Stocks Fall as Oil Jump, Treasury Plan Lift Yields: Markets Wrap
(Bloomberg) — A resurgence in oil prices drove stocks and bonds lower, with losses deepening as the Treasury said it will purchase up to $6 billion of longer-dated government debt.
The reaction shows some investors had expected an even larger increase. Ten-year yields hit the highest since 2023. Brent crude topped $101 as Middle East tensions fueled worries about energy disruptions, adding to bets the Federal Reserve will raise rates to curb potential inflationary pressures. The S&P 500 fell for a third straight day. Apple Inc. unveiled a foldable smartphone.
Iran is ready for a more intense war and will escalate its counterstrikes if the US continues attacking its territory and infrastructure, according to a senior official from the Islamic Republic. Hostilities show little sign of easing, with both sides jockeying for control over the Strait of Hormuz.
“The temperature just got turned up again,” said Kenny Polcari at SlateStone Wealth. “The risk premium is alive and well, and the risk to energy supplies coming out of the Gulf is real.”
Despite the geopolitical risks, the dollar hovered near a seven-month low. The yen rose. Treasury Secretary Scott Bessent challenged traders to test his resolve on boosting Japan’s currency, saying when he wades into markets these days he’s effectively doing so with inside information.
The spike in energy costs comes as traders brace for this week’s key inflation data. The issue of elevated prices and whether the Fed will hike rates for the first time in three years could dominate the Sept. 15-16 policy meeting.
With officials concerned by persistently high inflation, but divided over how monetary policy should respond in the near term, new evidence of price pressures could tilt the Federal Open Market Committee into a hike. Cooler reports are likely to keep the Fed on hold, as it’s been through five previous meetings this year.
The Bureau of Labor Statistics will release August data for the producer price index on Thursday, followed by the consumer price index on Friday.
“A hot CPI print would all but seal a September hike and underpin a firmer dollar,” said Elias Haddad at Brown Brothers Harriman & Co. “A cooler reading would strengthen the case for a hold and leave the dollar vulnerable to a dovish Fed repricing.”
Money markets assigned an around 60% chance of a September Fed hike.
Corporate Highlights:
Apple’s device, called the iPhone Duo, will improve on rivals’ foldable models, which Chief Executive Officer John Ternus compared to two phones glued together. Alphabet Inc.’s Google is spending €13 billion ($15.1 billion) on artificial-intelligence infrastructure in Finland, its biggest European investment, as the Nordic country’s cold climate and carbon-free power make it a magnet for data center builders. Amazon.com Inc. raised £4.25 billion ($5.8 billion) from its debut sterling bond sale, increasing the size of the four-part deal even as orders from investors tailed off. Dell Technologies Inc. is set to raise $5 billion from an investment-grade bond sale that saw booming investor demand as the company rides a surge in revenue from AI servers. Dow Inc. is considering plans to exit its $20 billion chemicals partnership with Saudi Aramco, people familiar with the matter said, as part of the US firm’s efforts to reshape its portfolio amid a prolonged downturn in the industry. Some of the main moves in markets:
Stocks
The S&P 500 fell 0.4% as of 3 p.m. New York time The Nasdaq 100 fell 0.3% The Dow Jones Industrial Average fell 0.6% The MSCI World Index fell 0.5% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1629 The British pound was little changed at $1.3546 The Japanese yen rose 0.2% to 153.64 per dollar Cryptocurrencies
Bitcoin was little changed at $78,449.88 Ether was little changed at $2,482.56 Bonds
The yield on 10-year Treasuries advanced five basis points to 4.84% Germany’s 10-year yield advanced eight basis points to 3.44% Britain’s 10-year yield advanced nine basis points to 5.26% Commodities
West Texas Intermediate crude rose 3.8% to $96.52 a barrel Spot gold rose 1.1% to $4,402.49 an ounce ©2026 Bloomberg L.P.
