International markets update:
Global markets experienced a turbulent day as a significant U.S. Treasury intervention failed to calm rising bond yields, while surging oil prices exacerbated selling pressure on equities. Investors also grappled with new device launches from Apple and alarming warnings from an AI expert.
- Apple unveiled its first foldable phone, the iPhone Duo, alongside new iPhone 18 models, watches, and Airpods. While the foldable device received mixed reactions over its screen crease, the new Pro and Max models saw price increases.
- The U.S. Treasury announced a tripling of its bond buyback operations to $6 billion, an extraordinary measure intended to maintain market liquidity and control rising yields. Despite this intervention, Treasury yields rose further, indicating negative market sentiment.
- International benchmark Brent crude surpassed $100 a barrel, with U.S. West Texas Intermediate futures reaching their highest close since May. This surge in oil prices contributed significantly to inflationary pressures and market instability.
- All three major U.S. stock indexes fell for a third consecutive day, pressured by persistently high Treasury yields and the sharp rise in oil prices. This widespread downturn reflects investor anxiety regarding economic stability and inflation.
- A CNBC analysis revealed a significant surge in former President Donald Trump’s personal energy portfolio, gaining millions amid the Hormuz conflict and rising oil prices. Trump also commented that elevated energy prices would not recede until after the midterm elections.
- An AI researcher resigned from Anthropic, criticizing the company and OpenAI for irresponsible development practices and warning of a more than 10% chance of AI “killing all humans” by the decade’s end. This ignited renewed concerns over the rapid pace of AI technology.
Stock Market News summarised for the Wall Street Investors Club community.