Posted on 09/10/2026 9:23:57 AM PDT by Miami Rebel
Stocks dropped Thursday after U.S. oil prices topped $100 a barrel, amid growing fears of higher inflation from a prolonged war in the Middle East.
The Dow Jones Industrial Average dropped 315 points, or 0.6%. The S&P 500 fell 0.5%, while the Nasdaq Composite slid 0.5% too.
Higher oil prices continued to weigh on sentiment, as the war between the U.S. and Iran stretched into a seventh month. U.S. West Texas Intermediate futures for October jumped above $100 per barrel. Futures for the international benchmark Brent crude for November delivery spiked above $105 a barrel.
The jump in oil prices pushed the 10-year Treasury yield above 4.9%, the highest level since November 2023.
High beta chip stocks that have led the bull market traded lower on fears higher rates and oil could slow the economy. Intel and Micron Technology both fell 4%.
A tame wholesale inflation report failed to allay fears coalescing around higher rates and oil prices. August’s producer price index, a measure of wholesale inflation, rose a seasonally adjusted 0.4% for the month, in line with the Dow Jones consensus. On an annual basis, that put PPI at 5.4%, which is still well above the Fed’s 2% inflation target.
The report comes ahead of the closely watched consumer price index on Friday. Both numbers feed into the Fed’s primary inflation gauge, the personal consumption expenditures price index, which won’t be released until after the Fed’s interest rate vote Sept. 16.
“The PPI release itself was inconclusive, in that doesn’t really help to settle the question of ‘hike or no hike’ from the Fed next week, but WTI oil prices surging back above $100 and Treasury yields hitting new highs is certainly raising the stakes for investors ahead of tomorrow’s crucial CPI report,” wrote Stephen Coltman, head of macro at 21shares.
Fed funds futures were last pricing in a 74% likelihood of a quarter point hike following the conclusion of next week’s meeting, according to the CME FedWatch Tool.
The major averages are coming off a three-day slide, after the Treasury Department said it would buy back up to $6 billion in longer-term debt – triple the usual amount. Less than a month ago, the Treasury said it would more than double the size of its $2 billion government debt repurchases.
Or consumes things that are made from or transported by petroleum/diesel, which is most things.
Ban all export of fuels from the US and prices will stabilize.
Again who would like to be POTUS right now, instead of Trump?
Very true, but unfortunately, too many people react to the “what have you done for me lately” mindset.
👍👍
Yay, looking forward to taking out a second mortgage or getting a third job to pay for heating oil this winter.
Probably will set the thermostat to 60 to keep it just warm enough that the pipes don’t freeze.
And miss me with the “at least you’re not getting nuked” comments. They have been “2 weeks away” from a bomb for 40 years.
I’m trying to plan for the reality of my heating costs and making ends meet vs. a hypothetical threat.
I voted for border security, no new wars, and affordability. .333 will win you the MLB batting title but not much else.
But I got a ballroom and a bunch of new names on a map, and Communists likely in control of Congress in 4 months so I’ve got that going for me...
Yet I have been paying $3.75 at the local Buc-ees. All the stations around it sell gas for 4.50.
Maybe we can get a Democrat again
Some seem to only want to discourage the base
I remember how bad Biden was on EVERYTHING
We won’t get a real fighter ever again
When you ask these TDS freaks who would they like to be POTUS instead of Trump they either don’t answer or say Trump is better than anyone else.
Why do peopl think we are getting out of this peacefully?
Yep
They think it’s bad just wait until the next Democrat
The Republic will be finished
Kamala Harris was the best the Democrats had
Imagine if Jezebel was in office now
THE LEFT WON’T STOP INTIL YHEY ARE STOPED
I really wish so-called conservatives would stop sounding the leftists sounded 10-20-30 years ago.
The Democrats will destroy the rest of our Freedoms
I guess 12 years of Obama wasn’t enough including that Biden bot
Then they wanted 4 years of Christ-Denying Kamala Harris
Good gosh
🔝🔝🔝
Who wants peacefully?
If you don’t think that the globalists are trying to destroy America, you are crazy.
THE HELL THEY WILL
They WILL try
The Tyrant Leftist Judges will support them
The whiners are helping to make it happen
We can’t refine a lot of the lighter crudes. Our refineries are set up for mostly heavier crudes.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.