Global markets wobble as rate fears, AI deals and major M&A dominate the week
Markets absorb a surge in yields without full-blown panic
Global equities spent much of the week wobbling as bond yields climbed, but the move did not trigger a broader risk-off spiral. Reuters reported that investors were uneasy, yet still not seeing the kind of disorderly selling that usually accompanies a sharp rise in rates.
The backdrop was strong enough earnings and resilient growth expectations. LSEG I/B/E/S data cited by Reuters showed S&P 500 second-quarter profits expected to have risen 53% year on year, while full-year 2026 profits are projected to jump 35%. That helped soften the blow from higher yields, even as traders reassessed valuations in rate-sensitive sectors.
Fed signals keep rate expectations in flux
The biggest U.S. macro catalyst came from the Federal Reserve side, where remarks from Christopher Waller eased some pressure around imminent tightening. Reuters said his comments helped Wall Street rally on September 3, after he signaled support for holding the policy rate steady if inflation continues to cool.
That repricing mattered because markets had been leaning more hawkish. Reuters noted that the implied probability of a Fed rate hike at the September meeting fell to 50.4% from 63.2% the prior day after Waller spoke. The shift reinforced how dependent markets remain on every new inflation and labor print as investors try to guess whether the Fed is done or merely pausing.
ECB hikes again as inflation fears spread across central banks
In Europe, the European Central Bank delivered one of the week’s most important policy moves, raising rates by 25 basis points and warning that energy-driven inflation could persist. Reuters said the ECB’s second hike this year reflected a more hawkish stance as officials weighed sticky prices against still-resilient growth.
The decision raised the stakes for other major central banks. Reuters described a broader shift toward tighter policy across the G7, with markets also watching the Bank of England, Bank of Japan and others for follow-on signals. The message for investors was clear: inflation is no longer looking like a finished story, and policy easing may be further away than many hoped.
Dealmakers stay active in oil, telecom, crypto and private equity
M&A remained lively even with markets choppy. Reuters’ deals roundup highlighted Carlyle expanding in Canada through its purchase of oil and gas firm Parallax, while Sazerac agreed to buy Au Vodka for more than £300 million.
The week also brought several finance and infrastructure transactions. Reuters reported that Dell-linked DFO Management and Sequence moved to take Baldwin private in a $7.7 billion deal, while crypto data provider Kaiko secured $110 million in a funding round led by S&P Global. The mix shows how capital is still flowing into energy, consumer brands, private equity take-privates and digital-market infrastructure, even with borrowing costs elevated.
AI dealmaking keeps expanding around Nvidia and Anthropic
AI remained one of the most consequential business themes of the week. Reuters reported that Nvidia rose after news it would buy Hugging Face for $12.9 billion, a move that would deepen its reach into the developer ecosystem and intensify competition in the AI platform race.
Another major AI story was the reported financing discussion around Anthropic. Reuters said the company is in talks to bring Nvidia in as an anchor investor for an IPO that could seek up to $100 billion at around a $2 trillion valuation. If that deal materializes, it would underscore how AI valuations are being reshaped by the same chipmaker and cloud providers that supply the sector’s core infrastructure.
Corporate shakeups and new bets in tech, media and fintech
Several notable company stories added to the week’s business noise. TechCrunch reported that Matt Mullenweg has returned as chairman and CEO of Automattic with board support after an attempted ouster, a reminder that governance disputes can quickly become strategic questions in founder-led tech companies.
Separately, Reuters said Anthropic launched new tools aimed at financial advisers, connecting its Claude chatbot to investment and wealth-management software used by firms including BlackRock, Charles Schwab and Addepar. That move matters because it pushes AI further into regulated enterprise workflows, where adoption can be slower but stickier, and where product integration can create a durable edge.
A final market-moving example came from Reuters’ broader tech coverage, which suggested that capital and attention are still concentrating around AI infrastructure, software tools and platforms that can monetize enterprise demand. Even amid macro uncertainty, the week made one thing plain: the business cycle is being increasingly defined by rates on one side and AI investment on the other.