Overnight US stocks | The three major indices continued to decline, and the settlement price of oil futures rose above $101, SK Hynix (SKHY.US) rose 7%
The Zhitong Finance App learned that on Wednesday, the US stock market fell for the third consecutive trading day, and the settlement price of oil futures rose above $101. US Treasury yields jumped. Earlier, the Treasury Department said it would double the scale of long-term government bond repurchase operations to 6 billion US dollars. The move comes after the Ministry of Finance announced last month that it would at least double the size of government debt buybacks.
[US stocks] At the close, the Dow fell 405.41 points, or 0.77%, to 52380.66 points; the S&P 500 index fell 37.16 points, or 0.48%, to 7636.36 points; the NASDAQ fell 168.07 points, or 0.64%, to 26253.34 points. Apple (AAPL.US) fell 0.2%, SK Hynix (SKHY.US) rose 7%, AMD (AMD.US) rose 3%, and Meta Platforms (META.US) rose 6.5%. The Nasdaq China Golden Dragon Index closed down 2.08%, while Alibaba (BABA.US) fell 2.8%.
[European stocks] The German DAX30 index fell 408.73 points, or 1.57%, to 25584.19 points; the British FTSE 100 index fell 142.34 points, or 1.32%, to 10669.32 points; the French CAC40 index fell 161.31 points, or 1.94%, to 8156.67 points; the European Stoxx 50 index fell 100.42 points, or 1.57%, to 6312.75 points; Spain's IBEX35 index fell 305.77 points, or 1.53 %, to 19691.33 points; Italy's FTSE MIB index fell 307.97 points, or 0.59%, to 51869.50 points.
[Asian Stock Market] The Nikkei 225 Index fell 0.19%, and the Korea Composite Index rose 1.4%.
[US Dollar Index] The US dollar index, which measures the US dollar against six major currencies, rose 0.03% on the same day and closed at 98.817 at the end of the foreign exchange market. As of the end of the exchange market in New York, 1 euro was worth 1.1630 US dollars, up from 1.1629 US dollars on the previous trading day; 1 pound was worth 1.3546 US dollars, down from 1.3547 US dollars on the previous trading day. 1 US dollar was worth 153.60 yen, lower than 153.61 yen on the previous trading day; 1 US dollar was worth 0.8103 Swiss franc, higher than 0.8090 Swiss franc on the previous trading day; 1 US dollar was worth 1.3806 Canadian dollars, higher than 1.3781 Canadian dollars on the previous trading day; 1 US dollar was worth 9.6009 SEK, up from 9.5816 on the previous trading day.
[Cryptocurrency] Bitcoin fell 0.52% to 78,137 yuan as of press release; Ethereum fell more than 1% to 2,461 US dollars.
[Crude oil] Light crude oil futures for October delivery on the New York Mercantile Exchange rose $3.02, or 3.25%, to close at $96.05 a barrel by the close of the day; London Brent crude oil futures for November delivery rose $3.29, to close at $101.21 a barrel, or 3.36%.
[Precious Metals] Spot gold is reported at $4400.93 per ounce; spot silver is reported at $67.308 per ounce. The World Gold Council said that global gold ETFs attracted capital inflows of 18 billion US dollars in August, setting a record for the second-largest monthly inflow in history, driving the total asset management scale to 615 billion US dollars, and reaching a record high of 4,189 tons of holdings. North America recorded the third-largest monthly inflow in history, while Europe recorded the strongest monthly performance in history. Together, the two regions accounted for nearly 90% of global demand. Gold market activity rebounded markedly, and the average daily trading volume of major market sectors increased 21% month-on-month.
[Macro News]
The decline continued after the US bond repurchase announcement. The market believes that the upper limit of 6 billion US dollars is insufficient. The US Treasury Department said it will buy at least 4 billion US dollars and up to 6 billion US dollars of long-term government debt in the first operation to expand the repurchase program, which shows Bezent's determination to curb the recent rise in borrowing costs. US bonds continued their earlier decline after the announcement, which indicates that the size of the announcement was smaller than some investors expected. It remains to be seen how successful the expanded purchasing program will be. Yields fell after plans were first announced last month, but then picked up. The benchmark 10-year yield reached its highest point since 2023 last week. “The challenge is always whether the impact of these interventions can continue without larger fundamental changes,” said Guha, an economist who worked for the New York Federal Reserve. Moreover, the largest repurchase operation does not mean that the Ministry of Finance will definitely buy that amount of treasury bonds. However, in repurchases of long-term nominal debt, the sector tends to buy the full size, and has failed to do so in only 2 out of 52 such operations since the program was relaunched in 2024.
Sources: Pakistan demands that Iran restrain the Houthis. According to reports, Saudi, Pakistani and Iranian sources said that after the Houthis in Yemen increased their attacks on Saudi Arabia, Pakistan has issued a warning to Iran on behalf of Saudi Arabia to restrain its Houthis in Yemen. Due to the existence of defense agreements between Pakistan, Saudi Arabia and Turkey, Pakistan's warning to Iran has significant weight. A senior regional diplomat said that in the past 24 hours, Pakistan has conveyed this message to Iran, urging Tehran to use its influence to stop the Houthis from attacking Saudi Arabia. A senior Iranian official confirmed that Pakistan conveyed this message to Tehran on Tuesday, and Tehran's response was: “Iran does not control the Houthis.” However, two Iranian sources said that Tehran requested the Houthis to launch an attack on Saudi Arabia last week. Tehran has promised additional funding and weapons, while several commanders of Iran's Revolutionary Guard Corps have gone to Yemen to coordinate the attack. A Pakistani source said that Saudi officials have met with senior military representatives from Pakistan and Turkey in Riyadh to coordinate the response. The three countries agreed that Saudi forces would not enter Yemen, and any response would be sent from Saudi territory.
Bezent publicly pressured the Bank of Japan to raise interest rates and claimed that he had asymmetric information. US Treasury Secretary Bezent's public pressure campaign to push for the appreciation of the yen raised the market's expectations that the Bank of Japan will carry out monetary austerity actions that have not been seen in more than a generation. If policymakers fail to fulfill them, the market may experience turmoil. In an extraordinary case of verbal pressure from the market, the US Treasury Secretary boasted on Tuesday that he had “asymmetric information” about the Bank of Japan's next move and claimed to be a “bookmaker.” At an event at Southern Methodist University in Texas, the former hedge fund trader wasn't limited to comments from the central bank, claiming that he knew what the “Japanese policymakers” had plans in general. Bezent didn't specify what he wanted, but just last week, he publicly called on Japanese officials to “do the right thing” on interest rates. The market is already expecting an interest rate hike of 25 basis points next week, and the pressure is increasing to ask Governor Kazuo Ueda to convey a strong enough message of future austerity at the meeting so as not to disappoint the market and erase recent gains in yen. Bezent's remarks highlighted his unusual degree of participation in the formulation of Japan's economic policy, which is the largest foreign holder of US debt. At the end of July, he coordinated with Japan's Minister of Finance for the first joint intervention since 1998 to support the yen.
The EIA expects a gradual recovery in Middle East oil supply, and the price of Brent oil falls back to 74 US dollars/barrel in 2027. According to the EIA short-term energy outlook report, Middle East oil production is expected to rise in the next few months, mainly due to the gradual increase in oil transportation in the Strait of Hormuz and the use of alternative export routes outside the region. However, the EIA assumes that restrictions on Middle Eastern oil exports will continue until the end of this year, so crude oil production in the region is expected to remain below the pre-conflict average until the second quarter of 2027. The EIA estimates that the average spot price of Brent crude oil in the second half of 2026 is about 90 US dollars/barrel. As oil production increases and inventories recover in 2027, the Brent price is expected to gradually drop to an average of 74 US dollars/barrel.
[Individual Stock News]
Apple (AAPL.US) released the first folding-screen iPhone Duo starting at $1999. Apple released the first folding screen phone, the iPhone Duo. When unfolded, it is equipped with a 7.6-inch inner screen, which is the largest display of the iPhone in history; when folded, it uses a 5.4-inch external screen, which is equivalent to 90% of the iPhone 18 Pro. Both screens support ProMotion, always-on display, and up to 3,000 nits of outdoor brightness. The new machine uses a grade 5 titanium body and a precision hinge composed of more than 100 components, supports IP68 dustproof and waterproof, and integrates Touch ID into the side buttons. The iPhone Duo is equipped with a 2-nm A20 Pro chip and a custom heat sink. The continuous performance is up to 35% higher than the iPhone 17 Pro, and supports split-screen running two apps at the same time. Equipped with a 48-megapixel main camera and a 48-megapixel ultra-wide-angle camera, the folding design also supports functions such as taking selfies with the rear camera and real-time preview of the external screen. The new machine uses a dual battery architecture and supports up to 44 hours of video playback when using the external screen. The iPhone Duo offers two color schemes, Starry White and Night Sky, as well as 256GB, 512GB, 1TB, and 2TB capacities. Prices start at $1999 in the US; pre-orders will begin on October 16 and officially go on sale on October 23. The first batch will be launched in more than 70 countries and regions, including China.
Dow Chemical (DOW.US) is considering clearing 35% of Sadara's shares or Saudi Aramco to take over to increase its holdings. People familiar with the matter said that the world's leading materials science company Dow is considering exiting its $20 billion chemical joint venture with Saudi Aramco as part of the US company's reshaping investment portfolio amid the industry's long-term downturn. As of last year, Dow held 35% of the shares in a joint venture called Sadara Chemical, and Saudi Aramco held the remaining shares, which could take the opportunity to acquire Dow's shares and increase its holdings. Other strategic or financial investors may also bid for Dow's holdings, according to people familiar with the matter. No final decision has been made, and the company may eventually decide not to trade. Sadara was founded in 2011 to develop a comprehensive chemical park with a total investment of over $20 billion. It operates 26 production units and produces more than 3 million tons of chemicals and plastics each year. During the investment process, Dow had exposure to Sadara's debt, including a guarantee of a $500 million revolving credit line to help finance its potential funding shortfall. According to Dow, Sadara withdrew $80 million from this amount in the fourth quarter of 2025.