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Tech rally rolls on, Oil nears US$100 and markets eye US CPI
Confirmed
In Short: Tech stocks in the US saw a decline, while oil prices approached $100 per barrel, as markets await the release of the US Consumer Price Index.
Tech stocks in the US experienced a downturn, with the S&P 500 dropping 0.71% and the Nasdaq falling about 1%. Meanwhile, oil prices neared $100 per barrel, with the 10-year UK gilt yield climbing to near 5.27%. According to Chris Beauchamp, chief market analyst at IG, the situation is particularly acute for the UK, where high debt levels and rising borrowing costs are causing pressure.
The US Nonfarm Payrolls in August exceeded expectations, coming in at 162K, surpassing the forecast of 56K and July’s print of 21K. The Cleveland Fed’s Beth Hammack noted that policy is not restrictive and inflation is too high, suggesting that the Federal Reserve should hike rates to control inflation. Money markets now assign a 61% probability of a rate increase by the Fed in September, up from 54% yesterday.
Anthropic, a leading AI company, is reportedly preparing for a potential IPO in October, with investor marketing possibly beginning by mid-month. The company is expected to delay the publication of its IPO prospectus by two weeks until late September, according to sources familiar with the timeline. The company is reportedly valued at $65 billion, signaling strong demand for AI.
Checkers & Rally’s, a fast-food chain, is responding to higher everyday expenses by offering a $4 Unbeatable Meal Deal, priced at $5 in select markets. CEO Chris Tebben said the company has seen a strong response from consumers when prices come down, with the $4 meal deal improving transaction trends after its introduction in May 2025. The chain is focusing on offering complete meals rather than competing on individual menu items.
What's confirmed
What's still developing
- The S&P 500 dropped 0.71%, while the tech-heavy Nasdaq fell about 1%.
- The swap markets indicate that speculators expect the BoE to hike rates twice in six months.
- The yield on the 10-year UK gilt climbed four basis points on Wednesday morning to near 5.27 per cent, which followed the previous day’s rally that saw yields spike as much as 15 basis points.
- Tebben said Checkers & Rally’s has worked to improve its core food costs, giving the company more room to invest in value offerings while still making the economics work for the company and its franchisees.