US stocks rebound, BoJ hikes rates on 18/09/2026

TODAY'S KEY DEVELOPMENTS

1. WALL STREET REBOUNDS AFTER FED RATE DECISION.
The Dow Jones added 0.61% to 51,778.04; the S&P 500 rose 1.14% to 7,637.76; the Nasdaq Composite climbed 1.69% to 26,418.30. Technology led gains with a 2.2% advance, while financials slipped 0.1%. The recovery was supported by a pullback in oil prices and investor digestion of the Federal Reserve's first rate hike in more than three years.

2. FEDERAL RESERVE DELIVERS FIRST HIKE SINCE 2023.
On Sept 16, 2026, the Fed raised the federal funds rate by 25 basis points to a target range of 3.75%-4.00%, the first increase under Chair Kevin Warsh. Median projections signaled one more hike later in 2026.

3. TREASURY YIELDS RETREAT AFTER LONG CLIMB.
The 10-year Treasury yield fell about 9 basis points to 4.928%, snapping an eight-to-nine-day rising streak after hitting the highest level since 2007; the 2-year yield fell to 4.666%. Earlier this week, the average global government bond yield had reached a 19-year high.

4. OIL DECLINES FOR A SECOND SESSION.
WTI October settled down 0.51% at 101.91 dollars a barrel, and Brent November fell 0.95% to 104.82 dollars. US Energy Secretary Chris Wright said Saudi Arabia's East-West pipeline, a key bypass around the Strait of Hormuz, is expected to return to operation soon, easing supply concerns.

5. GOLD, SILVER AND COPPER ADVANCE.
Gold rose about 1.8% to 4,341 dollars an ounce, snapping a three-day slide; silver gained 3.5% to 65.21 dollars. LME copper added 1.8% to 14,491.50 dollars a tonne, its largest daily gain since July, supported by softer US Treasury yields.

6. BANK OF JAPAN RAISES POLICY RATE TO 1.25%.
On Sept 18, 2026, the BOJ lifted its policy rate by 25 basis points to 1.25%, the highest since April 1995. The gap between hikes narrowed to three months from six, while August producer prices rose 7.6% year-on-year.

7. BANK OF ENGLAND HOLDS RATE BUT WARNS ON INFLATION.
The BoE kept Bank Rate at 3.75% in a 6-3 vote and warned rates may need to rise if Middle East-driven inflation intensifies. It halted active gilt sales and overhauled its quantitative tightening plan, helping British 10-year yields ease to about 5.25%.

8. YUAN'S SHARE OF INTERNATIONAL PAYMENTS RISES.
The yuan accounted for 3.26% of international payments in August, up from 3.10% in July, according to SWIFT data. The change reflects a gradual expansion in the currency's use in cross-border trade.

9. US LABOUR DATA IMPROVES WHILE HOUSING SOFTENS.
Initial jobless claims fell 10,000 to 196,000 in the week ended Sept 12, the lowest since mid-July. Housing starts dropped 2.6% to an annualized 1.275 million in August, showing the housing sector remains under pressure from elevated borrowing costs.

10. TRADE AND GEOPOLITICAL TENSIONS REMAIN IN FOCUS.
President Trump threatened very serious tariffs on the EU, or a halt to trade, if the bloc proceeds with plans to make Canada an associate member. He also said the US is nearing the end of its nearly seven-month war with Iran, while Houthi forces claimed fresh strikes on Saudi Arabia's Red Sea oil port of Yanbu. These statements and claims have not been officially confirmed by all relevant parties, and reactions from the EU, Iran and Saudi Arabia are still awaited.

11. GENERAC, MICRON AND ORACLE JUMP ON COMPANY NEWS.
Generac rose about 18% after agreeing to supply industrial backup generators for Amazon data centers. Micron gained more than 5%; Oracle climbed about 5% on reports that OpenAI is in talks to raise capital at a 1.2 trillion dollar valuation.

What to watch today: The EU's official response to President Trump's tariff threat and further developments in the Middle East.

*This information is compiled for reference and reflects multiple sources at the time of publication.*