Japan's central bank raised benchmark interest rates to 1.25%, their highest since 1995, but markets reacted counterintuitively as the yen weakened, bond yields fell, and stocks gained 1.5%. A split 7-2 board decision with two dissenters signaled the BOJ may not adopt an aggressively hawkish stance, limiting the typical currency and bond support from rate increases.
U.S. stock futures were little changed Friday after Thursday's rally following the Federal Reserve's first rate hike in three years. Asian markets posted mixed gains, while U.S. markets recovered from Wednesday's post-Fed decline as investors focused on artificial intelligence-driven profit growth despite higher rate prospects.
Stock futures rose Thursday following the Federal Reserve's first interest rate hike in three years, which triggered a market sell-off on Wednesday. The Fed raised the federal funds rate by a quarter point to 3.75%-4%, with Chair Kevin Warsh signaling potential additional hikes as inflation remains elevated at 3.4%. Asian markets showed mixed performance, while investors await jobless claims and housing data for economic signals.
Stock futures declined Tuesday as the 10-year Treasury yield surged above 5% for the first time since 2007, amid expectations of a Federal Reserve rate hike this week and concerns about U.S.-Iran tensions fueling inflation. Rising Treasury yields and oil prices, coupled with a selloff in AI stocks following safety concerns, pressured equity markets globally.
Global AI stocks fell sharply after Anthropic CEO Dario Amodei called for slowing AI development, with support from OpenAI's Sam Altman and Elon Musk. The sell-off affected major chipmakers and hyperscalers across Asia, Europe, and the U.S., driven by investor concerns that a development slowdown could impact earnings and capital expenditure across the sector.
Stock futures rose modestly Friday ahead of August's consumer price index report, as markets digest weak Thursday trading and elevated oil prices linked to U.S.-Iran tensions. Asia-Pacific indices fell across the board, with South Korea's Kospi and Japan's Nikkei leading declines, while oil surged past $100 per barrel and bond yields hit their highest levels since mid-2023.