Costco Earnings Put Consumer Strength in Focus 24/09/2026
Market Wrap
U.S. stocks fell Wednesday as Treasury yields surged, with stronger-than-expected economic data reinforcing expectations that the Federal Reserve may need to raise interest rates again.
The S&P 500 dropped 0.75% to 7,706.03, while the Nasdaq Composite slid 1.13% to 26,936.04. The Dow Jones Industrial Average lost 352 points, or 0.68%, to finish at 51,511.59.
Bond yields jumped after stronger purchasing managers' index readings pointed to continued resilience in the U.S. economy. The 10-year Treasury yield climbed as high as 5.135%, its highest level since 2007, while the 2-year yield reached 4.947%, the highest since May 2024.
The data added to concerns that persistent inflation and economic strength could force the Fed to continue tightening monetary policy. Markets moved to price in a greater chance of another quarter-point rate increase in October.
Higher yields weighed broadly on equities. Utilities fell 1.7%, while consumer discretionary and communication services dropped 1.5% and 1.4%, respectively. Energy was the strongest sector, gaining about 1.1% as crude prices advanced.
Oil also returned to the inflation narrative. Brent crude climbed about 3.9% to $103.08 a barrel, while West Texas Intermediate rose 1.8% to $92.16, adding to concerns that elevated energy and transportation costs could keep price pressures persistent.
Geopolitical developments remain another source of uncertainty following talks between U.S. and Iranian officials in New York this week.
Attention now turns to Thursday's Trump-Xi summit in Washington. The U.S.-China trade truce, tariffs, rare-earth supplies and artificial intelligence are among the issues expected to feature in discussions. The existing trade truce is due to expire Nov. 10, making any signals about its extension particularly important for markets.
Thursday's calendar includes weekly jobless claims, while Darden Restaurants (DRI) reports before the opening bell and Costco Wholesale (COST) reports after the close.
AI Leaders Call for Global Safety Standards as Risks Mount
OpenAI CEO Sam Altman and Anthropic CEO Dario Amodei are calling for greater international cooperation on AI safety, urging governments to establish common standards for measuring the capabilities and risks of increasingly powerful models.
Speaking before the United Nations Security Council, both executives stressed the need for global coordination. Amodei went further, proposing targeted agreements banning certain uses of AI, including applications involving biological weapons.
The comments follow Amodei's recent push for AI companies to slow development when necessary for safety, an approach that received public support from Altman and Elon Musk. Amodei warned that poorly managed AI could pose a risk to humanity.
There is less agreement across the industry. Meta CEO Mark Zuckerberg and Nvidia CEO Jensen Huang have favored companies setting their own pace rather than an industrywide slowdown.
The debate is also becoming increasingly geopolitical, with AI safety expected to feature in U.S.-China discussions as governments weigh how to balance rapid development with the risks of increasingly capable systems.
Stocks on the Move
- Astrana Health (ASTH): Shares sank 6% after the AI-powered healthcare company disclosed a material data breach involving unauthorized access to private and confidential information. The investigation remains ongoing.
- Royal Caribbean (RCL): Shares fell nearly 3% to a 52-week low after the cruise operator announced plans to acquire a 50% stake in the parent company of Sandals and Beaches Resorts for $3 billion. The deal is expected to close early next year and contribute to earnings in 2027.
- McDonald's (MCD): Shares dropped more than 5% to their lowest level since 2022 after CEO Chris Kempczinski warned that elevated inflation and flat traffic are likely to continue weighing on the restaurant industry. U.S. same-store sales grew just 0.8% in the latest quarter as domestic traffic declined.
- Cracker Barrel (CBRL): Shares climbed 5% after the restaurant chain reported stronger-than-expected fiscal fourth-quarter results. Adjusted earnings rose to 99 cents per share, while revenue of $849.3 million topped Wall Street estimates of $834.6 million.
Watchlist: DRI, SNX, BB, COST, MSTR, CVX, META, MSFT, MU, ARM, NVDA
Key Economic Events Today
Economic Data (EST)
- 08:30 AM — USD Core Retail Sales, Retail Sales
- 08:30 AM — USD Unemployment Claims
- 08:30 AM — USD FOMC Member Barkin Speaks
- 08:50 AM — USD FOMC Member Hammack Speaks
- 10:00 AM — USD New Home Sales
- 10:10 AM — USD FOMC Member Paulson Speaks
Earnings
Before Market Open: Darden Restaurants (DRI), TD SYNNEX (SNX), BlackBerry (BB), Uxin Limited (UXIN)
After Market Close: Costco (COST)
