Stocks, Bonds Bounce as Oil Halts War-Fueled Rally: Markets Wrap
(Bloomberg) — A pullback in oil prices brought some relief to traders worried about inflation, with stocks and bonds bouncing after recent losses.
West Texas Intermediate crude fell below $90, halting a two-day surge triggered by fighting between the US and Iran over control of the Strait of Hormuz. The respite sent Treasury yields mildly lower after a surge to multi-year highs. The S&P 500 edged up. Dell Technologies Inc. jumped on a solid outlook. Broadcom Inc. is due to report results after the close.
Federal Reserve Bank of New York President John Williams told CNBC there’s evidence inflation continues to ease as the impact of tariffs fades while higher energy prices are not spreading to other services.
In the run-up to Friday’s payrolls report, data showed US companies added jobs at a more moderate pace in August. Fed Chair Kevin Warsh last week acknowledged some pockets of concern, but said the labor market overall is consistent with full employment.
“The labor market is pretty benign right now,” said Michael Landsberg at Landsberg Bennett Private Wealth Management. “There’s a strong argument to be made that the Fed has accomplished its mission on the employment front, and can now continue to pay more attention to inflation.”
Elsewhere, the yen rose about 1%, leaving traders on high alert for the potential that authorities may once again intervene in the foreign-exchange market.
Corporate Highlights:
Dell Technologies Inc. boosted its annual sales forecast by $25 billion in a further sign of surging demand for servers to run artificial intelligence tasks. Nvidia Corp. is in advanced talks to acquire AI startup Hugging Face in a transaction that may total about $14 billion, according to people familiar with the matter. Uber Technologies Inc. is cutting about 3,300 roles, or 10% of its staff globally, in a massive restructuring aimed at reducing management layers and reallocating spending into its ride-sharing, delivery and robotaxi businesses. Chevron Corp. plans to invest $7 billion over the next five years through its joint venture partnerships to more than double crude production in Venezuela, the largest financial commitment so far in a US government-led push to revive the Latin American country’s oil industry. PG&E Corp. plans to defer about $2 billion of investments next year as part of a strategic review of its businesses, a move that comes after it said a proposed revamp of California’s wildfire response didn’t do enough to protect the company and its peers from the cost of such disasters. Some of the main moves in markets:
Stocks
The S&P 500 rose 0.2% as of 10 a.m. New York time The Nasdaq 100 fell 0.2% The Dow Jones Industrial Average rose 0.5% The Stoxx Europe 600 fell 0.2% The MSCI World Index was little changed Currencies
The Bloomberg Dollar Spot Index fell 0.3% The euro was little changed at $1.1602 The British pound was little changed at $1.3510 The Japanese yen rose 0.9% to 158.68 per dollar Cryptocurrencies
Bitcoin fell 0.4% to $77,086.79 Ether fell 0.8% to $2,400.28 Bonds
The yield on 10-year Treasuries declined two basis points to 4.78% Germany’s 10-year yield advanced three basis points to 3.37% Britain’s 10-year yield was little changed at 5.22% Commodities
West Texas Intermediate crude fell 1.4% to $88.98 a barrel Spot gold rose 1.3% to $4,384.94 an ounce ©2026 Bloomberg L.P.
