Easing Bond Selloff Lifts U.S. Stock Futures

Summary of Easing Bond Selloff Lifts U.S. Stock Futures

by The Wall Street Journal

13m•September 25, 2026
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Overview of What's News (The Wall Street Journal)

This Friday edition of What's News focuses on a calmer start to markets after a rough week for bonds, as U.S. stock futures rise on easing yields and lower oil prices. The episode also covers renewed—but still fragile—diplomacy around Iran and the Strait of Hormuz, Costco’s strong earnings, trouble emerging in Oracle’s ambitious AI data center buildout, and a range of policy and political stories, including vaccine guidance, deportation litigation, and a controversial pro-Trump government ad.

Markets: Bond Selloff Eases, Stocks Get Relief

  • Global bond markets steadied after a record week of rising yields, helping lift U.S. stock futures.
  • Oil prices eased on reports that U.S. and Iranian negotiators are discussing a possible deal to reopen the Strait of Hormuz.
  • Markets are still more focused on:
    • inflation risk from higher energy prices
    • the Federal Reserve’s rate path
    • resilient U.S. economic data
  • The week’s high-level diplomacy in New York and Washington generated more ceremony than concrete breakthroughs.

Key market takeaway

Investors appear to be treating geopolitics as important but still secondary to inflation, yields, and central-bank policy.

Middle East: Iran, the Strait of Hormuz, and Thin Prospects for a Deal

  • Iran reportedly offered a plan that would include:
    • a short pause in attacks
    • reopening the Strait of Hormuz
    • renewed nuclear talks
  • WSJ correspondent Benoit Faucon said the diplomatic outlook remains bleak:
    • both sides say they want dialogue
    • neither side is truly aligned on terms
    • the U.S. is reluctant to compromise
  • There are strategic reasons for caution on both sides:
    • Iran faces severe pressure from the blockade
    • the Trump administration wants to avoid a wider military escalation, especially ahead of midterm elections

Business: Costco Benefits From Consumer Strength

  • Costco reported:
    • rising sales
    • higher profit
    • strong gas business performance
  • The company said younger shoppers are increasingly becoming members.
  • Costco’s mix of app improvements and its traditional “treasure hunt” warehouse experience appears to be resonating.
  • More than a quarter of Costco’s members are now under age 40.

AI Infrastructure: Oracle’s New Mexico Project Faces Friction

  • Oracle’s large AI data center project in New Mexico, known as Project Jupiter, is running into challenges.
  • Reported issues include:
    • local resistance
    • Oracle removing a major land and power partner
    • a force majeure notice sent to a developer to delay rent obligations
    • signs of lender unease, including one bank selling part of the debt
  • The project’s lease reportedly includes “hell-or-high-water” terms, meaning Oracle must keep paying rent even if power isn’t secured.
  • Oracle says the project remains on schedule and that it is fully committed to New Mexico.
  • Oracle stock is down roughly 40% year to date.

Politics and Public Policy

Flu and COVID guidance

  • The Trump administration is not issuing a universal federal recommendation for flu shots this season.
  • Instead, it is leaving the decision to parents and physicians.
  • Physician groups continue to recommend flu vaccination broadly, especially for children.
  • COVID-19 cases are also rising in many states, while access to updated COVID shots is being delayed in some federal programs.

Deportations to third countries

  • The administration asked the Supreme Court to review a ruling that limits deportations to countries other than a person’s own unless they are given a meaningful chance to object.
  • The government said the lower-court ruling disrupted a deportation flight carrying 70 people.

New Jersey leadership controversy

  • New Jersey Gov. Mikie Sherrill is calling on Lt. Gov. Dale Caldwell to resign after an investigation alleged inappropriate conduct and policy violations.
  • Caldwell’s attorney strongly disputed the findings.

Pro-Trump TV ad funded by the government

  • A government-funded ad denouncing communism and praising Trump is drawing scrutiny.
  • The ad claims America will never be communist and appears to use a voice clip from the Republican National Convention.
  • Ethics experts say it may violate federal law; the White House says it was a public service announcement, not political advertising.

Legal Profession: Senior Partners Aren’t Retiring

  • WSJ reports that elite law firms are struggling with senior partners who keep working instead of stepping aside.
  • The key issue is incentive:
    • senior partners want to retain relationships and compensation tied to “origination credit”
    • limited equity-partner slots reduce room for younger lawyers
  • Some firms are now using retirement consultants to help partners envision life after law.
  • Examples of post-law paths include:
    • screenwriting
    • volunteer paramedicine
    • opening wedding venues or wineries

Main Takeaways

  • Markets are easing, but bond yields, oil prices, and inflation fears remain central.
  • Middle East diplomacy is active but fragile, with no clear path to a durable Iran deal.
  • Consumer spending remains resilient, as shown by Costco’s results.
  • Oracle’s AI buildout illustrates the tension between big-tech expansion and local, financing, and execution risks.
  • Several policy stories show the Trump administration taking a more aggressive or controversial approach on health, immigration, and communications.