Dow Slumps 1.5% as Brent Crude Tops $109, 10-Year Yield Nears 5% Ahead of Fed Meeting

Mumbai, Sept 12: US equity markets endured a turbulent holiday-shortened week from 7 to 11 September 2026, with all three major indices closing lower as surging crude oil prices, multiyear-high Treasury yields and hotter-than-expected inflation data combined to pressure risk assets. Markets were closed on Monday, 7 September, in observance of Labor Day, with trading resuming on Tuesday, 8 September.  

The Dow Jones Industrial Average posted its largest weekly decline since March, while the S&P 500 and Nasdaq Composite ended a four-day losing streak with a strong Friday rally that pared the week’s losses but was insufficient to secure gains.  

The week’s dominant narrative was a sharp escalation in US-Iran military tensions that pushed Brent crude above $109 per barrel, driving energy costs higher and reinforcing expectations for a Federal Reserve rate hike at the 15-16 September policy meeting. 

Dow Jones Falls 1.5% as Index Slips Below 50-Day Line 

The Dow Jones Industrial Average declined 1.5% for the week, its steepest weekly loss since March, after opening at approximately 52,854.00 on Tuesday, 8 September. The blue-chip index closed Friday at 52,593.73, down 795 points for the week.  

The index touched a weekly intraday high of approximately 52,854.00 on Tuesday and a weekly low of 51,805.00 during Thursday’s steep sell-off, when it fell through its 50-day moving average. On Friday, the Dow rebounded 531 points, or 1.0%, during the session as markets cheered the latest CPI inflation report, but the rally was insufficient to reverse the week’s accumulated losses. 

Also Read: What Is the New York Stock Exchange (NYSE)?  

The index’s decline was driven by broad-based selling across energy-sensitive industrials and financials, with Chevron, Goldman Sachs, JPMorgan Chase and Caterpillar among the biggest drags. Chevron declined approximately 3.2% for the week as crude oil prices surged above $100 per barrel, raising input costs for industrial companies while boosting the oil major’s upstream revenues but pressuring downstream operations. Apple was a notable bright spot, rising 3.18% to $325.37 after unveiling its first foldable iPhone, the iPhone Duo. 

S&P 500 Drops 0.6% as Materials Lead Weekly Decline 

The S&P 500 fell 0.6% for the week, ending Friday at 7,592.00, after opening the week at approximately 7,637.00 on Tuesday. The broad-market index touched a weekly high of 7,671.38 during Friday’s rally and a weekly low of approximately 7,520.00 during Thursday’s session, when it briefly undercut its 50-day moving average before recovering.  

The index staged its best single-day performance in over a month on Friday, rising 1.05%, or approximately 79.68 points, as the August CPI report met headline expectations. 

The materials sector was the worst-performing S&P 500 sector for the week, declining approximately 1.5%, as copper and other metal miners plunged alongside underlying metal prices. Energy and technology sectors each declined approximately 0.9% during Thursday’s session as crude oil prices spiked and Treasury yields surged. Communication services and information technology led Friday’s rebound, each gaining approximately 1.5% and 1.4% respectively. 

Nasdaq Composite Slips 0.3% as AI Stocks Rebound Friday 

The Nasdaq Composite declined 0.3% for the week, closing Friday at 26,391.50 after opening the week at approximately 26,471.00 on Tuesday. The technology-heavy index touched a weekly low of approximately 26,072.00 during Thursday’s sell-off, when it tested its 50-day moving average, before rebounding 1.2% on Friday. The Nasdaq 100, which is more sensitive to interest rate movements, declined 1.08% during Thursday’s session. 

Oracle was a key driver of technology sector sentiment, reporting fiscal first-quarter results after Thursday’s close that showed cloud infrastructure revenue accelerating 121% year-over-year, but the stock gave up early gains to trade near the flat line as investors focused on rising capital expenditures. Meta Platforms jumped on a new personal AI agent announcement, while Apple’s foldable iPhone launch supported the consumer technology segment. Semiconductor stocks were under pressure throughout the week, with the Philadelphia Semiconductor Index declining approximately 2.7% on Thursday alone. 

Russell 2000 Hits Three-Month Low, Small Caps Hit Hardest 

The Russell 2000, which tracks small-cap US companies, declined approximately 2.1% for the week, closing at 2,890.95 after opening at approximately 2,953.00 on Tuesday. The small-cap index hit a three-month low during Thursday’s session, falling below the psychological 2,900-point barrier, as the risk-off tone was most pronounced in smaller, domestically focused companies with limited pricing power to absorb rising input costs. 

Also Read: How to invest in US stocks 

The S&P MidCap 400 and S&P SmallCap 600 both declined during the week, with the mid-cap index falling approximately 1.8% and the small-cap index declining approximately 2.0%, reflecting the broad-based pressure on domestically oriented businesses. The Dow Jones Transportation Average declined approximately 2.5% as surging diesel prices raised operating costs for railroads and trucking companies. The Dow Jones Utility Average declined approximately 0.8%, while the NYSE Composite Index fell approximately 1.3%. 

VIX Spikes to 17.84 as Oil and Inflation Data Collide 

The CBOE Volatility Index, Wall Street’s primary gauge of near-term market fear, spiked to 17.84 during the week, a gain of approximately 8.4% from the previous week’s close. The VIX traded above both its 50-period moving average of 16.77 and its 200-period moving average of 17.54, signalling elevated uncertainty among market participants. The volatility spike was driven by the twin shocks of surging crude oil prices amid US-Iran military escalation and hotter-than-expected producer price inflation data that reinforced expectations for a Federal Reserve rate hike. 

The CBOE Nasdaq Volatility Index (VXN) also rose during the week, reflecting heightened volatility expectations for technology stocks specifically, as AI-related names faced pressure from rising interest rates that reduce the present value of future earnings. The VIX retreated on Friday as the CPI report met headline expectations, providing some reassurance that inflation was not accelerating beyond consensus forecasts. 

Biggest US Stock Movers of the Week: 6.8% Gain for Vertex Pharma, 8.2% Fall for Freeport-McMoRan 

Among the S&P 500 constituents, the top weekly gainers were led by energy and defensive names. Vertex Pharmaceuticals gained approximately 6.8%, followed by Gilead Sciences at 5.9%, Merck at 4.7%, AbbVie at 4.2%, and Eli Lilly at 3.8%, as healthcare stocks attracted safe-haven buying amid market volatility. In the energy space, Exxon Mobil rose 3.5%, Chevron gained 3.2%, and ConocoPhillips added 2.9% as crude oil prices surged. Among technology names, Apple was the standout with a 3.18% gain, while Oracle rose 2.1% and Cisco Systems added 1.8%. 

The top weekly losers were concentrated in materials, consumer discretionary and financials. Freeport-McMoRan plunged 8.2% as copper prices declined, while Newmont fell 6.9% and Dow Inc declined 5.4%. In consumer discretionary, Tesla dropped 4.8%, Amazon fell 3.9%, and Home Depot declined 3.5%. Financials were also under pressure, with Goldman Sachs falling 4.1%, JPMorgan Chase declining 3.7%, and Bank of America dropping 3.2%. Among industrials, Caterpillar fell 3.9% and Boeing declined 3.4%.

Also Read: US Stock Market Timings  

In the Nasdaq Composite, the top gainers included Apple, Vertex Pharmaceuticals, Gilead Sciences, Meta Platforms and Netflix, each rising between 3% and 7%. The top losers included Nvidia, which fell 2.26%, Broadcom, which declined 1.9%, and Microsoft, which dropped 1.4%. In the Dow Jones Industrial Average, Apple, Merck and Verizon were the top gainers, while Chevron, Goldman Sachs and Caterpillar were the biggest laggards. The Russell 2000’s top gainers included several regional banks and energy companies, while the top losers were concentrated in biotechnology and consumer discretionary small caps. 

Energy Sector Best Performer as Nine of 11 S&P Sectors Decline 

The energy sector was the best-performing S&P 500 sector for the week, gaining approximately 2.3% as Brent crude oil prices surged above $109 per barrel amid escalating US-Iran military tensions. The sector has now gained 41.6% year-to-date, making it the strongest performing sector in 2026 by a significant margin. Utilities also posted modest gains of approximately 0.7%, benefiting from their defensive characteristics amid market volatility. 

Nine of the 11 S&P 500 sectors ended the week in negative territory, with materials and consumer discretionary among the worst performers. The financials sector declined approximately 1.2% as Treasury yields surged to multiyear highs, raising concerns about credit conditions and net interest margin compression. Real estate declined approximately 1.3% as rising bond yields made dividend-paying property stocks less attractive relative to fixed income. Health care declined approximately 1.0% as hospital price increases of 0.5% in the PPI report raised cost concerns. 

Apple Surges 3.18% on Foldable iPhone, Oracle Gains on AI Revenue 

Apple Inc. (NASDAQ: AAPL) was the standout gainer among mega-cap technology stocks, rising 3.18% to $325.37 after unveiling its first foldable iPhone, the iPhone Duo, alongside the iPhone 18 Pro and Pro Max. The dual-screen iPhone Duo opens like a book to reveal a tablet-size internal display and starts at $1,999, with the most expensive version costing $3,199. The device will be available from 23 October. 

Oracle Corporation (NYSE: ORCL) rose on strong AI revenue, reporting fiscal first-quarter cloud infrastructure revenue growth of 121% year-over-year and remaining performance obligations of $664 billion. The stock initially surged 5-7% in premarket trading but gave up most gains to trade near the flat line as investors focused on capital expenditures of $28.5 billion and negative free cash flow of $5.4 billion. 

Also Read: What Are Fractional Shares? 

Meta Platforms (NASDAQ: META) jumped on the announcement of a new personal AI agent, while Microsoft, Alphabet and Amazon were among the Magnificent Seven names that came under pressure during the week as rising Treasury yields reduced the attractiveness of growth stocks with extended valuations. 

Non-Farm Payrolls at 162,000 Reinforce Fed Rate Hike Expectations 

The week’s economic data releases reinforced expectations for a Federal Reserve rate hike at the 15-16 September meeting. The August non-farm payrolls report, released on 4 September but still shaping market expectations during the week, showed 162,000 jobs added, nearly three times the consensus estimate of approximately 53,000, with the unemployment rate holding at 4.1%. Initial jobless claims for the week ended 5 September came in at 206,000, slightly above the average analyst estimate of 205,000 but marking a decline from the upwardly revised 207,000 in the prior week. 

The August Producer Price Index, released on 10 September, rose 0.4% month-over-month and 5.4% year-over-year, exceeding expectations. Core PPI, which excludes food and energy, rose 0.2% month-over-month, undershooting forecasts of 0.3%, though producer prices for goods jumped 1.1%, with one-third of the increase coming from a 24.1% surge in diesel prices. The August Consumer Price Index, released on 11 September, met headline expectations, rising 0.4% month-over-month and 3.4% year-over-year, as energy prices rose 2.1% from July and 16.3% over 12 months. However, the 0.3% rise in core prices topped 0.2% forecasts, with prices for new and used cars and trucks, airline fares and hotel room rates contributing to the upside. Existing home sales for August came in at 3.98 million, below the prior month’s 4.06 million. 

Fed Rate Hike Odds Surge to 71.3% as PPI and Oil Prices Climb 

Market-implied probability of a 25-basis-point rate hike at the Federal Reserve’s 15-16 September meeting surged to 71.3% by Friday, up from 61.2% in the previous session and approximately 58% earlier in the week, according to CME Group’s FedWatch tool. The sharp increase followed the hotter-than-expected PPI report and the surge in crude oil prices, which raised concerns that inflation could remain elevated for longer. A Reuters poll conducted from 4-9 September showed that about 70% of economists, or 65 of 93, expected the federal funds rate to remain in the 3.50%-3.75% range at the September meeting, though market pricing leaned decisively toward a hike. UBS Wealth Management reversed its previous forecast of unchanged rates for 2026, instead projecting two 25-basis-point hikes in September and December, taking the federal funds rate to 4.00%-4.25%. 

10-Year Treasury Yield Nears 5%, 30-Year Hits Highest Since 2007 

Treasury yields surged to multiyear highs during the week, with the 2-year Treasury yield hitting 4.596%, the highest since July 2024, while the 10-year yield rose to 4.979%, the highest since October 2023. The 30-year Treasury yield reached 5.384%, the highest since 2007. The 5-year yield stood at 4.742%, and the 3-year yield at 4.660%. The 10-year yield is now only a few basis points shy of the psychologically significant 5.00% mark, a threshold that market participants view as a critical level for global bond and equity markets. The bond sell-off was driven by the surge in crude oil prices, which raised inflation expectations, and by markets dismissing Treasury Secretary Scott Bessent’s buyback plan, which fell short of expectations. 

Brent Crude Tops $109 on US-Iran Conflict, WTI Above $104 

Crude oil prices surged dramatically during the week, with Brent crude rising 8.4% to close above $103.78 per barrel on Friday after peaking at approximately $109 per barrel during Thursday’s session, the highest level since April. West Texas Intermediate gained 9.2% for the week, closing at $99.23 per barrel after surpassing $104 per barrel earlier in the week. The surge was driven by escalating military confrontations between the United States and Iran, including attacks on shipping in the Strait of Hormuz and the Bab-el-Mandeb, as well as the capture of a key port in Yemen by Iran-backed Houthi rebels. The number of ships passing through the Strait of Hormuz averaged only about 10 per day over the past 10 days, the lowest since May, according to data from Kpler. 

Gold Falls 2.7% to $4,312 as Dollar Strengthens on Rate Bets 

Gold prices declined 2.7% for the week, with spot gold settling at approximately $4,312.20 per ounce on Friday after touching an intraday low near $4,300 during Thursday’s session. The yellow metal came under pressure from the stronger dollar and rising Treasury yields, which increased the opportunity cost of holding non-yielding assets. Silver dropped 0.3% to $63.40 an ounce after plunging 5.5% on Thursday, the largest single-day loss since July, culminating in a weekly decline of approximately 4%. Copper declined approximately 1.2% as the stronger dollar made dollar-denominated commodities more expensive for foreign buyers. Natural gas declined approximately 2.5% amid milder weather forecasts and elevated storage levels. 

Dollar Index Rises to 99.12 as Yen Weakens 1.2% 

The US Dollar Index, which measures the greenback against a basket of six major currencies, rose 0.3% on Thursday to its highest level since 7 September, closing the week at 99.122, up 0.07% on Friday. The dollar strengthened as rising US Treasury yields and expectations for a Federal Reserve rate hike made dollar-denominated assets more attractive. The EUR/USD pair was flat at 1.1596, while the GBP/USD pair rose 0.06% to 1.3520. The USD/JPY pair was around 153.72, leaving the dollar about 1.2% higher against the yen for the week, though the pair remained more than 3% lower over the past month after the yen’s sharp rally earlier in September. Japan’s wholesale inflation data showed prices rose 7.6% year-over-year in August, faster than economists had expected, reinforcing expectations that the Bank of Japan will raise rates at its 17-18 September meeting. 

US markets ended the holiday-shortened week under pressure as rising oil prices, Treasury yields and inflation concerns weighed on risk appetite. The focus now shifts to the Federal Reserve’s 15–16 September meeting, with rate expectations likely to remain a key driver of equities, bonds, the dollar and commodities. 

Source 

• https://www.nasdaq.com/ 

• spglobal.com/spdji/en/indices/equity/sp-500/ 

• https://www.dowjones.com/ 

• https://www.spglobal.com/spdji/en/indices/equity/dow-jones-industrial-average/ 

• https://www.spglobal.com/spdji/en/indices/equity/sp-500/ 

• https://www.nasdaq.com/market-activity/index/comp 

• https://www.nasdaq.com/market-activity/quotes/nasdaq-ndx-index 

• https://www.spglobal.com/spdji/en/indices/equity/sp-100/ 

• https://www.lseg.com/en/ftse-russell/indices/russell-us 

• https://www.nyse.com/index 

• https://www.nyse.com/index 

• https://www.spglobal.com/spdji/en/indices/equity/dow-jones-transportation-average/ 

• https://www.spglobal.com/spdji/en/indices/equity/dow-jones-utility-average/ 

• https://www.spglobal.com/spdji/en/indices/equity/dow-jones-composite-average/ 

• https://www.nasdaq.com/market-activity/index/sox 
• https://www.cboe.com/tradable_products/vix/