Pre-Market Briefing — September 20, 2026: Buffett Steps Down, Iran Tensions, EU KIDS Act

Overview

Good morning, it's Sunday, September 20th. U.S. futures are mixed ahead of the open. S&P 500 futures are up about 0.2%, Nasdaq futures are stronger, up nearly 0.4%, while Dow futures are pointing to a slightly lower open. In the bond market, the 10-year Treasury yield is holding just above 5%. WTI crude is trading over

In this show

• Good morning, it's Sunday, September 20th. U.S. futures are mixed ahead of the open. S&P 500 futures are up about 0.2%, Nasdaq futures are stronger, up nearly 0.4%, while Dow futures are pointing to a slightly lower open. In the bond market, the 10-year Treasury yield is holding just above 5%. WTI crude is trading over one hundred dollars a barrel. Gold is catching a bid, up over 0.7%. Overseas, Asian markets closed higher, but European stocks are in the red this morning. We have a lot to get to with our panel, our Markets Analyst and our World Correspondent.
• On the calendar today, the main economic data point has already happened overnight, with the People's Bank of China making its Loan Prime Rate decision. There are no major earnings reports scheduled before the bell. However, after the close, we will get results from Abivax S.A., which could be of interest to those watching the biotech space. It will be a quiet day for Fed watchers, as there are no central bank speakers scheduled to give remarks.
• The big news in single-stock names is the end of an era at Berkshire Hathaway. Warren Buffett, at 96 years old, has stepped down as chairman of the conglomerate he built and has led since 1970. His son, Howard Buffett, who has served on the board for over three decades, will take over the chairman role. This is a planned transition, with Greg Abel continuing in the CEO position he assumed from Buffett earlier this year. It marks a major symbolic shift for one of America's most iconic companies.
• Geopolitical tensions are flaring in the Middle East. President Trump returned to the White House from Camp David amid a rapid escalation with Iran. The situation intensified after Saudi Arabia intercepted a Houthi ballistic missile aimed at its capital, Riyadh. In response, the U.S. State Department has issued new travel warnings for the region. Back-channel communications are reportedly active, with Iran said to have conveyed its conditions for de-escalation to the U.S. through Qatar. The situation remains extremely fluid.
• In the UK, the government has nationalized Chiltern Railways, bringing another passenger rail service back into public ownership. This is the sixth train operator to be taken over by the state under the current Labour government's rail plan. The Department for Transport says the move is aimed at creating more reliable services for passengers. To address overcrowding, the government also plans to introduce 25 additional daily services on the lines starting this December. This continues a significant policy shift in British transportation.
• The European Commission is taking a hard line on social media and minors, proposing new legislation called the 'EU KIDS Act'. The act would effectively ban social media access for any child under the age of 13 and require explicit parental consent for users under 15. The regulations would also place a heavy burden on tech companies like Meta, Google, and Roblox. They would be required to prove their platforms are safe by design and must provide parents with robust tools to manage their children's online activities.
• In cybersecurity, a North Korean hacking group has been linked to a major cryptocurrency theft. The group, known as WaterPlum, reportedly stole approximately $10.7 million by targeting IT professionals with sophisticated fake job offers. The scale of the attack is significant, with over 30,000 devices infected across more than 100 countries, leading to the compromise of over 7,000 crypto wallets. The FBI and Japan's National Police Agency have now issued a joint warning to the tech industry about the ongoing threat.
• Pivoting to US-China relations, high-level talks are set to begin between US Treasury Secretary Scott Bessent and his Chinese counterpart. The agenda is focused on the critical areas of artificial intelligence, trade imbalances, and access to critical minerals. The discussions come as the U.S. aims to counter China's growing dominance in key technologies like industrial robots. Secretary Bessent commented that the U.S. is currently leading the global AI race, which provides a position of strength for these negotiations.
• And finally, Russia has just concluded its multi-day parliamentary elections. Polling stations are now closed across the vast country, and the results are expected to be announced shortly. The elections, which were held over several days, have been closely watched by the international community and have been subject to significant scrutiny from Western governments and observers. The outcome will shape Russia's political landscape for the coming years.
• Let's circle back to that Berkshire Hathaway news. For investors, the question is what comes next. While Greg Abel has been running the day-to-day operations for some time, providing a steady hand, Buffett's role as chairman was a massive source of market confidence. The focus will be on whether the company can maintain its unique culture and long-term investment philosophy without its iconic founder at the helm. Howard Buffett's role as the new chairman will be to act as a guardian of that culture, but the market will be watching for any subtle shifts in strategy.
• Taking a wider view, these geopolitical stories paint a picture of a world in flux. The heightened alert in the Middle East is a significant flashpoint that could escalate without warning. At the same time, the conclusion of Russia's elections will solidify its political direction, potentially creating new dynamics with the West. For markets, this translates to a higher baseline of uncertainty. Investors will be closely monitoring these pressure points, as any miscalculation could have ripple effects across energy markets, defense stocks, and global supply chains.
• Shares of Berkshire Hathaway edged higher after the company announced that investing legend Warren Buffett would step down as chairman. The stock closed up 0.11% at $509.66 following the news of his transition to chairman emeritus. This marks a pivotal moment for the massive $1.09 trillion conglomerate he built over decades. The move places his son, Howard Buffett, into the role of non-executive chairman, signaling a new chapter for one of America's most iconic companies.
• Coinbase Global was one of the market's biggest winners, jumping 11.66% to end the day at $194.25. The surge was fueled by news of a temporary "Innovation Exemption" from the SEC, which will permit certain platforms to trade tokenized U.S.-listed securities. This is a significant regulatory green light for Coinbase, potentially opening up new revenue streams by bridging traditional assets with crypto technology. The stock saw massive trading volume, reflecting high investor interest in the development.
• Qualcomm sank on Friday, closing down 5.82% to $177.72 on heavy trading volume. The semiconductor giant was a notable loser in a mixed session for the technology sector, where rising Treasury yields created headwinds for growth stocks. The drop came despite a lack of specific negative company news, suggesting the move was part of a broader market rotation. The decline erased a significant portion of the stock's gains from the past month.
• And that brings us to the one thing to watch today. All eyes will be on the fallout from those rising Middle East tensions. The Houthi missile attack and the high state of alert between the US and Iran are the primary focus. Any further escalation could directly threaten the flow of oil through the Strait of Hormuz, a critical chokepoint for global energy supplies. The U.S. military is already escorting tankers, but any disruption could cause a sharp spike in oil prices, which would have immediate consequences for inflation and the global economy. Stay tuned as the markets open.