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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.
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There is still fear in the crude oil market.
No, it’s Soros, and his globalists manipulating the market. Er are headed for civil war.
So, am I to understand that Biden’s higher oil prices did NOT “threaten the U.S. economy?
Do these journalistic idiots think that I’m as stupid as an AWFUL? Or a DemocRAT congresscritter?
High oil prices help the US economy.
They were at those levels during Biden and PMSNBC was fine with it.
because Iran knows higher gas prices means bad news for Trump..Iran wants the Dems to take power, for them it would be win/win. Notice Dems dont say how they would bring down gas prices, there is only two ways, either destroy the Iranian regime or surrender to them, allowing them to control the Strait forever, let them have a nuke, etc etc
It was higher during Biden and the commie media never discussed it
Tip O’Neill was right.
All politics is local.
The average voter cares much more about the price of gas than he does about defanging Iran. That viewpoint might be shortsighted, and actually dangerous.
Nevertheless, Trump and the GOP ignores it at their own risk.
Tell that to the average Joe when he fills his gas tank.
You can understand whatever you want.
The Russian invasion jolted oil prices briefly to $120. A year later, they were in the $60s.
CNCBC, the Wall Street Journal, Barron’s, and Investor’s Business Daily ALL reported the threat to the US economy.
I know what TDS looks like.
Short term pain
Long term pain
See my post #11. OF COURSE it was widely reported.
And of course it didn’t help the Democrats’ prospects.
Acknowledging the price of WTI = TDS.
We are totally headed for civil war. That has been locked in for a long time.
Interest rates are the big issue, not oil. Oil prices will come down, but interest rates may not.
All these things are involved. But the main issue is that freedom and leftism can’t exist in the same space.
I checked a few financial sites early today. Some of them are predicting that the Fed will raise rates before the end of the year. Others are predicting a slight drop in rates.
I sure missed the boat. I majored in chemistry. I should have majored in economics. Make a wrong chemistry prediction, and a flask might blow up.
But make a wrong economics prediction, and eh, who cares?
(Just kidding, kind of.)
Yup...I have over $5/gal in my little book.
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