Stocks Drift as Oil Gains Keep Traders Cautious: Markets Wrap
(Bloomberg) — Stocks struggled for direction in cautious trading as an escalation in the Middle East pushed oil prices higher, lifting bond yields in Europe and Asia.
Brent crude rose above $97 a barrel following the largest exchange of tanker attacks yet between Iran and the US. Traders also assessed reports of hits on Saudi Arabian oil infrastructure on the Red Sea and a potential accord between Iran and Oman to manage shipping through the Strait of Hormuz.
S&P 500 futures were little changed, while Nasdaq 100 futures rose 0.2%. The Stoxx 600 fluctuated, with economically sensitive sectors among the biggest decliners as inflation concerns drove bond yields higher. South Korea’s memory heavyweights were standouts in Asia as the release of OpenAI’s GPT-6 model continued to fuel renewed enthusiasm for AI.
In currency markets, the yen strengthened to its highest level since February, surpassing the peak reached after July’s intervention. The dollar fell 0.2%. Cash trading in Treasuries and US equities was closed for Labor Day.
Traders are gearing up for a week jam-packed with events that will culminate in Friday’s US inflation print, a reading that will go a long way to determining whether the Federal Reserve raises interest rates or holds them steady.
Ahead of the CPI report, the European Central Bank is widely expected to hike to stave off energy-driven inflation, while Treasury auctions will test demand for bonds with yields near multi-year highs.
“Markets will be adjusting their positioning heading into the Fed’s blackout period. The risk is the Fed turning hawkish and that will be reflected in equities,” said Geoff Yu, a senior macro strategist at BNY. “Bond markets will remain nervy and we remain focused on fixed-income volatility.”
While economic data will likely be the biggest catalyst for markets this week, earnings will also help shape the outlook for key equity sectors. Results from Oracle Corp. and Adobe Inc. on Thursday will give investors a fresh read on AI infrastructure demand and the threat the technology poses to software makers.
For now, the earnings backdrop remains supportive. Investors should buy any dips in equities given a robust earnings outlook, said JPMorgan Chase & Co. strategists.
Even moderate central bank tightening would be unlikely to derail the positive backdrop for stocks unless inflation expectations change materially, said the team led by Mislav Matejka.
“As corporate profits remain on an uptrend, any bout of weakness in equity prices would leave them cheaper,” the strategists wrote. “We believe one should continue using the dips to add.”
Corporate News:
Novo Nordisk A/S stopped two more trials for its experimental heart disease medicine, in a further blow to the drug’s prospects. Abu Dhabi National Oil Co. is in talks with the biggest refining companies in Thailand and Africa to invest in their businesses. Uber Technologies Inc. has hired banks to hold calls with investors this week for a debut euro bond sale. Jaguar Land Rover Automotive Plc will slash some 4,000 jobs as Britain’s largest carmaker grapples with US tariffs, the fallout of a crippling cyberattack and intense competition. Novartis AG suffered a second trial disappointment within a week after the Swiss pharma group’s potential blockbuster heart drug failed in a final-stage study. An Amazon.com Inc. cargo plane overran a runway at Miami International Airport and burst into flames on Sunday, killing at least five people and temporarily shutting down the airport’s runways. Some of the main moves in markets:
Stocks
The Stoxx Europe 600 rose 0.2% as of 2:32 p.m. London time S&P 500 futures were little changed Nasdaq 100 futures rose 0.2% Futures on the Dow Jones Industrial Average fell 0.5% The MSCI Asia Pacific Index rose 1.7% The MSCI Emerging Markets Index rose 1.7% Currencies
The Bloomberg Dollar Spot Index fell 0.2% The euro rose 0.1% to $1.1626 The Japanese yen rose 1.2% to 154.46 per dollar The offshore yuan was little changed at 6.7093 per dollar The British pound rose 0.1% to $1.3538 Cryptocurrencies
Bitcoin fell 0.4% to $79,582.82 Ether rose 0.3% to $2,506.09 Bonds
The yield on 10-year Treasuries was little changed at 4.78% Germany’s 10-year yield advanced three basis points to 3.37% Britain’s 10-year yield advanced two basis points to 5.15% Commodities
Brent crude rose 0.9% to $97.16 a barrel Spot gold fell 0.5% to $4,406.87 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Julien Ponthus.
©2026 Bloomberg L.P.
