US stocks dipped on Wednesday morning as investors monitored US diplomatic efforts with Iran and China, as well as a recent rally in tech stocks.
The Dow Jones Industrial Average (^DJI) fell by 0.2%, while the S&P 500 (^GSPC) slipped 0.1%. The Nasdaq Composite (^IXIC) dropped by 0.3% after the tech-heavy Nasdaq Composite had posted back-to-back record highs this week.
President Trump is expected to greet Chinese President Xi Jinping at Joint Base Andrews, kicking off Xi’s first visit to Washington, D.C., in 11 years. Experts don’t expect any major policy breakthroughs, but the world leaders are expected to discuss trade, the war in Iran, rare earths, and artificial intelligence.
Any developments in AI policy are sure to generate interest among tech investors, particularly after Anthropic (ANTH.PVT) CEO Dario Amodei penned an essay urging companies to pace AI development cooperatively. A who’s who of Silicon Valley executives, including Nvidia’s (NVDA) Jensen Huang, OpenAI’s (OPAI.PVT) Sam Altman, and Google’s (GOOG) Sundar Pichai, will attend a dinner with Presidents Trump and Xi on Thursday.
Oil prices were little changed as a potential thaw in US-Iran relations remained uncertain. President Trump said US and Iranian officials met for several hours at the UN on Tuesday, rekindling hopes of a truce between the two nations. Brent crude oil futures (BZ=F), the global benchmark, traded below $100 per barrel, while WTI crude futures fell below $91.
On the economic calendar, investors will get a read of economic activity from S&P Global. On the earnings front, shares of Cracker Barrel Old Country Store (CBRL) jumped 8% after the restaurant chain reported better-than-expected results.
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US stocks fall as oil, Treasury yields turn green
The US stock market opened mixed on Wednesday as Treasury yields edged higher and fresh AI disruption concerns weighed on some stocks.
The Dow Jones Industrial Average (^DJI) and Nasdaq Composite (^IXIC) fell by 0.2% at Wednesday’s open while the S&P 500 (^GSPC) slipped 0.1%.
The benchmark 10-year Treasury yield (^TNX) added more friction for stocks, edging closer to 5% on Wednesday.
Oil prices rose slightly early Wednesday after hopes for progress between the US and Iran declined, with contracts on Brent crude (BZ=F) climbing 1%.
A fresh wave of AI disruption fears also weighed on some financial, travel, and insurance stocks this week, including LPL Financial Holdings Inc (LPLA), Charles Schwab (SCHW), JPMorgan Chase (JPM), Booking Holdings Inc. (BKNG), Expedia Group Inc. (EXPE), and Arthur J. Gallagher (AJG).
The move comes after Meta’s (META) AI agent app Muse surged to the top spot in Apple’s App Store. The app automates everyday online tasks, raising fresh questions around how AI agents could pressure fee-earning businesses from financial and travel planning to insurance.
On the earnings front, a handful of consumer stocks moved higher after releasing positive earnings earlier Wednesday. Shares of Cracker Barrel Old Country Store (CBRL) rose 3% after the restaurant chain topped Wall Street’s expectations.
Investors are also showing renewed enthusiasm for Quantum computing stocks including IonQ, Inc. (IONQ) and D-Wave Quantum Inc. (QBTS).
McDonald’s bets on hand-breaded chicken, AI drive-throughs to fend off Burger King
McDonald’s (MCD) is making a long-term bet on artificial intelligence, hand-breaded chicken, and a return of 90s-style restaurants to regain customers who left for other chains, like Burger King.
At its investor day in Chicago, the fast food giant unveiled a new set of ambitious goals and investments as part of its growth plan, following a rocky second quarter that resulted in 0.8% US same-store sales growth versus Burger King’s whopping 8.5% growth.
McDonald’s said it plans to invest $8.5 billion through 2036 to support restaurant tech updates with rent relief and capital. It intends to deliver roughly $5 billion of that investment by 2030.
Franchisees are encouraged to adopt the plan in phases. One franchisee operator told Yahoo Finance they are skating on thin margins with higher ingredient, labor, and rent costs, making another costly redesign difficult, especially in a high-interest-rate environment.
McDonald’s new restaurant design (Courtesy: McDonald’s) Oil prices trade below $100 as Trump floats diesel export ban
Oil prices traded below $100 Wednesday morning as President Trump floated a diesel export ban the prior day.
Brent crude futures (BZ=F) traded down fractionally around $96 per barrel while WTI (CL=F)) futures hovered around $90 a barrel.
Trump said Tuesday that he would support banning exports of diesel fuel.
“I’ve said let’s not send out the diesel,” the president said on the sidelines of the UN General Assembly. “We make a lot of diesel. It could have a little bit of an effect on regular automobile gasoline because when you do that, you know, it’s a sort of a flow. It’s a balance.”
The national average price of diesel fuel has surged to an all-time record of $6.52 per gallon, according to AAA,
The future of AI growth rests on Big Tech’s cash flow tripling to $2 trillion
Big Tech’s AI spending boom is carrying an ever-larger share of the US growth story. So far in 2026, investments tied to the AI build-out have been responsible for roughly one-fifth of US economic growth.
This year alone, the four leading “hyperscalers” — Alphabet (GOOG, GOOGL), Amazon (AMZN), Meta (META), and Microsoft (MSFT) — are expected to spend roughly $800 billion in capital expenditures, or 10 times their spend in 2019, only seven years ago, per Goldman Sachs.
Sustaining that investment, however, will require an equally historic expansion in the cash generated by the companies footing the bill, says Apollo chief economist Torsten Sløk. (Disclosure: Yahoo is a portfolio company of funds managed by affiliates of Apollo Global Management.)
Wall Street is expecting major growth in operating cash flow from the hyperscalers. Chart: Apollo Global Management · Apollo Global Management
Over the past year, the financing for the AI spending race has come increasingly from the debt market, where the hyperscalers are expected to issue $250 billion in global investment-grade debt by the end of 2026.
OpenAI, Anthropic, and SpaceX valuations could dwarf 45 years of IPOs
Yahoo Finance’s Dan Howley reports:
If you’re wondering how huge the AI segment’s march toward the public markets is, look no further than the valuations of the biggest companies in the space.
Take OpenAI (OPAI.PVT), which is raising cash at a $1.2 trillion valuation, according to The Wall Street Journal, throw in Anthropic’s (ANTH.PVT) potential $2 trillion value when it goes public, and SpaceX’s (SPCX) current $2 trillion market cap, and you’re sitting at just north of $5 trillion, The Financial Times reported.
That is more than the value of all of the initial public offerings from 1980 through 2025, The FT says, citing data from University of Florida Warrington College of Business emeritus professor Jay Ritter.
Morning Joe economic analyst and New York Times Op-Ed contributing writer Steve Rattner illustrated the valuations in a chart he posted on X. He also notes that the historical numbers aren’t adjusted for inflation.
Good morning. Here’s what’s happening today.
Economic data: MBA mortgage applications, week ended Sept. 18 (-4.1% previously); S&P Global US manufacturing PMI, September preliminary reading (53.6 expected, 53.9 previously); S&P Global US services PMI, September preliminary reading (56 expected, 56.5 previously); S&P Global US composite PMI, September preliminary reading (56 previously)
Earnings calendar: Cintas Corporation (CTAS), Paychex (PAYX), General Mills (GIS), H.B. Fuller Company (FUL), Cracker Barrel Old Country Store (CBRL)
Catch up on some top stories from overnight:
‘Let’s not send out the diesel’: Trump floats ban on US diesel exports
OpenAI, Anthropic, and SpaceX valuations could dwarf 45 years of IPOs
We’re growing jobs based on AI, not destroying them, claims tech boss
These are the stock market’s winners and losers in the AI agent economy
Qualcomm reveals two new smartphone chips focusing on agentic AI
Dollar holds near 2-month high as markets weigh rate hikes, Iran diplomacy
Reuters reports:
The dollar steadied near its strongest level in two months on Wednesday on prospects of interest rate hikes in the near term, while easing oil prices on hopes for a diplomatic breakthrough to end the Middle East war kept investors on edge.
The euro was at $1.1446 in early trading, loitering near its weakest level since late July. Sterling bought $1.3337. The dollar index, which measures the US currency against six rivals, was at 100.56.
The recent barrage of rate hikes and hawkish rhetoric from major central banks has taken centre stage in currency markets as the US-Israeli conflict with Iran drives oil prices higher and fans inflation worries.
Investors are now anticipating further tightening from central banks, with Federal Reserve officials flagging the possibility of more hikes if inflation does not ease.