attacks on Saudi energy infrastructure and escalating Red Sea disruptions.

Global equity markets fell during the week as Brent crude surged above US$108 per barrel following attacks on Saudi Arabia’s East-West pipeline and heightened disruption risks across the Red Sea and Bab el-Mandeb Strait. The capture of strategic territory by Houthi forces further intensified concerns over global trade routes, energy security and inflationary pressures. While energy stocks benefited from rising oil prices, broader equity markets struggled amid fears that higher input costs could undermine economic growth and corporate profitability.

In the United States, equities also declined as the Federal Reserve raised interest rates by 25 basis points, marking its first increase in more than three years and signaling further policy tightening to address persistent inflation. Stronger-than-expected retail sales data highlighted continued consumer resilience but reinforced expectations of restrictive monetary policy. Geopolitical developments remained prominent, with U.S. officials engaging in talks with Houthi representatives in Oman and the U.S. administration proposing a US$2.8 billion military aid package for Israel.

Global Updates

• The MSCI All Country World Index posted broad-based declines during the week, amid intensifying Middle East tensions, disruptions to energy infrastructure, and renewed uncertainty over the economic impact of higher commodity prices.
• New Zealand’s economy expanded 0.2% quarter-on-quarter in Q2, outperforming forecasts of 0.1% growth, although activity slowed markedly from the 0.8% increase recorded in Q1 as Middle East tensions weighed on business and consumer confidence.
• South Africa’s retail sales rose 3.4% year-on-year in July, up from a revised 1.1% increase in June, indicating stronger consumer spending and improved activity across the country’s retail sector.
• SB Energy, a data-center developer backed by SoftBank Group, will sell up to US$500 million in shares to Japanese investors as part of its U.S. listing plans, with proceeds earmarked for data-center development, power generation, and related infrastructure projects.
• Huawei announced it will introduce two new artificial-intelligence chips in 2027, the 960DT and Ascend 960PR, as part of its efforts to strengthen its AI-computing business.
• Saudi East-West Pipeline Shutdown following a drone attack raised concerns over global energy supply security, pressuring broader equities.
• Escalation of Red Sea and Middle East supply disruptions pushed Brent crude above $108/bbl, intensifying inflation concerns and weighing on global risk assets.
• Houthi forces seized strategic territory overlooking the Bab el-Mandeb Strait, dealing Saudi Arabia a major setback in Yemen and raising concerns over maritime security and Iran’s growing regional influence.

U.S. Equity

• U.S. equity markets edged lower as the Federal Reserve delivered its first rate hike in over three years and signaled further tightening, while rising Treasury yields, elevated oil prices and escalating Middle East tensions weighed on investor sentiment, offsetting gains in energy stocks.
• The Federal Reserve raised interest rates by 25 basis points to 3.75%-4.00%, citing persistent inflationary pressures and signaling further policy tightening ahead.
• U.S. retail sales rebounded 1.2% in August, with spending increasing across most categories and core retail sales posting their strongest gain since September 2024.
• Eli Lilly announced its oral obesity drug captured over 30% of new U.S. patients, narrowing Novo Nordisk’s market lead.
• Accenture agreed to a US$25 million settlement with the U.S. Department of Justice to resolve allegations concerning its diversity and inclusion practices.
• Abbott Laboratories agreed to a settlement exceeding US$384 million to resolve allegations involving contamination risks in infant formula production.
• British Prime Minister ​Andy Burnham is expected to hold his first meeting with United ​States President ​Donald Trump next week on the sidelines of the United Nations General Assembly.
• The U.S. International Development Finance Corporation approved a US$500 million trade-finance facility, partnering with the International Finance Corporation to help U.S. companies expand trade and investment activities across emerging markets in South America, Southeast Asia, and Africa.
• The Trump administration plans to provide Israel with a US$2.8 billion munitions package.

Fixed Income

• The Bloomberg U.S. Aggregate Bond Index edged higher over the week.
• The U.S. 10-year Treasury yield fell to 4.959%, and the yield on the 2-year note rose slightly to 4.688% over the week.
• The U.S. Dollar Index rose to 100.31 over the week.

• Global equities declined amid heightened geopolitical and inflation concerns.
• Brent crude surged as Middle East tensions disrupted energy markets.
• Strong U.S. inflation data raised expectations for further monetary tightening.
• AI and semiconductor stocks outperformed, led by Intel and Qualcomm.

Global equity markets declined over the week as risk sentiment weakened across both developed and emerging markets amid heightened geopolitical tensions, rising bond yields, and continued uncertainty surrounding the global interest-rate outlook. Strength in artificial intelligence, semiconductor, and communications infrastructure-related stocks provided some support, but these gains were largely outweighed by broader concerns over slowing global growth, elevated energy prices, and persistent geopolitical risks. Rising crude oil prices and strains in sovereign debt markets further dampened investor sentiment, prompting a shift toward defensive positioning and weighing on economically sensitive sectors, including technology and consumer discretionary.

Geopolitical developments remained a key driver of market performance. Escalating hostilities between Iran and the United States, along with continued disruptions to critical shipping routes in the Strait of Hormuz and growing influence of Iran-aligned forces around the Bab el-Mandeb Strait, intensified concerns over global trade and energy supplies. Higher oil prices renewed inflation concerns and added to market volatility, while ongoing strategic tensions between the U.S. and China, divisions among BRICS nations, and the continuing Russia-Ukraine conflict contributed to a cautious investment backdrop. Trade frictions between the United States and Canada also added to uncertainty, reinforcing a risk-off tone across global markets.

Global Updates

• The MSCI All Country World Index declined over the week as a sharp rise in oil prices heightened inflation concerns, prompting investors to reassess expectations for further monetary tightening by major central banks.
• The IMF said the global economy has remained resilient despite the Middle East energy shock, projecting around 3% growth in 2026 while warning of elevated risks.
• The UK economy expanded by 0.4% in July, surpassing expectations, as economists had anticipated no monthly growth following June’s unchanged GDP reading.
• French energy major TotalEnergies reported a new oil discovery in Angola and agreed to acquire a 40% operated stake in two exploration blocks. The Acacia-5 discovery is expected to increase Block 17 output by 6,000 barrels per day, with production targeted within months.
• Chinese AI chipmaker Shanghai Enflame Technology surged around 200% on its Shanghai debut after raising 6.12 billion yuan in its IPO, significantly outperforming broader Chinese equities.
• Indian electric motorcycle maker Ultraviolette Automotive plans to invest ₹7.79 billion in a new manufacturing facility, targeting mass-market expansion amid rising electric two-wheeler demand.
• Iran-backed Houthi forces captured Yemen’s port city of Mocha and advanced towards strategic Red Sea islands, strengthening their position around the vital Bab el-Mandeb shipping corridor.
• India will host the BRICS summit in New Delhi this weekend amid divisions over the Iran conflict, which has disrupted the Strait of Hormuz oil flows and lifted crude prices.
• A Ukrainian drone strike killed two people in Russia’s Tula region, while Russian air attacks injured eight in Kyiv, highlighting the conflict’s continued impact on civilians.
• Ship movements through the Strait of Hormuz declined to seven transits on Thursday from 11 a day earlier, remaining below the 10-day average of 15.
• Canada announced a C$350 million aid package for Ukraine to procure air defense interceptors, as Kyiv faces mounting pressure from intensified Russian missile attacks.

U.S. Equity

• U.S. equity markets ended the volatile week lower, as investors grew increasingly cautious amid rising Treasury yields, elevated oil prices, and persistent inflation concerns. Growth-oriented technology shares came under pressure as higher interest-rate expectations weighed on valuations, while markets also digested stronger-than-expected producer inflation data and awaited key consumer inflation figures ahead of the Federal Reserve’s next policy meeting. The risk-off tone contributed to four consecutive days of losses for major U.S. indices, reflecting investor concerns that inflationary pressures could keep monetary policy restrictive for longer.
• The U.S. Producer Price Index (PPI) rose 0.4% in August, tracking at an annualized rate of 5.4% to keep wholesale core inflation significantly above the central bank’s target.
• The escalating U.S.-Iran conflict intensified supply disruption concerns, driving crude oil prices higher and weighing on broader risk sentiment over the week. Tensions in the Middle East forced global Brent crude oil prices to surge past the $ 107-per-barrel mark.
• Investors reacted to stronger-than-expected August Producer Price Index (PPI) data, which reinforced concerns that inflation pressures will likely remain elevated. Markets are increasingly pricing in the possibility of a Federal Reserve rate hike ahead of the September policy meeting as inflation and energy prices continue to rise.
• The White House announced new restrictions on selected Canadian imports and expanded tariff measures, escalating trade tensions between the United States and Canada. Canada’s retaliatory tariffs on $20 billion of American goods also took effect, escalating the cross-border trade friction following the restrictive trade proclamations from the White House.
• Novartis’ stock price dragged following late-stage clinical trial setbacks for its cardiovascular treatment pelacarsen and its muscular dystrophy drug del-desiran.
• Intel shares rose during the week after reports indicated the company plans to increase prices on its central processing units (CPUs) by approximately 10% beginning in October, signaling stronger pricing power and efforts to improve profitability. Investor sentiment toward the semiconductor sector was supported by expectations that the price increase could bolster Intel’s revenue outlook amid ongoing demand for advanced computing and AI-related technologies.
• Corning’s stock rallied during the week after the company secured a multibillion-dollar supply agreement with Verizon Communications to provide high-density optical fiber solutions through 2032. The long-term contract strengthened investor confidence in Corning’s growth.
• Qualcomm shares gained after the company announced a partnership with Amazon Web Services focused on building artificial intelligence data center infrastructure and optical connectivity solutions.
• The Department of Commerce took minority equity stakes in quantum computing companies D-Wave Quantum, Rigetti Computing, and Quantinuum in exchange for $100 million each in CHIPS Act funding.
• The U.S. Treasury Department tripled its longer-dated bond buyback operation to $6 billion during the week, a move aimed at improving market liquidity and addressing strains in the Treasury market that had contributed to distortions in the yield curve.

Fixed Income

• The Bloomberg U.S. Aggregate Bond Index declined sharply over the week.
• The U.S. 10-year Treasury yield rose sharply to 4.942%, and the yield on the 2-year note rose to 4.556%, due to the rise in oil prices and rising concerns regarding rate uncertainty and government debt over the week.
• The U.S. Dollar Index declined slightly to 99.10 over the week.