Overnight US Stocks | The Three Major Indexes Continue to Decline, Brent Oil Futures Settlement Price Rises Above $101, SK hynix (SKHY.US) Up 7%

According to Zhitong Finance APP, on Wednesday, the U.S. stock market fell for the third consecutive trading day, while Brent crude futures settled above $101. U.S. Treasury yields surged after the Treasury Department announced it would double the size of long-term government bond buybacks to $600 million. This move follows the Treasury's announcement last month to at least double its government debt buyback program.

[U.S. Stocks] At the close, the Dow Jones Industrial Average fell 405.41 points, or 0.77%, to 52,380.66; the S&P 500 Index lost 37.16 points, or 0.48%, to 7,636.36; and the Nasdaq dropped 168.07 points, or 0.64%, to 26,253.34. Apple (AAPL.US) slipped 0.2%, SK Hynix (SKHY.US) gained 7%, AMD (AMD.US) rose 3%, and Meta Platforms (META.US) jumped 6.5%. The Nasdaq Golden Dragon China Index closed down 2.08%, with Alibaba (BABA.US) losing 2.8%.

[European Stocks] Germany's DAX30 Index fell 408.73 points, or 1.57%, to 25,584.19; the FTSE 100 Index in the UK fell 142.34 points, or 1.32%, to 10,669.32; France’s CAC40 Index dropped 161.31 points, or 1.94%, to 8,156.67; the Euro Stoxx 50 Index declined 100.42 points, or 1.57%, to 6,312.75; Spain's IBEX35 Index fell 305.77 points, or 1.53%, to 19,691.33; and Italy’s FTSE MIB Index lost 307.97 points, or 0.59%, to 51,869.50.

[Asian Markets] Nikkei 225 Index slid 0.19%, Korea Composite Stock Price Index advanced 1.4%.

[U.S. Dollar Index] The dollar index, which measures the greenback against six major currencies, rose 0.03% to close at 98.817 in the forex market. At the New York market close, 1 euro exchanged for $1.1630, higher than the previous session's $1.1629; 1 British pound exchanged for $1.3546, lower than $1.3547; 1 dollar exchanged for 153.60 yen, lower than 153.61 yen; 1 dollar exchanged for 0.8103 Swiss francs, up from 0.8090; 1 dollar exchanged for 1.3806 Canadian dollars, up from 1.3781; and 1 dollar exchanged for 9.6009 Swedish krona, up from 9.5816.

[Cryptocurrencies] Bitcoin dropped 0.52%, trading at 78,137 yuan as of press time; Ethereum fell over 1%, quoted at $2,461.

[Crude Oil] At the close of the day, New York Mercantile Exchange October light crude futures rose $3.02 to settle at $96.05 per barrel, a gain of 3.25%; November Brent crude futures in London climbed $3.29 to close at $101.21 per barrel, up 3.36%.

[Precious Metals] Spot gold was quoted at $4,400.93 per ounce; spot silver at $67.308 per ounce. The World Gold Council stated that global gold ETFs attracted $18 billion in inflows in August, the second largest monthly inflow on record, pushing total assets under management to $615 billion and holdings to a record high of 4,189 tons. North America recorded its third-highest monthly inflow in history, while Europe posted its strongest month ever, with these two regions accounting for nearly 90% of global demand. Gold market activity rebounded significantly, with average daily trading volume in major market segments up 21% month-on-month.

[Macroeconomic News]

U.S. Treasuries Extended Declines Following Buyback Announcement; Market Thinks $6 Billion Cap Is Insufficient. The U.S. Treasury Department announced it would buy at least $4 billion and up to $6 billion of long-term government debt in the first operation of its expanded buyback program, demonstrating Yellen's resolve to contain the recent rise in borrowing costs. U.S. Treasury prices extended their earlier losses after the announcement, suggesting that the size was smaller than some investors had expected. The ultimate effectiveness of the expanded buying program remains to be seen. After the initial announcement of the buyback plan last month, yields fell but later rebounded. The benchmark 10-year yield reached its highest level since 2023 last week. Economist Guha, who formerly worked at the New York Fed, noted, "The challenge is always whether these interventions have sustained impact without greater underlying changes in fundamentals." Also, the maximum size of the buyback does not mean the Treasury will necessarily purchase that amount of bonds. However, in buybacks targeting long-term nominal debt, the department typically buys the full amount—in 52 such operations since the program relaunched in 2024, only twice did it not do so.

Sources: Pakistan Asks Iran to Restrain Houthi Forces. According to reports, sources from Saudi Arabia, Pakistan, and Iran said that after Yemen’s Houthis stepped up attacks on Saudi Arabia, Pakistan issued a warning to Iran on behalf of Saudi Arabia, asking it to rein in the Houthi movement in Yemen. Because Pakistan has defense agreements with Saudi Arabia and Turkey, its warning to Iran holds significant weight. Senior regional diplomats revealed that Pakistan relayed this message to Iran in the past 24 hours, urging Tehran to use its influence to stop the Houthis from attacking Saudi Arabia. A senior Iranian official confirmed that Pakistan conveyed the message to Tehran on Tuesday, to which Tehran responded: "Iran does not control the Houthis." However, two Iranian sources said Tehran last week did ask the Houthis to attack Saudi Arabia. Tehran pledged additional funding and weapons, and several Revolutionary Guard commanders had traveled to Yemen to coordinate the attacks. A Pakistani source said Saudi officials had met in Riyadh with senior military representatives from Pakistan and Turkey to coordinate response measures. The three countries agreed that Saudi troops would not enter Yemen and that any response would be launched from Saudi territory.

Yellen Publicly Pressures Bank of Japan to Hike, Claims to Hold Asymmetric Information. U.S. Treasury Secretary Yellen’s public efforts to boost the yen have increased expectations that the Bank of Japan will enact its first meaningful tightening in more than a generation, and markets may become volatile if policymakers fall short. In an unusual instance of verbal market pressure, the U.S. Treasury Secretary on Tuesday boasted of having "asymmetric information" about the BOJ's next move and described himself as a "market maker." At an event at Southern Methodist University in Texas, the former hedge fund trader did not limit his remarks to the central bank, claiming to know what "Japanese policymakers" overall planned to do. Yellen did not specify what exactly he wanted, but just last week, he publicly called on Japanese officials to "do the right thing" on interest rates. Markets already expect a 25-basis-point hike next week, intensifying pressure on Governor Ueda Kazuo to communicate a sufficiently strong message about future tightening to avoid disappointing markets and erasing the yen’s recent gains. Yellen’s remarks highlighted his unusually deep involvement in Japanese economic policy as Japan is the largest foreign holder of U.S. debt. In late July, he coordinated with Japan’s Finance Minister for the first joint intervention to support the yen since 1998.

EIA Expects Middle East Oil Supply to Recover Gradually; Brent Oil Price to Fall Back to $74/Barrel by 2027. In its short-term energy outlook report, the EIA said Middle East oil production is expected to rise in the coming months, mainly due to the gradual increase in crude transit through the Strait of Hormuz and the use of alternative routes outside the region. However, the EIA assumes that export constraints will remain through the end of the year, so the region’s crude output will likely stay below pre-conflict levels through Q2 2027. The EIA expects Brent spot prices to average about $90/barrel in the second half of 2026 and gradually decline to an average of $74/barrel by 2027 as production increases and inventories recover.

[Company News]

Apple (AAPL.US) Launches First Foldable iPhone Duo Starting at $1,999. Apple introduced its first foldable phone, the iPhone Duo, featuring a 7.6-inch inner display when unfolded—the largest in iPhone history. When folded, a 5.4-inch outer screen is used, with a display area equivalent to 90% of the iPhone 18 Pro; both screens support ProMotion, always-on display, and up to 3,000-nit outdoor brightness. The new device features a five-level titanium body and a precision hinge comprising over 100 parts, is rated IP68 for dust and water resistance, and integrates Touch ID into the side button. The iPhone Duo is powered by a 2nm A20 Pro chip and a custom vapor chamber, offering up to 35% sustained performance improvement over the iPhone 17 Pro and supports running two apps side by side. It is equipped with a 48MP main camera and a 48MP ultra-wide camera; the folding design also supports using the rear camera for selfies and live preview on the outer display. The new device uses a dual-battery architecture, supporting up to 44 hours of video playback when using the outer screen. The iPhone Duo comes in Star White and Night Sky colors, with 256GB, 512GB, 1TB, and 2TB capacities, and starts at $1,999 in the U.S.; preorders begin October 16, official release on October 23, and initial availability in China and over 70 other countries and regions.

Dow Chemical (DOW.US) Considering Sale of 35% Stake in Sadara; Aramco May Buy More Shares. According to informed sources, global materials science giant Dow is considering exiting its $20 billion chemical joint venture with Aramco as part of its strategy to reshape its portfolio amid a prolonged industry downturn. As of last year, Dow owned 35% of the joint venture Sadara Chemical, while Aramco held the rest and may seek to boost its stake by buying Dow’s shares. Other strategic or financial investors may also bid for the stake. No final decision has been made, and the company may eventually decide not to proceed. Sadara was founded in 2011 to develop an integrated chemical complex worth more than $20 billion. It operates 26 production units, producing over 3 million tons of chemicals and plastics every year. During the investment, Dow has been exposed to Sadara’s debt, including a guarantee for a $500 million revolving credit facility to help finance potential shortfalls. According to Dow, Sadara drew $80 million from the facility in Q4 2025.