Wednesday, 9 September 2026
Escalating Middle East tensions and Brent crude approaching US$100 weighed on US stocks amid inflation and interest-rate concerns, while major AI chip and fibre deals continued to support the technology supply chain.
S&P 500 fell 0.58%
Dow Jones fell 1.18%
Nasdaq fell 0.32%
US 2-year Treasury yield rose approximately 3 basis points to 4.408%.
US 10-year Treasury yield edged up approximately 2 basis points to 4.795%.
News
1.) Middle East conflict spreads to energy facilities and oil tankers, pushing Brent towards US$100
* Houthi attacks on Saudi energy facilities heightened concerns over Middle Eastern oil supplies, pushing Brent crude towards US$98 intraday.
* Iranian media reported that a US missile struck an Iranian oil tanker near Kharg Island, intensifying concerns over potential export disruptions.
* Iran’s military also warned of possible attacks on tankers docked at ports in Kuwait and Bahrain, extending the risk to other Gulf countries.
* Iran plans to establish a new exclusion zone beyond the Strait of Hormuz, warning that vessels entering the designated area could face sanctions, adding uncertainty over shipping routes and compliance.
* Attacks on energy facilities and threats to tankers and shipping lanes could disrupt supplies and raise transportation, insurance and delivery costs, potentially increasing business input prices.
Positive note: Progress in maritime negotiations, repairs to damaged facilities and the resumption of exports could reduce the geopolitical risk premium in oil prices and ease market pressure.
2.) US–Russia diplomatic talks continue, while US trade and sovereignty disputes with allies intensify
* Putin and Trump spoke by phone to discuss recent visits by US envoys to Moscow and Kyiv and efforts to resolve the Russia–Ukraine conflict.
* Trump expressed hopes for a swift end to the war, viewing peace as an opportunity to restore US–Russia economic and trade relations. Both sides agreed to maintain communication, although no comprehensive ceasefire has been announced.
* Separately, Trump posted an “expanded US map” on social media, showing the American flag covering Canada, Mexico, Greenland and Iceland, among other territories. He also proposed renaming New Mexico “New America”.
* Iceland’s prime minister criticised the map as absurd, stressing that national sovereignty should not be treated as a joke. Iceland’s foreign minister summoned the US ambassador to convey the country’s position.
* Canada’s retaliatory tariffs on approximately US$20 billion of American goods took effect on 8 September, with rates ranging from 15% to 50%, translating trade tensions into higher business costs.
* Carney said Canada does not seek to escalate the trade war but needs to accelerate trade diversification and reduce its dependence on the US market.
Market impact: Tariffs and diplomatic disputes increase cross-border supply-chain costs and policy uncertainty, potentially delaying manufacturers’ investments and creating volatility in Canadian assets.
3.) Amazon deepens AI chip ties with Qualcomm as Apple seeks long-term NAND supplies
* Qualcomm and Amazon established a multigenerational product partnership covering custom AI inference chips and data-centre interconnect solutions, helping Qualcomm expand beyond its mobile business.
* Qualcomm granted Amazon warrants to purchase up to 25 million shares at US$161.26 per share, linking potential equity gains to their long-term commercial partnership.
* The warrants vest in stages based on commercial agreements, purchase orders and actual payments. US$60 billion represents the associated procurement ceiling, rather than confirmed revenue or a single order.
* Warrants covering 3.75 million shares have already vested based on initial purchase commitments, while the remaining rights depend on additional conditions being met.
* Separately, media reports indicate that Apple is negotiating a three- to five-year NAND flash supply arrangement with Kioxia, signalling a greater focus on securing supply in advance.
* Reports suggest the arrangement “may have no price cap”, although this remains based on reporting and market speculation, pending confirmation from Apple.
* Reports also indicate that data-centre customers are willing to secure storage capacity through long-term agreements, increasing procurement competition for consumer-electronics manufacturers and potentially strengthening suppliers’ bargaining power.
Market impact: Qualcomm gains a new data-centre growth opportunity, while memory suppliers could benefit from sustained demand and pricing support, although hardware buyers face rising costs.
Positive note: Diversifying chip suppliers and securing storage in advance could reduce supply-disruption risks, making AI deployment and new-product production more predictable.
4.) Corning secures a long-term Verizon fibre deal, while Intel reportedly plans another price increase
* Verizon and Corning signed a multibillion-dollar, multiyear optical-fibre supply agreement, expanding their longstanding partnership.
* Corning will provide more than 80 million miles of high-density optical fibre and connectivity solutions between 2027 and 2032.
* The products will support residential and enterprise broadband expansion while improving the network’s ability to handle high-capacity, low-latency traffic for AI customers.
* The agreement shows AI-related investment extending into telecommunications networks and improves Corning’s order visibility. However, it also includes traditional broadband demand, so the entire contract should not be classified as AI revenue.
* Separately, according to DigiTimes, Intel plans to raise PC processor prices by approximately 10% on 5 October. If implemented, this would mark its third round of price increases since late 2025.
* Reports also suggest Intel is reviewing lower-margin products, with some Small Core products potentially being discontinued as the company prioritises more profitable businesses.
* Higher prices and a better product mix could help restore gross margins, but the outcome depends on customer acceptance, shipment volumes and competitors’ pricing. Overall profit growth is therefore not assured.
Market impact: Long-term fibre orders and expected processor price increases support the companies’ revenue and profit outlooks, although PC manufacturers could face higher procurement costs.
Positive note: Timely deliveries, an improving product mix and stable demand would provide stronger fundamental support for an earnings recovery.
Daily
All times below are Singapore/Beijing time.
Key news and events
* Apple’s autumn launch event: 1:00 a.m. on 10 September, corresponding to 9 September in the US. Watch for new products, pricing and AI features that could stimulate upgrade demand. Product details remain subject to the official announcement.
US economic data
* Tonight at 10:00 p.m.: Second-quarter Quarterly Services Survey, providing insight into service-sector revenue and business activity.
* Markets are primarily awaiting August PPI and initial jobless claims on Thursday at 8:30 p.m., followed by August CPI on Friday at 8:30 p.m., to assess the inflation and interest-rate outlook.
US technology earnings
* Tomorrow after the US market close: Oracle (ORCL) will release its FY2027 first-quarter results on 10 September. Focus on cloud infrastructure growth, order conversion, capital expenditure and cash flow.
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