Investors Watch for Shifts in Rates and AI Growth After Fed Hike | Investing.com

Key Highlights:

• Asian markets rose modestly on Monday as booming demand for AI-related data supported semiconductor stocks. Oil prices fell after reports indicated that Middle Eastern crude supplies remained stronger than previously expected despite the continuing conflict in the Gulf.
• South Korea’s KOSPI advanced 1.7%, driven by a 4% jump in Samsung Electronics, while SK Hynix edged 0.1% higher. China’s CSI 300 rose approximately 0.5%, the Shanghai Composite gained 0.6%, and Hong Kong’s Hang Seng Index climbed 0.6%. Chinese markets benefited from optimism over ongoing U.S.-China trade talks, though investors remained cautious ahead of the upcoming leaders’ summit.
• SoftBank plans to raise more than $11 billion through a multi-currency bond sale to finance its AI expansion, including a follow-on investment in OpenAI expected to close next month.
• Oil prices fell to their lowest level in more than a week on Monday as investors hoped diplomatic efforts surrounding the Iran conflict would advance during this week’s United Nations meetings. Prices also came under pressure from signs of a partial recovery in Saudi Arabian shipments, despite continued attacks by Yemen’s Houthi movement.
• Gold prices were little changed in Asian trading on Monday as investors remained cautious ahead of upcoming U.S.-China talks, while ongoing Middle East tensions continued to influence sentiment. The precious metal stabilized after a modest gain last week, supported by lower Treasury yields following the Federal Reserve’s interest-rate hike and increased clarity surrounding the U.S. economic outlook.
• China held its one- and five-year loan prime rates steady at 3.00% and 3.50%, respectively, for a 16th consecutive month as global central banks maintained a hawkish stance.
• Chinese regulators are slowing humanoid-robot IPOs to assess inflated valuations and reliance on state-backed revenue, following Unitree Robotics’ volatile debut and 55% plunge from its peak.

U.S. stock index futures advanced on Sunday evening as investors remained cautiously optimistic ahead of this week’s scheduled summit in Washington between President Donald Trump and Chinese President Xi Jinping. At 22:14 ET (02:14 GMT), were up 0.35% at 7,739.50, had risen 0.54% to 30,079.50, and had gained 0.27% to 52,220.0.

The upward move followed a mildly positive Wall Street session on Friday, when technology stocks—particularly chipmakers—recovered after suffering sharp losses earlier in the week.

Last week’s market performance was mixed, with the rising to 5%. The edged higher as investors continued rotating among growth sectors, while the remained broadly stable. In contrast, the and small-cap dropped significantly, reaching three-month lows.

Washington and Beijing Prepare for High-Stakes Talks on Tariffs and AI

Markets gained confidence as U.S. and Chinese officials launched trade discussions ahead of a bilateral summit later this week. Treasury Secretary Scott Bessent said Sunday that he would meet Chinese Vice Premier He Lifeng in New York, helping establish a more positive tone for the negotiations.

President Donald Trump and Chinese President Xi Jinping are scheduled to meet in Washington on Thursday. The meeting will mark Xi’s first state visit to the United States during Trump’s second term, while Trump visited Beijing earlier this year.

Trade relations between the world’s two largest economies remain strained, with tariffs expected to be a central issue at the summit. Trump and Xi are also likely to discuss artificial intelligence and its regulation, while the approaching expiration of the current trade truce in early November adds urgency to the talks.

US Economic data and Earnings Calendar:

A relatively quiet economic-data week will provide an early glimpse into September’s business activity. Preliminary S&P Global U.S. and indexes, due Wednesday, will show whether both sectors are sustaining their recent momentum.

Investors will also watch Thursday’s weekly report, as continuing claims for the week ending Sept. 12 coincide with the reference period for the monthly household survey used to calculate the . New-home-sales data are also due Thursday.

Friday’s calendar features durable-goods orders, offering insight into capital-spending trends, followed by the University of Michigan’s index.

Costco Wholesale’s (NASDAQ:) quarterly results could provide fresh insight into the health of the U.S. consumer. Drivers bought a record amount of the warehouse club’s discounted fuel as gas prices surged last quarter, although Costco has cautioned that higher fuel sales do not necessarily lead to stronger in-store spending. With oil and gasoline prices rising again, investors will also focus on reports from major food and dining companies, including General Mills, Cracker Barrel, and Darden Restaurants, the parent of Olive Garden and LongHorn Steakhouse. General Mills, which makes Cheerios and Cocoa Puffs, warned of “significant consumer stress” earlier this year and lowered its outlook, while some restaurant chains have recently benefited from value-oriented offerings.

Economic calendar:(week of Sep 21 -25, 2026)

https://www.investing.com/economic-calendar, a more detailed calendar

Key Earnings calendar:(week of Sep 21 – 25, 2026)

https://www.investing.com/earnings-calendar, a more detailed calendar

Costco Wholesale Corporation (COST) is scheduled to release its fourth-quarter earnings after the market closes on Thursday, Sept. 24. Analysts expect the retailer to report earnings of $6.53 per share, up from $5.87 per share in the same quarter last year. Quarterly revenue is projected to reach $94.89 billion, compared with $86.16 billion a year earlier.

COST shares have declined 17% from their May high of $1,093. The stock has fallen below the key $905 support level and reached its lowest point since January, setting up a crucial test for investors awaiting management’s growth outlook amid elevated inflation. For the full fiscal year, earnings per share are expected to rise to $20.50 from $18.20, while annual revenue is projected to surpass $301 billion.

Weekly US Indices Probability Map:

• The U.S. weekly market probability map for Sep 21 – 25, 2026 suggests “Markets Brace for September’s Most Challenging Week”.
• Sentiment readings are derived from a historical data-based scoring system including geopolitical risk.

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Ali Merchant is a seasoned financial market professional with expertise in Technical Analysis, Treasury & Capital Markets, Trading, Sales, Research, Training, & Fund Management. He is the founder of www.twtlearning.com providing financial education, research and advisory services to fund & hedge fund managers and family offices.

He has been trading FX, FX options, US stocks & options, Indices, Commodities & Oil, and Metals Futures. He has a CMT charter, an AAPTA membership, and a CMT Canada membership. He has worked in various roles and organizations in North America and the GCC, such as ABN Amro bank, Thomson Reuters, Refinitiv, MAK Allen & Day Capital Partners, and Bridge Information Systems.

He is regarded as an excellent mentor and has trained more than 2000+ users in North America, Gulf countries & Asia on financial markets & products, active and passive trading, and technical analysis strategies. He emanated technical analysis daily and weekly reports for BridgeNews Chicago bureau and updated technical analysis reports on Bloomberg and Reuters while working with ABN Amro bank treasury & capital markets. Has moderated and produced technical analysis reports for Thomson Reuters (Refinitiv) users’ chat rooms and trained users on technical analysis techniques and models. Conducted TA & Global Markets outlook workshop with central banks, sovereign funds, global & regional banks & family offices.