The S&P 500 Index ($SPX) (SPY) is down -0.54% today, the Dow Jones Industrial Average ($DOWI) (DIA) is down -0.32%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.96%. E-mini S&P futures (ESU26) are down -0.50%, and September E-mini Nasdaq futures (NQU26) are down -0.93%.
Major indexes slid to 5-week lows as rising energy prices pushed global bond yields higher. WTI crude oil gained over +3% to a 3.5-month high on concerns that the US-Iran conflict could persist, stoking inflation fears and supporting expectations for further central bank rate hikes. The 10-year UK Gilt yield hit a 19-year high of 5.34%, the 10-year German Bund yield reached a 15-year high of 3.49%, and the 10-year T-note yield climbed to a 2.75-year high of 4.92%.
Stocks extended losses after US August PPI came in hotter than expected, reinforcing concerns about sticky price pressures, while weekly jobless claims held near expectations, pointing to a resilient labor market.
US weekly initial unemployment claims dropped by 1,000 to 206,000, close to the 205,000 consensus estimate, suggesting labor market stability.
US August PPI final demand rose +5.4% year-over-year, above the +5.3% consensus. Aug PPI ex-food and energy gained +4.6% year-over-year, in line with expectations.
Escalating US-Canada trade tensions are also undermining sentiment. On Tuesday, Canada slapped tariffs of 15% to 50% on hundreds of US goods in retaliation for last month’s 50% tariffs on $20 billion of Canadian imports. The US responded by blocking some Canadian products, imposing new tariffs, and seeking to bar Canadian firms from government contracts.
October WTI crude oil (CLV26) rose over +3% to a 3.5-month high. Prices climbed after Iran signaled readiness for a more intense war and threatened escalated counterstrikes if US attacks on its territory continue. Gains were further supported after Saudi Arabia reported August OPEC crude output fell to 6.238 million bpd, the lowest since 1990.
Markets are pricing in a 70% chance of a +25 bp rate hike at the September 15-16 FOMC meeting.
Overseas markets were mixed. The Euro Stoxx 50 fell to a 6-week low, down -0.64%. China’s Shanghai Composite closed -0.43%, while Japan’s Nikkei-225 rose +0.20%.
Interest Rates
December 10-year T-notes (ZNZ6) lost -17 ticks. The 10-year T-note yield rose +7.9 bp to 4.920%, hitting a 2.75-year high. T-notes weakened on higher crude-driven inflation expectations and ahead of today’s $22 billion 30-year T-bond auction. Losses deepened after the hotter-than-expected August PPI reading.
European government bond yields moved higher. The 10-year German Bund yield climbed to a new 15-year high of 3.488% (+4.2 bp), and the 10-year UK Gilt yield reached a 19-year high of 5.343% (+7.5 bp).
The ECB raised the deposit facility rate by 25 bp to 2.50% and stated inflation would remain above 2% for an extended period. It lifted its 2026 Eurozone GDP forecast to +0.9% from +0.8% and kept its 2026 ex-food-and-energy inflation forecast at 2.5%.
Markets are pricing in an 80% chance of a +25 bp ECB rate hike at the October 29 meeting.
US Stock Movers
Chipmakers and AI-infrastructure names led declines. CoreWeave fell over -6%, while ARM Holdings (ARM), Intel (INTC), and Western Digital (WDC) dropped more than -4%. KLA Corp (KLAC), Lam Research (LRCX), Micron (MU), and SanDisk (SNDK) lost more than -3%, and Applied Materials (AMAT), AMD, and Qualcomm (QCOM) fell more than -2%. Nvidia (NVDA) dropped over -2% to lead Dow losers.
Copper stocks declined as copper prices fell over -4% following reports that the White House has not yet decided on refined copper tariffs. Freeport-McMoRan (FCX) slid over -7%, Southern Copper (SCCO) over -6%, Rio Tinto (RIO) over -4%, and Newmont (NEM) over -2%.
Defensive healthcare stocks outperformed. Centene (CNC) rose over +5%, leading S&P 500 gainers, with Elevance Health (ELV) and Molina Healthcare (MOH) also up over +5%. Humana (HUM) gained over +2%, and UnitedHealth (UNH), Cigna (CI), and CVS Health (CVS) rose more than +1%.
Cooper Cos (COO) plunged over -16% after reporting Q3 net sales of $1.07 billion versus a $1.10 billion consensus, and cutting its full-year revenue guide to $4.23–$4.25 billion from $4.29–$4.32 billion.
American Eagle Outfitters (AEO) fell over -13% after reporting Q2 comparable sales of +6.00%, below the +6.47% consensus.
Driven Brands Holdings (DRVN) dropped over -2% after Bank of America downgraded the stock to underperform from buy with a $12 price target.
AeroVironment (AVAV) rose over +7% after Q1 revenue of $480.5 million beat the $455.8 million consensus.
Kymera Therapeutics (KYMR) gained over +1% after Wolfe Research upgraded the stock to outperform from peer perform with a $180 price target.
Earnings Reports (9/10/2026)
Adobe Inc (ADBE), Copart Inc (CPRT), Macy’s Inc (M), Oracle Corp (ORCL).
Also Read
- North Korea spends war windfall on arms, infrastructure
- Kalshi launches ‘perps’ for gold and silver following CFTC approval, expanding futures offerings
- Philippine Defense Chief Reads Chinese Letter Aloud at Seoul Summit
- Anthropic Researcher’s Exit Adds Weight to Rising Concerns Over Uncontrolled AI