Markets & Business

Business

Macro signals, central banks, earnings, and the deals moving capital today.

9 stories · Edition of 2026-09-18 · Curated by AI at Invalid Date

BUSINESS

Wall Street rallies as oil eases and Treasury yields fall

35d ago · Source: reuters

Wall Street closed higher on Thursday as oil prices slipped and Treasury yields declined, allowing markets to move past the Federal Reserve's first interest rate increase in more than three years.

All three major US stock indexes finished sharply higher, with technology stocks leading the advance and pushing the Nasdaq to the top of the leaderboard.

"We're seeing interest in the areas of the market that have been hit hard in anticipation of this Fed rate hike," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut. "And people sort of stepping in, doing a little bit of buying on the pullback."

Crude oil touched a one‑week low after supply‑disruption concerns eased following reports that Saudi oil was moving through Oman. Energy prices have risen sharply since the start of the US‑Israeli conflict involving Iran, contributing to broader inflationary pressures.

On Wednesday, Fed policymakers unanimously raised the Fed funds target rate for the first time since July 2023. The central bank’s statement said it was committed to achieving a "timelier return" to its 2% inflation goal, setting the stage for further tightening later in the year.

"The market is a bit relieved at the Fed's coherence in that they all voted in the same way," said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky. "Fed Chair Warsh re‑emphasized the Fed's independence."

Financial markets are currently pricing in a 53.1% probability of another 25‑basis‑point rate hike at the Fed’s next meeting in October, up from 27.2% a week earlier, according to CME’s FedWatch tool.

Fed Chair Kevin Warsh said at his press conference on Wednesday that the US economy remains strong and that maintaining price stability need not jeopardize the job market, a view reinforced by the Labor Department’s weekly jobless claims report, which showed initial claims falling to near‑1969 lows.

The CBOE Market Volatility Index (.VIX), often called "the fear index," fell to its lowest level in more than a week, moving in line with the easing of crude prices.

"When you have an oil shock this lengthy, it's bound to start to seep into prices across the economy. It's really the only major headwind facing the global economy right now," Mayfield added. "And to get any sort of relief or resolve there is a tailwind for consumers, it's a tailwind for corporates, and it allows the Fed to be less hawkish."

The Dow Jones Industrial Average (.DJI) rose 317.95 points, or 0.62%, to 51,779.85; the S&P 500 (.SPX) gained 85.93 points, or 1.14%, to 7,637.74; and the Nasdaq Composite (.IXIC) added 439.87 points, or 1.69%, to 26,418.30.

Technology (.SPLRCT) was the best‑performing sector of the S&P 500, while financials (.SPSY) and consumer staples (.SPLRCS) were the only sectors to close lower, posting only modest losses.

Gold and silver miners (.XAU) and chipmakers (.SOX) were among the clear outperformers, each rising more than 3%.

Homebuilders (.SPCOMHOME) gained 1.1% after housing data showed single‑family housing starts and pending home sales increased last month.

Interest‑rate‑sensitive banks (.SPXBK) stabilized after a 2.3% selloff on Wednesday, ending the session up 0.2%.

Crypto‑linked stocks rose after the US Securities and Exchange Commission announced a five‑year exemption for tokenized stock trading. Circle Internet Group (CRCL.N) and Robinhood (HOOD.O) rose 5.8% and 5.2%, respectively, while Coinbase (COIN.O) advanced 5.8%.

CoreWeave (CRWV.O) fell 4.2% after announcing plans to raise capital through stock and convertible bond offerings.

Fluence Energy (FLNC.O) tumbled 15.4% after lowering its fiscal 2026 revenue forecast.

Advancing issues outnumbered decliners by 2.38‑to‑1 on the NYSE, with 112 new highs and 164 new lows recorded.

On the Nasdaq, 3,274 stocks rose and 1,483 fell, giving an advance‑decline ratio of 2.21‑to‑1.

The S&P 500 posted 12 new 52‑week highs and 20 new lows, while the Nasdaq Composite recorded 60 new highs and 127 new lows.

Volume on US exchanges was 17.57 billion shares, compared with the 15.37 billion average for the full session over the last 20 trading days.

BUSINESS

Lockheed Martin receives first Patriot interceptor components from General Motors

35d ago · Source: reuters

Lockheed Martin announced on September 17 that it had received its first shipment of critical components for Patriot interceptors from General Motors, less than a month after the two companies finalized a manufacturing agreement. The delivery, which occurred on August 28, marks a 22‑day turnaround from the contract signing on August 6 and represents a significant acceleration over the typical production timeline for such parts.

The components, described as housing elements for the PAC‑3 MSE interceptor, were supplied by GM Defense, a subsidiary of General Motors. Executives from both firms said the rapid exchange underscores efforts to expand the U.S. defense industrial base in response to heightened demand for munitions.

The Patriot missile defense system has been highlighted in recent conflicts involving Israel, Iran and Ukraine. Since Russia’s 2022 invasion of Ukraine, Ukrainian officials have credited Patriot batteries with helping to counter Russian ballistic missile attacks, and President Volodymyr Zelenskiy has repeatedly requested additional launchers and interceptors.

Lockheed Martin plans to invest between $8 billion and $9 billion to increase production of the PAC‑3 MSE, as well as other missile systems such as THAAD and the Precision Strike Missile. The company projects that new facilities and expanded warehousing capacity will grow by nearly 50 percent across more than 20 U.S. sites.

GM Defense President and CEO Stephen duMont said the automaker’s precision‑fabrication expertise would contribute to the manufacture of critical defense capabilities. Lockheed Martin President of Missiles and Fire Control Tim Cahill described the 22‑day delivery as evidence of the company’s focus on faster, larger‑scale execution for the armed forces.

BUSINESS

Qantas ground staff plan nationwide strike over pay and conditions

35d ago · Source: reuters

Hundreds of Qantas ground workers responsible for freight handling and QantasLink regional flights will walk off the job for 24 hours next week, according to the Transport Workers Union. The union announced that strike action will begin on Wednesday in Victoria and continue on Thursday across the rest of Australia. Workers cited disputes over pay rates and employment conditions as the reason for the industrial action. The union's national secretary, Michael Kaine, said disruptions to freight services, including Australia Post deliveries, stem from Qantas management's refusal to engage constructively with staff. A Qantas spokesperson did not comment when approached for response. The airline previously outsourced the roles of over 1,800 ground employees during the pandemic, a move later ruled unlawful by the courts. In 2023, Qantas was fined a record A$90 million after being found in breach of labor laws related to those outsourcing decisions. The strike represents escalating tensions between the carrier and its contracted workforce over wage growth and workplace standards.

BUSINESS

Robotics firms accelerate training systems through virtual simulation advances

A British start-up based in Cambridge has developed a robotics training system that can master new physical tasks in minutes rather than days, according to its founders.

35d ago · Source: bbc · 2 min read

A British start-up based in Cambridge has developed a robotics training system that can master new physical tasks in minutes rather than days, according to its founders. Vsim's approach uses high-speed virtual simulations to train robots like Freddo, a humanoid unit that recently learned to walk, recognize a plastic bottle and grasp it after only a few minutes of digital practice.

The company's founders, Michelle Lu and Kier Storey, describe their method as exploiting modern graphics processing units to run millions of simulated trials within seconds of real-world robot movement. "Our system can look ahead about a second into 20,000 possible future scenarios while the robot operates in unstructured environments," Storey explained. This capability could prove vital for robots navigating homes or workplaces where unexpected human or environmental interactions require rapid adaptation.

Vsim's technology builds on decades-old simulation algorithms but re-engineered them to leverage contemporary GPU architectures. The founders noted that traditional robotics simulation software often fails to align with GPU capabilities, creating performance bottlenecks. Their system now processes tens of thousands of simulated motion combinations per second, enabling real-time strategy adjustments during physical tasks.

The company operates with a team of 10 engineers and emerged from research conducted in 2022. Their work contrasts with approaches from major technology firms like Nvidia, which dominates AI chip markets and maintains extensive robotics software tools including Isaac Sim and Cosmos world modeling platform. Nvidia's Spencer Huang acknowledged ongoing challenges with long-horizon tasks such as multi-step object manipulation, though he noted progress through AI agents that generate virtual training environments.

Academic perspectives highlight both promise and limitations. Rika Antonova, an associate professor at the University of Cambridge working with DeepMind's MuJoCo simulation platform, described Vsim's speed as "very promising" for enabling hundreds of millions of training samples per second. However, she noted that even advanced simulations struggle with modeling real-world complexities like deformable objects and precise cutting tasks.

Vsim plans to expand testing with a second robot named Nacho to evaluate cross-platform compatibility. Their development occurs amid broader industry efforts to improve robot training efficiency, as companies race to create systems capable of reliable operation in unpredictable physical environments.

BUSINESS

India's private hospital expansion widens access gap

35d ago · Source: bbc

India's private healthcare sector has expanded rapidly, adding thousands of hospital beds and new facilities across smaller towns. A recent government panel report highlights that this growth has created a widening affordability gap, with private hospital treatment often five to ten times more expensive than comparable public care. The disparity intensifies for serious conditions such as cancer, heart disease and kidney failure.

The report attributes the surge to aggressive investment by domestic and foreign private equity firms, which funded nearly 600 mergers and acquisitions and over $30bn in transactions between 2022 and 2024. Major hospital chains, including Manipal Health, have attracted billions through public listings, while global investors have poured capital into diagnostics chains and medical institutes.

Critics argue that unchecked commercialisation has led to excessive billing, unnecessary diagnostic tests and inflated prices for routine procedures like childbirth. A recent investigation in Maharashtra found intravenous sets sold at profit margins exceeding 2,800%, underscoring limited price oversight. The panel recommends capping room tariffs at levels comparable to three‑star hotels, regulating essential treatments and diagnostics, and restricting foreign ownership above 51%.

Hospital industry representatives counter that such caps could deter investment and jeopardise returns, which they say average only about 10% — far lower than returns in many other sectors. They contend that comparing hospital costs to hotel rates ignores mandatory compliance expenses such as infection control and patient safety standards.

Public health experts note that private healthcare in India operates largely as a seller’s market, with foreign investors increasingly shaping price structures. They argue that while some proposals, such as a revised goods and services tax regime, could lower costs, broader industry consultation is essential before implementing binding regulations.

The government’s current health spending stands at roughly 1.4% of GDP, below the 2.5% target set a decade ago and far short of the 5% recommended by the World Health Organization. Analysts warn that without increased public investment, reliance on costly private facilities will persist, potentially leaving millions vulnerable to catastrophic out‑of‑pocket expenses as the sector seeks an estimated $300bn in additional capital for expansion.

BUSINESS

Dangote refinery shares surge amid retail investor frenzy

35d ago · Source: bbc

A wave of retail investor enthusiasm swept Nigeria as the Dangote refinery launched its initial public offering, drawing more than four billion shares onto the market. The sale, representing just over 3% of the company, began with a minimum purchase of 10 shares priced at roughly $4. Despite the modest stake, the offering sparked widespread social media activity and celebratory posts among Nigerians who saw the move as a chance to claim a slice of the nation's largest private enterprise.

The surge overwhelmed several local trading platforms, including Bamboo, which reported crashes as demand outstripped capacity. The company later issued an apology for the service disruption. Public affairs analyst Jamil Ubah noted that the excitement reflected a broader hope among ordinary citizens that modest investments could translate into meaningful returns amid a struggling economy.

Young professionals and small‑business owners were among those who rushed to buy shares. Idris Lawal Musa, a 25‑year‑old clothing vendor, purchased 40 shares for 21,000 naira and described the experience as a personal milestone, though he indicated he might sell quickly if the price rises. Financial analyst Shuaib Uwais cautioned that the offering carries risk, warning that share values could decline due to factors such as crude‑oil supply disruptions, operational hurdles, regulatory shifts, and fluctuating demand for refined products.

The Dangote refinery, which began operations two years ago on the outskirts of Lagos, now processes about 700,000 barrels of crude daily, providing a domestic source of refined petroleum that previously required imports. The share sale aims to raise capital for further expansion. While the frenzy highlights a growing appetite for market‑based investment tools among younger Nigerians, experts stress that participation should be based on careful assessment of the company's long‑term prospects rather than short‑term hype.

BUSINESS

US labor market remains steady as mortgage costs squeeze housing sector

35d ago · Source: reuters

The latest weekly unemployment claims fell to 196,000, the lowest level since mid-July, suggesting the labor market continues to hold up despite seasonal fluctuations around the Labor Day holiday. Economists had expected 208,000 claims, making the actual figure unexpectedly lower. The four-week moving average, which smooths out short-term volatility, dropped to 203,250, reinforcing the view of a stable employment environment.

Federal Reserve officials used the data as a backdrop for their decision to raise interest rates by 25 basis points to a range of 3.75%-4.00%, the first increase since July 2023. Chair Jerome Powell indicated that the central bank remains focused on curbing inflation linked to the Middle East conflict, which has driven up energy prices and pressured consumer costs. Policymakers also reiterated that the unemployment rate is consistent with full employment, underscoring confidence in labor market resilience.

A separate Commerce Department report revealed a 1.8% decline in single-family homebuilding permits in August, falling to 878,000 units annually. The slowdown follows a sharp drop in builder sentiment, with the National Association of Home Builders citing rising mortgage rates and material costs as key factors. Mortgage rates have climbed nearly 100 basis points since the conflict began, reaching 6.95% for a 30-year fixed loan, the highest level since early 2025. Housing starts and permits for multi-family units also showed weakness, declining 22.5% and 3.1% respectively.

Despite the housing sector's challenges, broader economic indicators remain mixed. Nonfarm payrolls added 162,000 jobs in August, and the unemployment rate held steady at 4.1%, supported by low layoff rates and limited labor force growth. However, economists caution that immigration restrictions and slower population growth could constrain future hiring. Meanwhile, stock markets responded positively to easing oil prices, though concerns over potential conflict expansion persist. Treasury yields declined slightly, reflecting shifting investor sentiment amid ongoing economic uncertainty.

BUSINESS

Container shipping rates approach pandemic peak amid Middle East tensions

35d ago · Source: reuters

The spot rate for a 40-foot container on the China to U.S. East Coast route has risen to $10,948, according to Xeneta, a freight pricing platform. This level matches the post‑COVID‑19 peak recorded in January 2022 and represents more than a fourfold increase since the start of hostilities involving Iran on February 28. Peter Sand, Xeneta's chief analyst, noted that the current rates are approaching the all‑time high set during the pandemic disruption.

Rising crude oil prices have contributed to higher fuel costs for container ships. On Thursday, the average price for very low sulphur fuel oil used by vessels reached $901.50 per metric ton, up from $543.50 per metric ton on February 27 but still below the March 20 peak of $1,053 per metric ton, as reported by Ship & Bunker. Higher bunker prices have prompted container carriers to impose surcharges, which can be passed on to shippers.

Drewry's World Container Index indicated a nearly 7% week‑over‑week increase in the Shanghai to New York spot rate, reaching $10,394 per 40‑foot container. The index forecasts further gains during the upcoming Golden Week holiday, when retailers such as Walmart and Amazon typically accelerate shipments to avoid factory closures in early October. Analysts suggest that a new record rate could be set later this month, driven by the seasonal surge in cargo volume.

Methodological differences between Xeneta and Drewry mean their spot‑rate figures can reflect varying portions of the market, but both sources agree that the current upward trend is linked to the broader geopolitical tensions affecting fuel costs and shipping demand.

BUSINESS

First-time buyers turn to 100% mortgages as deposit hurdle persists

35d ago · Source: bbc

A growing number of first-time buyers are opting for 100% mortgages that require no upfront deposit, attracted by schemes that promise ownership despite higher interest rates and long-term risks. Conroy, 32, and his partner Amber, 28, both professionals in Manchester, purchased a four-bedroom home for £242,000 in August after qualifying for Skipton Building Society’s Track Record mortgage, which covers the full property value. The couple pays a fixed 5.33% interest rate over five years and faces monthly repayments of about £1,500, comparable to their previous rent. They note that their income allows them to manage the higher payments and plan to overpay early to build equity, while expressing confidence that local property values will not decline.

Similarly, Bronya, 27, and George, 29, used a Lloyds mortgage covering 98% of a £258,000 property in Rhuddlan, North Wales, putting down just £5,000. Their 5.89% fixed rate for five years results in £1,400 monthly payments, roughly matching their former rent. The couple, renovating the home with savings earmarked for improvements, say they intend to remain there long-term and believe the upgrades will increase the property’s value.

Lenders including Lloyds, Santander, Skipton and Yorkshire Building Society have expanded high-loan-to-value products in recent years, citing affordability challenges for buyers unable to save large deposits amid rising prices. These deals typically carry higher rates, stricter eligibility criteria, and limited availability for certain property types or borrowers. Skipton’s zero-deposit offering requires applicants to demonstrate 12 months of consistent rent and credit payments, while Lloyds excludes new-builds and shared ownership homes.

David Hollingworth of L&C Mortgages notes that today’s affordability checks are more rigorous than those before the 2008 financial crisis, when widespread low-deposit lending contributed to market instability. He emphasizes that borrowers should assess monthly payment sustainability and potential interest rate increases, urging caution despite lender safeguards. Both couples acknowledge the possibility of negative equity but argue that their long-term occupancy plans and planned renovations mitigate such risks, reflecting a broader shift in how some first-time buyers navigate an increasingly competitive housing market.