Overview
- Global markets turned risk-off on Monday as investors reacted to a stronger U.S. core inflation print that raised expectations of an imminent Fed rate increase.
- Market pricing now shows roughly an 88–92% probability of a 25 basis point Fed hike at the Sept. 16 meeting and higher Treasury yields pushed the dollar and safe assets up.
- Public calls by AI leaders to slow development triggered sharp losses in semiconductor and AI-linked stocks and weighed on tech-heavy indexes in New York.
- Attacks in the Middle East and a reported temporary closure of Saudi Arabia’s East-West pipeline sent Brent and WTI above $100 per barrel and added to inflation concerns.
- Emerging-market stress intensified as Argentina’s sovereign risk climbed toward about 494–497 basis points, the Mexican peso weakened to ~17.1482 per USD, copper fell to roughly US$14,018.50/tonne, and FEMSA’s $280 million accelerated share repurchase helped Mexico’s BMV recover late in the session.