AfD surges in German state elections as Moscow refinery hit in record drone attack — September 21, 2026

Top U.S. Stories

• The Federal Reserve raised its benchmark rate by 25 basis points to 3.75%-4.00% on September 16, its first hike in three years, saying inflation remains elevated. Why it matters: Higher U.S. rates widen the pull on capital worldwide and raise borrowing costs for mortgages, credit cards, and business loans just as households are also facing pricier energy.
• A Delaware judge ordered Fox Corp. to hand over hundreds of documents in a shareholder suit examining how Rupert Murdoch and the board handled past scandals. Why it matters: A ruling that board members lacked independence could send the case to trial and reshape scrutiny of Murdoch-family governance.
• A week of Houthi attacks knocked out Saudi Arabia’s East-West pipeline, pushing oil prices up more than 5% in a week. Why it matters: Sustained Gulf supply disruption can keep energy prices and inflation pressure elevated even after Friday’s pullback.
• Republican Sen. Bill Cassidy urged President Trump to be “radically honest” about vaccines as the U.S. records its most measles cases in more than three decades.
• Grandparents are providing extensive unpaid care and financial support as families confront rising childcare costs.

Global Watch

• Germany’s far-right AfD won 37.9% in Mecklenburg-Western Pomerania and 16.2% in Berlin, according to ARD projections, while Chancellor Friedrich Merz’s CDU fell to a historic 4.9% in Mecklenburg-Western Pomerania.
• Moscow’s mayor described the weekend drone barrage as the largest ever against the capital. The Moscow Oil Refinery and a residential building were damaged, and the regional governor reported two deaths and 20 injuries.

Compass Insight

The throughline this week is a “rate-hike chain reaction.” Saudi pipeline attacks pushed oil higher and intensified inflation concerns as the Fed delivered its first hike in three years and Japan’s central bank also raised rates. Normally a Fed hike would support the dollar and pressure other currencies further — which is exactly what’s happening to the yen, still trading near 156-157 per dollar despite Japan’s own tightening, because the pace of Japanese hikes remains slower than the Fed’s.

For households, the near-term risk is a double hit: oil-driven inflation raising fuel and utility costs directly, compounded for non-U.S. consumers by a stronger dollar making imports pricier. Watch short-term for whether Gulf tensions ease and oil prices come off their highs; over the medium term, the key question is how many more hikes the Fed and BOJ deliver before pausing — that path will matter more for mortgages and portfolios than any single week’s headline.

Markets

• Dow Jones: 51,682.64 (Sept. 18 close), -95.40 (-0.18%)
• S&P 500: 7,650.50 (Sept. 18 close), +0.17%
• Nasdaq Composite: 26,522.55 (Sept. 18 close), +0.39%
• WTI crude: $100.30/barrel (Sept. 18 close), -1.58%
• Brent crude: $103.87/barrel (Sept. 18 close), -0.91%
• USD/JPY: ¥157.89 per the ECB reference rate on Sept. 18

U.S. stocks were mixed as markets digested the Fed’s hike, with the Dow slipping slightly while the Nasdaq edged higher. The 10-year Treasury yield reached 5.04% earlier in the week, its highest since 2007, weighing on rate-sensitive sectors.

Stocks in Focus

Energy majors have been the standout story of 2026: ExxonMobil is up roughly 40% year-to-date and Chevron around 44%, driven by the run-up in crude prices tied to Gulf supply disruptions. Fox Corp. shares are one to watch given the fresh discovery order in its shareholder litigation.

---

Auto-generated and AI-written. Not investment advice.