Market Summary - September 24, 2026
Overview
On September 24, 2026, equity indices experienced a decline as bond yields surged. Wall Street futures were trading approximately 0.2% lower, with Asian indices down around 0.6%. European equity futures indicated potential further losses at the market open.
Geopolitical Developments
U.S.-Iran talks in New York did not yield the anticipated breakthroughs. Iranian President Masoud Pezeshkian stated that Iran would not permit freedom of navigation through the Strait of Hormuz while sanctions and the U.S. blockade remain in effect, highlighting the ongoing challenges in reaching a peace agreement and the significant risk of disruptions to oil and energy flows.
Bond Market Dynamics
The global bond selloff intensified following the strongest U.S. PMI data since 2021 and weak demand at a five-year Treasury auction. The U.S. 10-year yield approached 5.11%, marking a notable increase. This trend has affected bond markets across the Asia-Pacific region, with rising yields in Japan, Australia, and New Zealand, and emerging-market debt also showing weakness.
Monetary Policy Outlook
Investors are increasingly anticipating further tightening from the Federal Reserve, following the first rate hike since 2023. Money markets are now fully pricing in two additional rate hikes over the next three Fed meetings. Fed Governor Michael Barr indicated that more monetary tightening may be necessary to steer inflation back toward the 2% target.
Market Reactions
Higher yields and expectations of further rate hikes have pressured risk assets, including Bitcoin, which has retreated to around $84,000. Oil prices have also seen a pullback, with Brent crude trading near $97 per barrel. Gold prices remain under pressure after a 1.7% decline, trading close to $4,290 per ounce, as higher interest rates diminish the appeal of precious metals.
Australian Economic Data
In Australia, the unemployment rate rose to 4.6% from 4.5%, surpassing the consensus forecast of 4.5%. However, employment increased by 39.5k, significantly above the expected 20k, and the participation rate rose to 67.1% from 66.9%.
Upcoming Economic Indicators
Today, the Swiss National Bank is expected to announce its policy decision, along with Sweden’s Riksbank, both anticipated to maintain current interest rates. Additionally, Germany’s Ifo business sentiment data will be released, followed by U.S. jobless claims and Canadian retail sales data.
Technical Analysis
The AUD/USD currency pair is attempting to recover losses and is testing its 200-day exponential moving average, indicating a potential return to an upward trend. Meanwhile, the Nasdaq 100 futures have seen two consecutive declines but remain above the 30,000 points mark, with key resistance at 30,800 points.