Geopolitics & Markets

US stocks suffered their worst day since July as inflation accelerated, with CPI at 3.7% and PPI at 6.3%. The Nikkei experienced its third-largest single-day point loss amid a sell-off in AI and chip stocks, as Micron, Nvidia, and other semiconductor firms declined on renewed AI-related concerns.

AWS and Anthropic hired specialized engineers to validate returns on AI investments, while investors sold data centre bonds as AI borrowers face tough market conditions. Nvidia CEO Jensen Huang called for US-China dialogue on AI risks.

Ukraine resumed strikes on Russian refineries, with President Zelenskyy defying Trump’s pressure. The Saudi-led coalition reported Houthi attempts to attack dozens of Saudi facilities, resulting in 17 deaths at Riyadh airport. The IEA agreed to release 100 million barrels from strategic reserves, and the US Navy deployed a carrier strike group with a large drone ship for the first time.

The UK economy grew 0.1% in August ahead of the first Budget under Healey. The US Treasury rejected an IMF debt warning and criticism of its forecasting. Former Everton bidder Josh Wander agreed to plead guilty in a US fraud case, and Democratic lawmakers Warren and Garcia probed banks with ties to Jeffrey Epstein. Cboe announced it would extend options trading hours for major stocks and ETFs.