Easing Bond Selloff Lifts U.S. Stock Futures
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What is the main topic discussed in this episode?
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Relief in bond markets following a record week for yields. Plus, Iran offers to reopen the Strait of Hormuz within a week. Yet
a deal to end the war seems far away. So Trump wants to continue the conversation because that means the Iran is another attacking during the midterms, but he's showing no sign of compromise. And cracks begin to show in Oracle's massive AI data center.
Build out. It's Friday, September 25th. I'm Luke Vargas for the Wall Street Journal, and here is the AM edition of What's News, the top headlines and business stories moving your world today. A global bond sell-off is steadying this morning, giving U.S. stock futures some relief ahead of the open. Helping drive those moves is a retreat in oil prices, following reports yesterday that U.S. and Iranian negotiators in New York are discussing a deal to reopen the Strait of Hormuz. And joining us now to break down how investors are processing a busy week of geopolitical events. I'm joined by Markets Reporter Caitlin McCabe. Caitlin tells us. Tell us more about the mood today, because to be fair, we weren't led to believe there was going to be any major breakthroughs this week, either on Iran at the UN General Assembly or regarding the US-China relationship coming out of the Xi Trump summit.
And yet, in many ways, it seems it's been so quiet that bigger narratives around borrowing costs, around central bank decisions, are the ones that have sort of remained the primary storylines here, in spite of all the pomp and circumstance we've seen in New York and Washington. Is that fair?
Yeah, definitely. The mood in markets is actually fairly quiet today, all things considered, given that it's been such a wild week. But you're definitely correct that markets haven't been paying that much attention to that pageantry that we saw in New York and Washington. And I think there are a few reasons for that. You know, for one, as we reported the summit yesterday between Trump and Xi Jinping was pretty heavy on ceremony. And light on outcomes. The two sides did agree to a modest two-month extension to the trade detente that currently exists, but there's still a ton of issues left to be resolved on everything from rare earths to agricultural purchases to AI. Markets, on the other hand, have been focused on a lot of other signals.
Traders still remain concerned about elevated energy prices. Feeding through to inflation, which will likely prompt the Fed to keep raising rates. And that seems especially true after we had some strong economic data this week that really showed us that the US economy remains quite resilient, which suggests that the economy can handle higher rates and rate increases.
I'm glad you brought up oil, because it it seems as if we may be seeing a bit of profit taking here, and I say that because the underlying price pressure on energy really doesn't seem to have gone away far from it.
Yeah, I mean, I think that's pretty typical to what we've seen with oil prices really throughout this war. You have days where oil is up, you have days where oil is down. Um, and it's really headline driven. So yesterday we had news reports that Iranian and US negotiators were trying to hash out some sort of phase deal that would see Tehran reopen the Strait of Hormuz in exchange for Washington lifting its blockade. And so that's one big Reason that we're seeing oil lower today, but you know, we could very well wake up again next week and oil's up again. The reality is that the backdrop remains pretty unchanged. There are very real and legitimate concerns about oil supply and inventory. You know, we had a report from the International Energy Agency recently that said oil inventories have fallen by 507 million barrels since the conflict began.
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Chapters
4 chapters
1
What is the main topic discussed in this episode?
0:00–3:53
2
What’s driving today’s relief in U.S. stock futures and bond markets?
3:53–7:19
3
How are investors reacting to the calm market mood after a volatile week?
7:19–11:51
4
Why did oil prices retreat and how does the Iran‑Hormuz deal affect markets?
11:51–14:29