The latest meeting minutes from the U.S. Federal Reserve indicate that officials anticipate another interest rate hike before the end of 2026, driven by ongoing inflation concerns. Although the specific timing of the hike remains unclear, it is suggested that a stable labor market and high prices could prompt action at the upcoming meetings on October 28 and December 9.
In the bond market, the U.S. Treasury's auction of $39 billion in 10-year notes resulted in a decrease in yields, with the benchmark yield reaching 5.365%, the highest since April 2002. This backdrop contributed to a slight pullback in major U.S. stock indices, with the Dow Jones Industrial Average down 0.66% and the S&P 500 down 0.22%.
In Asia, the Nikkei 225 fell 0.92%, while South Korea's Kospi dropped nearly 2%. On a positive note, Samsung Electronics reported a preliminary operating profit of 107.40 trillion won ($80.2 billion) for the third quarter, marking the first time it has surpassed 100 trillion won, largely due to increased demand for AI technology.
Additionally, Lululemon announced the appointment of Maggie Gauger, the former CEO of Athleta, as its new president and chief product officer, reflecting the competitive dynamics in the athleisure market. In the oil sector, the International Energy Agency's member states have agreed to prioritize the release of diesel stocks to alleviate rising fuel prices