S&P 500 Falls as Oil Climbs Before Inflation Data: Markets Wrap
(Bloomberg) — Wall Street traders refrained from making riskier bets before key inflation data, with stocks falling as the lack of a deal to restore energy flows through the Strait of Hormuz lifted oil prices.
US crude settled near $83 as Iran reiterated plans to keep the waterway shut until its demands are met. Oil had earlier dropped after Pakistan signaled optimism about some sort of arrangement over Hormuz. The S&P 500 extended its retreat from record highs. Treasuries edged up ahead of a report that’s expected to show moderation in consumer prices.
Iranian officials have signaled that Tehran and Oman may be nearing an agreement, but it remains unclear whether such a deal would lead to an immediate and full reopening of the strait.
President Donald Trump has recently toughened his stance, saying Tehran should pay reparations for those killed in attacks linked to the Islamic Republic and in domestic protests. His comments came in response to a series of demands laid out by Iran, including compensation for US violations of an interim peace deal.
“Investors have been awaiting a deal for a few weeks, and tangible progress is likely required for yields to fall significantly and stocks to rally further at this juncture,” said Jose Torres at Interactive Brokers.
“We see crude oil prices driving the war narrative, with price swings likely to dictate the pace of escalation and de-escalation,” said Elias Haddad at Brown Brothers Harriman & Co.
Wednesday’s consumer price index is likely to show a cooling of energy-related pressures that had intensified in the months immediately following the start of the war. That may help alleviate some of the anxiety at the Federal Reserve after three officials dissented in July in favor of raising rates.
“I expect the CPI report to continue its downward trend which will further support the case for the Federal Reserve to hold rates steady rather than hiking them, even with last Friday’s weak jobs report,” said Dennis Follmer at Montis Financial.
Data Tuesday showed sales of existing homes fell to a three-month low in July as elevated prices and mortgage rates continued to weigh on the housing market. Meantime, small-business optimism rose to the highest in almost a year as firms ramped up hiring plans and inflation pressures eased.
“A resolution to the Middle East conflict could provide an additional boost to sentiment,” said Jeffrey Roach at LPL Financial. “One particularly encouraging observation from the report’s summary was the reminder that ‘the world has plenty of oil.’ Economic conditions are favorable for risk appetite.”
Corporate Highlights:
Super Micro Computer Inc. gave a sales forecast for the current quarter that topped analysts’ estimates, a sign the booming artificial intelligence market continues to bolster sales of the company’s servers. CoreWeave Inc., a provider of computing that powers artificial intelligence systems, topped analysts’ estimates for second-quarter sales after signing up more customers in a booming market. SpaceXAI is rolling out new artificial-intelligence software that’s designed to act like a team of AI agents fielding assignments throughout the day, marking the latest bid by Elon Musk’s company to keep pace with Anthropic PBC and OpenAI. Apple Inc.’s Jennifer Bailey, the longtime head of Pay and Wallet services, is retiring after more than two decades at the company, adding to a sweeping changing of the guard at the iPhone maker. Anthropic PBC struck a $9.1 billion deal with Riot Platforms Inc., a Bitcoin mining company that recently began selling AI data center capacity, people familiar with the matter said. Some of the main moves in markets:
Stocks
The S&P 500 fell 0.3% as of 4 p.m. New York time The Nasdaq 100 fell 0.3% The Dow Jones Industrial Average fell 0.3% The MSCI World Index fell 0.2% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was unchanged at $1.1543 The British pound was little changed at $1.3508 The Japanese yen was unchanged at 159.29 per dollar Cryptocurrencies
Bitcoin fell 0.9% to $63,515.73 Ether rose 0.1% to $1,880.91 Bonds
The yield on 10-year Treasuries declined two basis points to 4.69% Germany’s 10-year yield declined two basis points to 3.16% Britain’s 10-year yield declined two basis points to 4.96% Commodities
West Texas Intermediate crude rose 1.5% to $83.40 a barrel Spot gold fell 0.5% to $4,370.43 an ounce ©2026 Bloomberg L.P.
