Major U.S. indices fell on Sept. 8 as crude oil prices surged toward six-week highs and trade tensions weighed on sentiment. Separately, bond investor Jeffrey Gundlach called for a bigger Fed rate hike ahead of the September meeting.
The Dow Jones Industrial Average fell 1.18% to 52,786, the S&P 500 lost 0.58% to 7,674, and the Nasdaq Composite dropped 0.31% to 26,424 as rising crude prices and trade tensions weighed on the market.
Oil surge fuels the selloff
Analysts attribute the pullback in equities to surging oil prices and ongoing geopolitical tensions, particularly in the Middle East, which are raising concerns over inflation and potential interest-rate adjustments. Brent crude hovered between $97 and $99 per barrel, while WTI crude ranged from $92 to $94, with both benchmarks reaching roughly six-week highs.
Individual movers stand out
Intel shares climbed 9.05% after the company said it plans to raise processor prices by up to 10% to improve its margins. Corning rose 7.56% after agreeing to supply 80 million miles of high-density optical fiber to Verizon for its network buildout. Conversely, Amgen slid 10.08% alongside Novartis, which fell 13.93% after reporting a Phase 3 trial setback for its pelacarsen injectable, a heart-disease treatment; analysts worry Amgen's similar drug, olpasiran, could face a similar fate. Qualcomm gained 3.17% after signing a deal giving Amazon the option to buy up to $60 billion in AI data center chips.
Separately, Gundlach calls for a bigger hike
Bond investor Jeffrey Gundlach has said the U.S. federal funds rate should rise by 50 basis points, pointing to U.S. yields that are expected to keep climbing. The effective federal funds rate stands at around 3.63%, with broader benchmark data placing it near 3.75%, while the 10-year Treasury yield hovers near multimonth highs of about 4.80% and the 30-year yield exceeds 5.25%. Market pricing currently shows a 55% probability of a rate hike at the Fed's September 15–16 meeting, rising to 64% for the October 27–28 meeting.
Sources: The Motley Fool, Crypto Briefing
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