The United States stock market has hit an all-time high as excitement around artificial intelligence continues to fuel a buying frenzy on Wall Street. The S&P 500, the benchmark stock index, closed 0.58 percent higher on Tuesday, topping the previous peak reached in mid-August. Tech stocks were among the top performers, with each of the "Magnificent Seven" apart from Meta closing higher. Amazon led the pack with a 1.95 percent gain, followed by Microsoft and Tesla, which rose 0.78 percent and 0.51 percent, respectively. Apple and Alphabet both rose 0.22 percent, while Nvidia gained 0.14 percent.

The average interest rate on a new five-year fixed mortgage deal has hit 6% for the first time in three years, figures show. The cost of home loans has been rising in recent weeks, as lenders face higher costs amid international concern over rising prices, interest rates, and government borrowing costs. It means home buyers and anyone renewing a fixed deal have seen about 1,500 mortgage deals priced below 5% vanish since the start of September, according to the financial information service Moneyfacts. It described the situation as brutal for borrowers, with the average rate on five-year deals now at 6%, and at 5.98% on two-year fixed mortgages. For borrowers, the interest rate on a fixed mortgage does not change until it expires, usually after two or five years, and a new one is chosen to replace it.

Artificial intelligence (AI) is causing a surge in demand that is fueling inflationary pressure and long-term interest rates, with an impact that may affect the neutral rate of interest, according to Bank of Japan Deputy Gov. Shinichi Uchida. "First, it is a big positive demand shock, which has put upward pressure on the economy and prices. Second, it could affect the supply side, perhaps positively by raising productivity and enhancing capital stock accumulations, which might in turn affect R-star," Uchida said in a speech Monday. R-star is the rate of interest that neither stimulates nor restrains the economy before adding inflation. The neutral rate is essentially R-star plus inflation.

Follow this section to personalize your feed and get instant alerts. Follow Go to your personalized feed WHY FOLLOW? Smart Alerts: Get notified about major news as it happens. Follow this tag to personalize your feed and get instant alerts. Follow Go to your personalized feed WHY FOLLOW? Smart Alerts: Get notified about major news as it happens. Follow this author to personalize your feed and get instant alerts. Follow Go to your personalized feed WHY FOLLOW? Smart Alerts: Get notified about major news as it happens. President Donald Trump photographed at the White House in Washington, D.C. on Sept. 28, 2026. President Donald Trump photographed at the White House in Washington, D.C. on Sept. 28, 2026. Follow this author to personalize your feed and get instant alerts. Follow Go to your personalized feed WHY FOLLOW? Smart Alerts: Get notified about major news as it happens. President Donald Trump sat down for an interview with TIME at the White House on Sept. 28.

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The Federal Reserve raised interest rates for the first time since 2023 as inflation remains elevated. Voters feeling the squeeze on mortgage rates and credit cards may not care.

What's happening to UK interest rates and what does it mean for mortgages? The Bank of England has kept UK interest rates unchanged at 3.75% for a sixth time in a row, keeping them at the lowest level since February 2023. Before the US-Israeli war with Iran, rates had been expected to fall in 2026, but the economic fallout from the conflict has pushed up inflation across the globe, making cuts unlikely and rises a possibility. Interest rates affect mortgage, credit card and savings rates for millions of people. What are interest rates and why do they change?

Policymakers at the Bank of England are expected to keep interest rates unchanged despite price rises accelerating due to the prolonged conflict in the Middle East. The nine-member Monetary Policy Committee (MPC) has been meeting amid a backdrop of increasing global energy prices and interest rate rises around the world. Economists expect the MPC to hold the benchmark Bank rate at 3.75% for a sixth consecutive meeting but analysts are more divided on whether the rate will need to go up before the end of the year. The Bank rate is crucial in setting the benchmark for banks and other lenders in setting interest for individuals and businesses borrowing and saving money. The latest interest rate decision will be announced by the Bank at 12:00 BST on Thursday.

To play this video you need to enable JavaScript in your browser. US interest rates have been raised for the first time in more than three years and could be increased further in a bid to slow rising prices. Fed Chair Kevin Warsh said the move was because inflation is too high and has been for too long, adding that it was a sober and responsible decision. However, Trump said rates should be 1%, or less, because we are the Best Credit in the World - BY FAR. Higher interest rates make borrowing more expensive for people wanting to secure loans, mortgages, and credit cards, but can lead to better returns on savings.

US government borrowing costs climbed to their highest level since 2007 after a jump in oil prices further fuelled concerns about inflation. The effective interest rate on US government bonds over 10 years, known as the 10-year Treasury yield, rose as high as 5.04% but has eased back since. Government bond yields have been rising globally for months, driven by worries that inflation caused by the oil price surge since the start of the US-Israel war with Iran will lead to higher interest rates. The US has been buying back bonds back in a bid to drive the Treasury yield down, with Treasury Secretary Scott Bessent calling the intervention successful. The global benchmark wholesale oil price rose to over $109 a barrel on Tuesday, up from around $86 at the end of August, after renewed concerns about Saudi Arabia's ability to export oil following rising tensions in the region .