Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting Club
PRO
LivestreamMenu
- The S&P 500 closes above 7,800 for the first time.
- The gains are driven almost entirely by AI-related stocks.
- Minutes from the Federal Reserve will shed light on the September decision to hike rates.
- India raises interest rates for the first time since 2023.
- Oil marches higher on Middle East disruptions.
- Exclusive: CNBC’s “Squawk Box Europe” speaks to Chevron CEO, Mike Wirth.
Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., Sept. 25, 2026. Brendan McDermid | Reuters
Hello, this is Leonie Kidd coming to you from London. Welcome to another edition of CNBC’s Daily Open.
The AI bulls are trampling the bond market canaries in the coal mine.
Stock markets are soaring to fresh record highs, even as the bond market sounds the alarm on fiscal constraints.
It’s a complex mix for investors to navigate, but more clues will come today with the release of Fed minutes which are expected to shed some light on that controversial September hike.
Read on for more.
What you need to know today
The S&P 500 has peaked at a fresh record high, closing above 7,800 for the first time ever. The gain comes almost entirely from the tech space, with big chipmakers like Advanced Micro Devices and Marvell Technology leading the rally.
The move comes as Treasury yields retreated from their highs but remain at elevated levels.
For a deeper look at the S&P’s defiant trip higher, you can read more here.
Reversal risk
Despite the bullish market sentiment around AI, some investors continue to sound warnings.
Temasek, Singapore’s state-owned investment giant, has cautioned that a reversal in the AI trade poses the biggest risk to markets right now. Chief Investment Officer Rohit Sipahimalani told the Milken Asia Summit that “AI is such a fast-changing environment that things could change quite easily, and you have to be able to pivot.”
Meanwhile, former BitMEX CEO Arthur Haynes has warned that trillions are being “wasted” on the AI boom.
“If you study financial history and you study every single major technological rollout, it always is overbuilt. There always is a crash, and there always is a bailout,” Hayes said.
Minute by minute
Later on Wednesday, investors will be closely watching the release of the minutes from the Federal Reserve‘s last meeting in September. It marked the first hike since 2023 and came despite political pressure from the White House to do the opposite.
The chance of a hike of at least 25 basis points in October stands at 20.5%, from about 51% a week ago, according to CME FedWatch, but markets are pricing in an 84.5% chance of a hike at the December meeting.
India hikes
The Reserve Bank of India has raised interest rates for the first time since 2023, joining the tightening cycle.
Inflation in India has been rising for 10 straight months, while economic growth has remained strong despite external challenges.
Oil marches higher
Oil is driving higher in early trade amid further attacks by Yemen’s Iran-backed Houtis on Saudi Arabia oil infrastructure.
Iran’s move to step up attacks on tankers that are transiting through the Strait of Hormuz has also led to renewed worries over oil supplies among traders.
“Squawk Box Europe” will speak exclusively to the CEO of Chevron, Mike Wirth, about how supply disruptions are playing out at the pump. Catch that interview here.
— Leonie Kidd
And Finally…
British Airways plans record 106-seat business class on Airbus A380 jumbo jets
British Airways is building what it calls the “world’s largest” business-class cabin and ripping out dozens of coach-class seats, the starkest example yet of how airlines are betting their future on high-spending travelers.
The changes are part of a massive overhaul of the British Airways fleet and its ground services, including lounges at its London Heathrow hub.
— Leslie Josephs
Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.Read More
