Inflation Concerns Weigh on Stocks

The S&P 500 Index ($SPX) (SPY) is down -0.32% today, the Dow Jones Industrial Average ($DOWI) (DIA) is down -1.04%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.04%.  E-mini S&P futures (ESU26) are down -0.33%, and September E-mini Nasdaq futures (NQU26) are down -0.03%.

Stock indexes are under pressure today as rising crude prices stoke inflation worries.  Crude oil prices are up more than +1% to a 3-month high today, boosting inflation expectations and strengthening expectations that central banks will have to keep raising interest rates to contain inflation.  Rising geopolitical tensions in the Middle East are also dampening market sentiment after the US and Iran exchanged attacks over the weekend and after Houthi rebels today launched attacks on several Saudi Arabian oil facilities.

Also, an escalating trade war between the US and Canada is weighing on market sentiment.  Canada today imposed tariffs of 15% to 50% on hundreds of US goods in retaliation for the action by the US last month to impose 50% tariffs on $20 billion of imports from Canada. 

On the positive side for equities, chipmakers and AI-infrastructure stocks are moving higher, and energy stocks are climbing, limiting losses in the overall market.

Chinese trade news was weaker than expected, weighing on global economic growth prospects.  China Aug imports rose +28.2% y/y, weaker than expectations of +31.0% y/y.  Also, Aug exports rose +25.0% y/y, weaker than expectations of +25.9% y/y.

Oct WTI crude oil prices (CLV26) are up more than +1% today at a 3-month high.  Crude prices are climbing today after the US and Iran exchanged attacks in the Strait of Hormuz over the weekend.  Also, Saudi Arabia said today that attacks from Yemen's Houthi rebels halted operations at several oil facilities.  Saudi Arabia's 400,000 bpd Jazan refinery, which had halted operations in July after an earlier attack, was attacked again today with missiles and drones.  Also, the rebels launched attacks at Saudi Aramco facilities in Abha and Najran, causing fires and injuring several people. Energy trader Vitol group said today that global oil markets are continuing to tighten, with the loss of about 2 million bpd from crude exports in the Middle East, and a further 2 million bpd from Russia because of Ukraine’s drone attacks.

The markets are discounting a 60% chance of a +25 bp rate hike at the next FOMC meeting on September 15-16.

Overseas stock markets are mixed today.  The Euro Stoxx 50 is down -0.18%.  China's Shanghai Composite closed up +0.20%.  Japan's Nikkei-225 Stock Average fell from a 1-week high and closed down -1.70%.

Interest Rates

December 10-year T-notes (ZNZ6) are down by -2 ticks today.  The 10-year T-note yield is up +0.4 bp to 4.786%.  T-notes are under pressure from today’s +1% jump in WTI crude oil to a 3-month high, which boosts inflation expectations.  Supply pressures are also weighing on T-note prices as the Treasury will auction $119 billion in T-notes and T-bonds this week, beginning with a $58 billion auction of 3-year T-notes later today.  Concerns about escalating hostilities in the Middle East are boosting safe-haven demand for government debt and limiting losses in T-notes. 

European government bond yields are moving lower today.  The 10-year German bund yield fell from a 15-year high of 3.398% and is down -2.4 bp to 3.361%.  The 10-year UK gilt yield is down -1.4 bp to 5.162%.

German trade news was weaker than expected.  German July exports unexpectedly fell -0.8% m/m, weaker than expectations of a +0.3% m/m gain.  Also, July imports fell -5.7% m/m, weaker than expectations of -1.0% m/m and the biggest decline in 6.25 years.

Markets are discounting a 100% chance of a +25 bp ECB rate hike at its next policy meeting on September 10.

US Stock Movers

Software stocks are under pressure today, weighing on the broader market.  Atlassian Corp (TEAM), Intuit (INTU), ServiceNow (NOW) are down more than -5%, and Salesforce (CRM), Thomson Reuters (TRI), and Workday (WDAY) are down more than -4%.  Also, Adobe Systems (ADBE) is down more than -3%, and Autodesk (ADSK) and Datadog (DDOG) are down more than -2%.  In addition, Microsoft (MSFT) and International Business Machines (IBM) are down more than -1%.

Biotechnology companies are selling off today after Novartis suffered its third clinical-trial setback in a week after a treatment for a muscle-wasting disease failed in a late-stage study.  Dyne Therapeutics (DYN) is down more than -22% and Sarepta Therapeutics (SRPT) is down more than -10%. Also, Amgen (AMGN) is down more than -8% to lead losers in the S&P 500, Dow Jones Industrials, and Nasdaq 100. In addition, Royalty Pharma (RPRX) is down more than -6%, and Ionis Pharmaceuticals (IONS) is down more than -4%. 

Chipmakers and AI-infrastructure stocks are moving higher today.  The iShares Semiconductor ETF (SOXX) is up more than +2% at a 2.5-week high.  CoreWeave (CRWV) is up more than +9%, and Intel (INTC) is up more than +8%.  Also, Advanced Micro Devices (AMD) and Qualcomm (QCOM) are up more than +4%, and Seagate Technology Holdings Plc (STX), Broadcom (AVGO), Lam Research (LRCX), and Applied Materials (AMAT) are up more than +3%.  In addition, ASML Holding NV (ASML), KLA Corp (KLAC), Marvell Technology (MRVL), SanDisk (SNDK), and ARM Holdings (ARM) are up more than +2%.

Energy stocks and service providers are climbing today, with a +1% jump in WTI crude oil to a 3-month high.  APA Corp (APA) and Valero Energy (VLO) are up more than +2%.  Also, Baker Hughes (BKR), Diamondback Energy (FANG), Marathon Petroleum (MPC), Occidental Petroleum (OXY), Chevron (CVX), ConocoPhillips (COP), Devon Energy (DVN), Slb Limited (SLB), and Phillips 66 (PSX) are up more than +1%. 

Stryker (SYK) is down more than -7% after executives flagged continuing challenges in its peripheral vascular and joint replacement businesses at an industry conference.

Boston Scientific (BSX) is down more than -4% after saying the cyberattack that recently affected operations is likely to have a material impact of Q3 and fiscal 2026 results.

Best Buy (BBY) is down more than -2% after DA Davidson downgraded the stock to neutral from buy, citing valuation concerns. 

Roivant Sciences Ltd (ROIV) is up more than +16% after announcing that a mid-stage trial of its inhaled drug, mosliciguat, met its primary endpoint in a treatment for pulmonary hypertension associated with interstitial lung disease.

Pharvaris NV (PHVS) is up more than +11% after announcing that the phase 3 trial of its drug for the prevention of hereditary angioedema attacks met its primary and secondary endpoints. 

Bloom Energy (BE) is up more than +8% after S&P Dow Jones Indices said the company will replace Molson Coors Beverage in the S&P 500, effective before the start of trading on Monday, September 21.

Rigetti Computing (RGTI) is up more than +5% after signing a definitive pact with the US Department of Commerce for a $100 million award to accelerate superconducting quantum computing R&D.

Earnings Reports (9/8/2026)

Casey's General Stores Inc (CASY) and GameStop Corp (GME).

On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.