Stocks Fall as Oil Gain Stokes Inflation Worries: Markets Wrap
(Bloomberg) — An advance in oil prices sent stocks lower, fueling concerns about higher interest rates just days ahead of key inflation data.
Brent crude approached $100 a barrel, before paring some of its gains, after Saudi Arabia said operations at several energy facilities in the kingdom’s south were halted by attacks. The S&P 500 fell for a second straight session despite a rally in the high-profile group of chipmakers. Money markets priced in an over 50% chance of a Federal Reserve rate increase this month.
The case for an interest-rate hike when the Fed meets Sept. 15-16 may hinge on government inflation data, after the latest jobs report showed broad-based strength in the labor market.
“With geopolitical tensions and oil prices on the rise, the markets may find it difficult to focus on much beyond the inflation discussion,” said Chris Larkin at E*Trade from Morgan Stanley. “Unlike the stock market’s reaction to the jobs report, good economic news this week — that is, cooler inflation — should be treated as good.”
Economists project the consumer price index rose 0.4% in August, an acceleration from a month earlier, due in part to higher gasoline costs. Stripping out the volatile energy and food components, the core CPI is projected to have risen by a more moderate 0.2%, according the Bloomberg survey median ahead of Friday’s report.
That would help bring the annual gauge of underlying inflation down to 2.4%, the smallest year-over-year increase since 2021.
“Energy prices can’t keep rising without impacting the market, and at some point even a tame inflation report later this week may not mean much if crude oil prices remain in the mid-90s, approaching triple digits,” according to Bespoke Investment Group strategists.
On Thursday, the Bureau of Labor Statistics releases the producer price index. Economists expect both the PPI and a core measure to accelerate in August. Those figures are expected to show more of the immediate price impacts from the Iran war and related supply-chain disruptions.
“Brace for a turbulent week, with inflation data set to swing market expectations for a Fed hold or hike next week – with knock-on effects on wider asset markets,” said Krishna Guha at Evercore.
More US consumers in August reported a deterioration in their household finances over the past year, and more expect things will get worse in the year ahead, according to a Fed Bank of New York survey released Tuesday. Views on the labor market were mixed, while inflation expectations improved slightly.
Corporate Highlights:
Qualcomm Inc., the largest maker of smartphone processors, said it’s signed up Amazon.com Inc. as a data center chip customer in a deal that will span “multiple generations” and gives Amazon the right to acquire as much as $4 billion in shares. Intel Corp. climbed after a report from DigiTimes that the company is expected to raise prices. Separately, Northland Securities upgraded the chipmaker to outperform from market perform. ASML Holding NV has won commitments from top chipmakers to use its latest semiconductor production gear, while embarking on a broader agreement to meet surging demand for more powerful artificial intelligence technology. Amazon.com Inc. mandated banks for a debut sterling bond sale, with the deal expected to launch as soon as Wednesday, as hyperscalers keep raising debt across the globe to fund the artificial intelligence buildout. Boston Scientific Corp. said the fallout from a cyber attack has impacted its ability to ship its products to customers and will cause the medical devices company to miss its sales growth and earnings estimates for the year. Bloom Energy Corp., Illumina Inc. and Everpure Inc. will join the S&P 500 in the latest quarterly rebalance, S&P Dow Jones Indices said Friday. Some of the main moves in markets:
Stocks
The S&P 500 fell 0.4% as of 11 a.m. New York time The Nasdaq 100 was little changed The Dow Jones Industrial Average fell 1.1% The Stoxx Europe 600 was little changed The MSCI World Index fell 0.4% Currencies
The Bloomberg Dollar Spot Index fell 0.1% The euro was little changed at $1.1629 The British pound was little changed at $1.3552 The Japanese yen rose 0.2% to 154.02 per dollar Cryptocurrencies
Bitcoin fell 0.8% to $78,561.67 Ether fell 0.4% to $2,485.14 Bonds
The yield on 10-year Treasuries was little changed at 4.78% Germany’s 10-year yield declined three basis points to 3.36% Britain’s 10-year yield declined one basis point to 5.16% Commodities
West Texas Intermediate crude rose 1.4% to $92.75 a barrel Spot gold fell 0.2% to $4,393.73 an ounce ©2026 Bloomberg L.P.
