What’s News in Markets: Markets Digest Shocks, Tokenized Stocks, Buffett Steps Down

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WSJ Your Money Briefing 6 min 2 speakers 3 chapters transcribed just now
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Unknown 0:00
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Imani Moise 0:30
Your money briefing is still on a break, but we'll be back with more personal finance information for you in the future. Until then, here's the news moving the markets this week.
Shradha Dinesh 0:42
Hey listeners, it's Saturday, September 19th. I'm Sharada Dinesh for The Wall Street Journal, and this is What's News in Markets, our look at the biggest stock moves of the week and the news that drove them. Let's get to it. Markets opened on shaky footing on Monday. Damage to Saudi Arabia's crucial east-west pipeline stoked worries about oil shortages and inflation, sending oil prices and bond yields higher. Meanwhile, stocks skidded after the leaders of three of the biggest AI companies called for the technology's development to be slowed down. Then the Fed raised interest rates for the first time in three years. Here's Fed Chairman Kevin Warsh right after the vote. is that inflation is too high and has been for too long.
Shradha Dinesh 1:30
Stocks fell and Treasury yields rose back above 5%, ending the day there for the first time in 19 years. By Friday's close, the 10-year Treasury yield is over 5% again, and the two-year yield ended the day at 4.74%, its highest level since July 2024. Overall, the Nasdaq was up 0.7% this week, the S&P 500 edged lower by about 0.1%, and the Dow fell 1.7%. Brent crude ended the week down 0.7% to around $104 a barrel. Concerns about AI safety led to a rare consensus between the leaders of the world's biggest AI companies, who have been spending tens of billions of dollars to develop ever more powerful models. The CEOs of Anthropic, OpenAI, and SpaceX called for a slowdown in AI's development before their advances create a menace that can't be controlled.
Shradha Dinesh 2:39
OpenAI's Sam Altman even suggested that his company may need to delay its much anticipated IPO to focus on safety. Microsoft joined the chorus, saying it published a provisional code of conduct that it aims to apply when training new AI models. President Trump rejected calls for new AI regulation, calling it, quote, a hoax and a sick conspiracy that would leave the industry in financial ruin and hand China a competitive edge. Shares in Microsoft ended the week 0.4% higher. Chip stocks rebounded, even as investors worried that slower AI progress could temper demand. Shares of NVIDIA ended the week up 0.5%. Marvell technology rose nearly 2%, and Intel stock jumped about 6%.
Shradha Dinesh 3:35
A pair of developments in crypto this week. A top securities regulator cleared a path for trading venues to offer tokenized stocks in the U.S., a landmark decision that may overhaul traditional equity markets. The Securities and Exchange Commission said it would exempt authorized trading venues from certain rules that have prevented trading in digital tokens that mimic shares of listed companies. The SEC's decision comes just two days after a key piece of crypto legislation called the Clarity Act failed to advance past a procedural vote in Congress and is a sign the agency is willing to use its authority to create a path for some crypto and crypto-adjacent offerings to enter mainstream financial markets.
Shradha Dinesh 4:23
Tokenization, or trading regular assets on a blockchain, is gaining momentum. The New York Stock Exchange and Nasdaq are both building platforms for it right now. Qualified U.S. investors can already trade tokenized gold and private funds, so it looks like regular stock trading could be right around the corner. On Friday, Bitcoin broke above $80,000, lifting shares of crypto-linked stocks.

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