Stocks Fall After Manufacturing Data as Oil Climbs: Markets Wrap
(Bloomberg) — Stocks dropped as a rally in oil prices drove bond yields to multi-decade highs, with the market extending losses after data showed factories are contending with inflationary pressures.
While manufacturing activity expanded at a slower pace in September, a gauge of raw-material prices jumped to the highest since May. Those figures sent equities lower, putting the S&P 500 on track for its worst week since August. A gauge of big banks lost 2%. Benchmark 10-year yields hit the highest since 2002. Brent crude hovered near $100. The dollar climbed.
The prices paid details in the latest manufacturing report reinforce the upside risks to inflation in the near-term, according to Vail Hartman at BMO Capital Markets.
“The concerning element of the report was the sharp rebound in the prices paid index to 77.9,” said Thomas Ryan at Capital Economics. “Although this leaves it slightly below the average of 80 in the second quarter, it won’t provide much reassurance to Fed officials.”
Federal Reserve Bank of Minneapolis President Neel Kashkari said he doesn’t know how high interest rates will have to go to cool prices, adding it’s the central bank’s job to tame inflation after five years of supply shocks.
“We will do what we need to do to get inflation back down to our target,” Kashkari said Thursday during an interview on Bloomberg Television. “Now, the question is ultimately how high” rates have to go, he said. “I don’t know the answer to that.”
Corporate Highlights:
Micron Technology Inc. gave an upbeat forecast for the current quarter, fueled by the AI building frenzy, though the chipmaker warned that rising compensation would weigh on profit margins. Broadcom Inc. has agreed to lend Anthropic PBC as much as $42 billion to lease its chips, according to Reuters, an arrangement that could add to concerns about circular dealmaking between the key players in the artificial-intelligence boom. Amazon.com Inc. has agreed to purchase 690 megawatts of power from Constellation Energy Corp. in a deal that will help the biggest US nuclear operator boost capacity at the only reactors in Maryland. Accenture Plc, the technology consulting firm that’s under pressure to show it can help clients adopt artificial intelligence and can undergo such a transition itself, reported that it booked more business in the fourth quarter than analysts had expected. Tencent Holdings Ltd. agreed to lease advanced AI chips from Oracle Corp. in Southeast Asia in the Chinese company’s biggest such deal yet, the Financial Times reported. Taiwan Semiconductor Manufacturing Co. is weighing a new campus in Texas that would add tens of billions of dollars in new investment to the company’s multiyear expansion into chipmaking in the US. Some of the main moves in markets:
Stocks
The S&P 500 fell 0.2% as of 10:30 a.m. New York time The Nasdaq 100 fell 0.1% The Dow Jones Industrial Average fell 0.4% The Stoxx Europe 600 fell 1.3% The MSCI World Index fell 0.5% Currencies
The Bloomberg Dollar Spot Index rose 0.3% The euro fell 0.4% to $1.1284 The British pound fell 0.3% to $1.3222 The Japanese yen fell 0.3% to 157.88 per dollar Cryptocurrencies
Bitcoin rose 0.6% to $84,104.6 Ether rose 0.6% to $2,697.35 Bonds
The yield on 10-year Treasuries advanced three basis points to 5.31% Germany’s 10-year yield declined three basis points to 3.55% Britain’s 10-year yield advanced two basis points to 5.44% Commodities
West Texas Intermediate crude rose 1.3% to $91.60 a barrel Spot gold rose 0.1% to $4,162.87 an ounce ©2026 Bloomberg L.P.
