The Saudi market declines 0.45% amid trades worth 2.9 billion riyals

US stock futures fell slightly on Wednesday, as Treasury yields and oil prices returned to the rise, keeping investors cautious ahead of the release of minutes from the Federal Reserve's September meeting.

The Nasdaq index, which is dominated by technology stocks, and the Standard & Poor's 500 ended trading Tuesday at new record levels, driven by optimism related to artificial intelligence and expectations of a strong season for corporate business results in the third quarter, according to Reuters.

On the other hand, the Dow Jones Industrial Average is still about 5 percent below the highest record closing level it recorded on August 5.

But on Wednesday, investor sentiment turned toward more caution as expectations for interest rates and energy costs were reassessed. Brent crude prices returned to above $100 per barrel, which is seen as an important psychological level, in light of continuing concerns about oil supplies.

The yield on 30-year US Treasury bonds rose to its highest level since 2002, recording 5.70 percent, ahead of the release of the minutes of the Federal Reserve’s monetary policy meeting in September, during which policymakers decided to raise interest rates to confront inflation.

According to the Fed Watch tool, affiliated with the CME Group, traders currently see a 78 percent probability that the US central bank will keep interest rates unchanged this month, although markets are still largely pricing in the possibility of raising them in December.

Shares of electronic chip companies declined in pre-opening trading, as “Micron Technology” shares fell by 2.2 percent, and “Marvel Technology” shares fell by 1.2 percent.

SpaceX shares also fell by 2.1 percent, after a report by the Financial Times newspaper stated that the company, which works in the fields of missiles and artificial intelligence, is seeking financing worth $40 billion to finance purchases of Nvidia chips.

On the other hand, Intel shares rose by 1.3 percent, after a Bloomberg report stated that the company would continue to work on Elon Musk’s “Teravab” chip manufacturing project.

By 6:02 a.m. EST, Dow Jones futures fell by 178 points, or 0.34 percent, while Standard & Poor's 500 futures fell by 11.25 points, or 0.14 percent. Nasdaq 100 futures also fell by 129.25 points, or 0.41 percent.

The third-quarter results season begins next week, with a number of major financial institutions expected to announce their results on Tuesday.

Analysts currently expect an overall growth in the profits of Standard & Poor's 500 companies by 30.6 percent during the period from July to September, led by an expected jump of 114.7 percent in the profits of the energy sector, followed by an expected increase of 66.5 percent in the profits of technology companies, according to LSEG data.

Although the expected profit growth of 30 percent is less than the growth of the second quarter, when the index companies recorded a 54 percent increase in profits, investors expect an overall positive season that supports stock markets remaining near their record levels.

In other stock movements, Constellation Brands shares fell 4.5 percent after the Corona beer manufacturer lowered its forecast for its annual operating profit margin.

Asharq Al-Awsat learned that the Saudi-Syrian Business Council is currently working on three new tracks that are still under construction, within an institutional framework aimed at facilitating the entry of Saudi companies into the Syrian market, and paving the way for new sectoral projects during the coming stages.

Saudi-Syrian economic relations have developed since last year, with the arrival of a high-level Saudi delegation to Damascus headed by former Minister of Investment, Engineer Khalid Al-Falih, which included more than 130 businessmen and investors, in a step that reflected the extent of the official and economic interest in strengthening trade and investment relations between the two countries.

The visit witnessed the signing of more than 47 agreements and memorandums of understanding in 11 vital sectors, with total investments exceeding $6.4 billion, including real estate, infrastructure, communications, information technology, industry, and others.

Coordination with the “Syrian Sovereign Fund”

According to the information, a coordination mechanism has been established with the Syrian Investment Authority to form a joint team that studies the development of land and sea logistics corridors, including facilitating direct access for exports, and procedures for the temporary entry of equipment used in implementing projects.

In parallel, the Federation of Saudi Chambers opened a direct channel with the Syrian Sovereign Fund to follow up on investment opportunities available to the Saudi private sector, and to support communication with the relevant authorities in the Syrian market.

The establishment of the Council came at a time when Syria is preparing for a new phase of reconstruction and development, which opens the way for the Saudi private sector to participate in investment projects and various economic sectors, benefiting from its financing and investment capabilities and its experience in project development.

Since its establishment, the Council has begun preparing an action plan for the period from 2025 to 2030, aiming to enhance sustainable economic cooperation between Saudi Arabia and Syria, highlight investment opportunities, support strategic partnerships, and facilitate commercial and logistical procedures for the exports of Saudi companies.

The plan focuses on enabling the Saudi private sector to benefit from reconstruction and development opportunities in Syria, by supporting exports, simplifying procedures, and strengthening regulatory frameworks that provide a more suitable environment for investors, with a focus on sectors that include infrastructure, trade and export development, real estate development, tourism, industry, and food security.

New investments

In this context, the Chairman of the Saudi-Syrian Business Council, Muhammad bin Abdullah Abu Nayan, said that the Council includes in its membership a number of senior Saudi officials and investors with international activity, which enhances its ability to support trade and investment relations between the two countries and achieve its goals.

A delegation from the Saudi-Syrian Business Council visited the capital, Damascus, last August, with the participation of 180 Saudi businessmen, and held joint meetings and more than 15 meetings with government officials, in addition to eight sector meetings and workshops that addressed investment opportunities, challenges, and areas of cooperation.

The visit witnessed the announcement of the “Sham View” project, affiliated with the Saudi “Thara” Real Estate Development and Investment Company, with investments exceeding one billion dollars, in addition to the inauguration of the work of the “Narcisse Damascus” Hotel, affiliated with the Saudi “Boudl” Group of Hotels and Resorts.

The pound sterling hit its highest level against the euro in 16 months on Wednesday, as concerns about the financial situation in France continued to pressure the single currency, despite the pound falling against the dollar, which rose widely.

The euro fell 0.27 percent to 84.49 pence, its lowest level since June 2025, extending its losses for the ninth consecutive session. Against the dollar, the euro fell 0.6 percent to $1.1199, affected by concerns about France’s financial situation ahead of the presidential elections scheduled for 2027, according to Reuters.

The turmoil in bond markets in the euro zone has also reduced expectations for further interest rate hikes by the European Central Bank, at a time when traders are betting that the Bank of England will resume, albeit belatedly, tightening monetary policy to catch up with other central banks.

Unlike the European Central Bank and the US Federal Reserve, the Bank of England has kept interest rates unchanged since the outbreak of the war with Iran, although markets now see an 81 percent probability of raising interest rates at its scheduled meeting in November, according to LSEG data.

The British pound fell 0.3 percent to $1.3239, against a broadly stronger US currency, with higher oil prices supporting the dollar.

British 10-year borrowing costs rose sharply due to the rise in crude oil prices, as the 10-year British government bond yield touched 5.44 percent.

After Britain's long-term borrowing costs last week reached their highest levels since the 1990s, the focus remains firmly on Finance Minister John Healey's first budget, scheduled to be presented on October 28.

“It will be a budget that leans towards fiscal tightening and will ultimately impact growth,” said Dominic Penning, head of G10 FX strategy at Nomura. He added that if the budget includes tax increases, such as raising the capital gains tax, investment may be harmed, which may put greater pressure on the cyclical outlook for the pound compared to its structural outlook.