US stocks-Wall St slips as steep oil prices stoke inflation concerns ahead of CPI

Now in its seventh month, the U.S.-Iran war has remained an overhang on equities. Tensions flared up again in the region, raising the risk of a wider conflict. Brent crude futures LCOc1 rose 0.77% as Yemen's Tehran-backed Houthis attacked energy facilities and cities in U.S. ally Saudi Arabia on Tuesday. Shipping traffic through the Strait of Hormuz slowed, with Iran threatening on Monday to retaliate for any new U.S. attacks. > "The conflict between the United States and Iran is beginning to look less like a temporary disruption and more like a longer-term backdrop for markets," said Jeff DerGurahian, chief investment officer at loanDepot. Energy .SPNY was the best-performing sector on the S&P 500, rising 1.22%, with Marathon Petroleum MPC.N and Occidental Petroleum OXY.N up 1.96% and 1.63%, respectively. Elevated yields on risk-free U.S. Treasuries have in recent weeks made it less attractive for investors to take on the added risk of buying stocks. The yield on the benchmark 10-year Treasury note US10YT=RR rose 0.22 basis points to 4.7862% on Tuesday. The major U.S. stock indexes edged lower on Tuesday as fresh hostilities in the Middle East pushed oil prices higher, while markets await inflation data due later this week. The declines follow a roller-coaster stretch that saw investors rushing to readjust rate-hike expectations after commentary from Federal Reserve Governor Christopher Waller and a stronger-than-expected jobs report. The truncated week after the Labor Day holiday will be dominated by the Consumer Price Index report due on Friday and the Producer Price Index reading on Thursday. Some investors have said inflation readings will hold more weight for the Fed's rate trajectory, given Chair Kevin Warsh's focus on bringing prices down. Traders now see a 58.4% chance of an increase in interest rates this month, according to the CME FedWatch tool. > "Investors should resist treating a rate hike this month as a settled outcome, as the case for one continues to rest on an inflation impulse that has been energy-driven and has yet to show convincing evidence of broadening," Glenmede strategists wrote. At 11:35 a.m. ET, the Dow Jones Industrial Average .DJI fell 519.16 points, or 0.97%, to 52,895.09, the S&P 500 .SPX lost 23.39 points, or 0.30%, to 7,695.21 and the Nasdaq Composite .IXIC lost 16.97 points, or 0.06%, to 26,490.02. Nvidia NVDA.O and Microsoft MSFT.O were down 1.68% and 1.39%, respectively — the biggest laggards among the Magnificent Seven stocks — dragging down both Nasdaq and S&P 500. Apple fell 1.31% a day before an event at which it is expected to unveil its latest products under new CEO John Ternus. Crypto stocks fell as bitcoin retreated from the $80,000 level. Coinbase COIN.O fell 1.88% while Strategy MSTR.O was down 3.59%. Chipmakers rose, helped by optimism around AI. Intel INTC.O gained 8.65%, while Qualcomm QCOM.O added 4.54% after the company struck a deal with Amazon to develop custom AI chips. Declining issues outnumbered advancers by a 1.33-to-1 ratio on the NYSE and by a 1.39-to-1 ratio on the Nasdaq. The S&P 500 posted four new 52-week highs and eight new lows while the Nasdaq Composite recorded 38 new highs and 97 new lows.

US stocks-Wall St slips as steep oil prices stoke inflation concerns ahead of CPI

Oil prices rise as Middle East tensions flare

Wall Street edges lower ahead of inflation data

Big tech, crypto and chip stocks move in opposite directions

Related News

Southwest Gas Holdings announces availability of 2025 sustainability report

Riverview Bancorp publishes fiscal Q1 2027 fact sheet

Verizon signs optical fiber deal with Corning to expand broadband, support AI growth

OpenAI, New York Times case tees up key test of AI training under copyright law

FOREX-Yen hovers near seven-month high, dollar steadies