AdvertisementAdvertisementMichael Smyth works on the floor at the New York Stock Exchange in New York, Monday, Sep 14, 2026. (Photo: AP/Seth Wenig)16 Sep 2026 03:20AM Bookmark Bookmark WhatsApp Telegram Facebook Twitter Email LinkedInAdd CNA as a trusted source to help Google better understand and surface our content in search results.Read a summary of this article on FAST.Get bite-sized news via a newcards interface. Give it a try.Click here to return to FAST Tap here to return to FASTFAST LONDRES: Oil prices jumped, US bond yields rallied and equities retreated Tuesday (Sep 15) as the Federal Reserve looked set to raise interest rates, with high inflation and AI concerns dominating market sentiment. Brent crude futures again pushed towards US$110 a barrel, while average diesel prices in the United States struck a record high of just under US$6.27 a gallon, heaping pressure on US President Donald Trump ahead of midterm congressional elections."There's no let-up in the volatility rippling through financial markets, with energy prices staying painfully elevated and worries swirling about the knock-on effect for inflation and interest rates," said Susannah Streeter, chief investment strategist at Wealth Club.The yield on the 10-year US Treasury note hit 5.03 per cent, a level last seen in 2007 before the global financial crisis, as investors price in a likely hike in US interest rates.The US Federal Reserve began a rate-setting meeting Tuesday with markets expecting policymakers to pull the trigger on a hike to tackle persistently high consumer prices in the world's biggest economy.Market expectations for a 25-basis-point rate increase have risen sharply after official data published last week showed US annual inflation remaining far above the Fed's target.With the crisis in the Middle East showing little sign of abating and Yemen's Houthi rebels taking control of a crucial outlet for shipping, crude has spiked this month to more than US$100 a barrel.The surge in energy costs has ramped up pressure on central banks to raise borrowing costs.Ahead of Fed meeting, Trump says US should have world's lowest interest rateThe European Central Bank last week lifted interest rates in the eurozone. The Bank of England is forecast to maintain its benchmark rate on Thursday as the UK economy struggles for growth.Wall Street's main indices were lower in late morning trading on Tuesday, following losses in Europe and Asia.There was renewed weakness for technology stocks after executives driving the AI sector said advances in artificial intelligence should be slowed."It looks as if investors are happier reducing some risk now, rather than leaving all their chips on the table, and mostly on the chip sector," said Trade Nation analyst David Morrison.Trump on Monday dismissed fears that artificial intelligence could wipe out humanity, repeatedly calling them a hoax and rejecting global calls to put guardrails around the fast-moving technology.Anthropic chief Dario Amodei, whose company makes the popular Claude AI system, opened the floodgates on Saturday when he called for the sector to slow down.His comments were echoed by OpenAI's Sam Altman and SpaceXAI's Elon Musk.Microsoft on Monday published a "humanist AI code of conduct" as the concerns grew. "AI should not exceed human control. Models should remain subordinate to humanity," read one part.Source: AFP/fsSign up for our newslettersGet our pick of top stories and thought-provoking articles in your inboxSubscribe hereGet the CNA appStay updated with notifications for breaking news and our best storiesDownload hereGet WhatsApp alertsJoin our channel for the top reads for the day on your preferred chat appJoin hereAlso worth readingContent is loading...Expand to read the full storyGet bite-sized news via a newcards interface. Give it a try.Click here to return to FAST Tap here to return to FASTFAST