Top U.S. Stories

  • Inflation cools more than expected. Core PCE prices rose 0.2% in August, holding at 3.0% year over year versus forecasts of 3.3%. Energy costs tied to the Iran war still pushed headline prices higher (CNN). Why it matters: A softer reading eases pressure on the Fed to hike again in October — but the bond market did not take the hint.
  • Yields keep climbing anyway. The 10-year Treasury yield rose to 5.29% as traders looked past the inflation data toward Friday’s jobs report. Why it matters: Borrowing costs for mortgages, car loans and companies stay elevated even as inflation shows signs of easing.
  • Trump and tech CEOs sign an AI safety accord. Leaders from Google, Anthropic, Meta, OpenAI, xAI and Nvidia signed voluntary safety standards at the White House on Tuesday, including independent outside audits.
  • Micron posts record revenue. Fiscal fourth-quarter revenue reached $54.23 billion, beating estimates, with guidance also above forecasts; shares slipped after hours on rising spending plans.
  • U.S. completes Iraq withdrawal. The military said all troops have left Iraq, ending a 12-year mission against the Islamic State group. Why it matters: The pullout reshapes the U.S. footprint in the region while the conflict with Iran is still unresolved.
  • Washington answers Iran. Tehran confirmed it received a U.S. response to its plan to reopen the Strait of Hormuz via Qatari mediators; no details were released.

Compass Insight

Wednesday delivered the kind of inflation report the Fed has been waiting for, yet long-term yields still rose. That tells us the bond market’s worry is not just this month’s price data. Firm economic readings, oil rebounding toward $100 for Brent, and a heavy supply of government debt are keeping a “higher for longer” floor under rates. Stocks split along familiar lines: AI-linked tech held up, while rate-sensitive and old-economy names weighed on the Dow. In the short term, watch Friday’s jobs report — a strong number could revive rate-hike talk despite softer inflation. Over the longer run, the key variables are whether U.S.–Iran talks actually reopen Hormuz, and whether AI earnings like Micron’s can keep carrying the market while borrowing costs stay high.

Markets

  • Dow: 50,906.05 (-443.87, -0.86%); S&P 500: 7,651.54 (-0.25%); Nasdaq: 26,861.06 (+0.24%).
  • For September, the Dow and S&P 500 posted monthly losses, while the Nasdaq gained.
  • December Brent settled at $98.03 (+1.9%) as physical demand stayed strong despite Middle East flows nearing pre-war levels.
  • In Tokyo, the Nikkei 225 jumped 1,272.45 points to 66,753.72, led by chip and AI stocks. The dollar was around 157 yen.

Stocks in Focus

  • Micron (MU): Beat on revenue and earnings with strong guidance, but shares eased after hours as investors weighed heavier capital spending (Micron).
  • Nidec (6594.T): The Japanese motor maker reported a net loss of ¥564.6 billion after an accounting scandal, and its auditor issued a disclaimer of opinion.

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