Nasdaq, S&P 500 Slip as Oil Nears $100 and Fed Rate-Hike Bets Rise

Authored By HDFC SKY | Last Modified: Sep 8, 2026 08:25 PM IST

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Mumbai, Sept 8: US stocks opened a shortened trading week under pressure on Tuesday as renewed US-Iran tensions, rising crude oil prices and higher Federal Reserve rate-hike expectations weighed on Wall Street. The Dow Jones Industrial Average fell more sharply, while the Nasdaq Composite initially edged higher before turning lower. Investors also awaited the Producer Price Index (PPI) and Consumer Price Index (CPI) readings due later this week, which could influence expectations for the Federal Reserve’s next policy decision.

At 9:46 a.m. EDT, the Nasdaq Composite stood at 26,403.74, down 103.25 points or 0.39%, after opening at 26,528.57. The index touched an intraday high of 26,542.14 and a low of 26,383.65. The S&P 500 was at 7,688.54, down 30.06 points or 0.39%, while the Dow Jones Industrial Average was at 52,969.14, lower by 445.11 points or 0.83%. The Russell 2000 also declined, standing at 2,961.81, down 13.84 points or 0.47%.

The initial opening picture had been less negative. At the open, the Dow fell 303.8 points or 0.57% to 53,110.45, the S&P 500 slipped 0.01% to 7,717.81, while the Nasdaq Composite gained 0.08% to 26,528.571. The subsequent weakness came as oil prices continued to rise and markets assessed the implications of renewed conflict in the Middle East, elevated Treasury yields and changing expectations for Federal Reserve policy.

Dow Falls 0.83% as Oil Prices Reach Six-Week Highs

The Dow Jones Industrial Average registered the steepest decline among the major benchmarks in the latest early-session snapshot, falling 445.11 points or 0.83% to 52,969.14. The index had closed at 53,414.25 previously and opened at 53,110.45. Its session range stood between 52,865.04 and 53,110.45.

The decline came as crude oil prices moved higher for a third consecutive session following renewed military activity involving the US and Iran. Brent crude rose towards the $100-a-barrel level, while West Texas Intermediate crude moved towards $93-$95 a barrel across the early reports provided. Reuters reported Brent at $98.59 a barrel, up 1.64%, while another early report placed Brent at $98.66, up 1.73%. Brent had settled at $97.31 on Monday.

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The rise in energy prices has become a central issue for US equities because the market is simultaneously reassessing inflation and the Federal Reserve’s interest-rate outlook. The benchmark 10-year US Treasury yield rose to around 4.7882%-4.8043%, adding another pressure point for equities at the beginning of the shortened trading week.

Energy shares moved in the opposite direction to much of the broader market. Marathon Petroleum and Occidental Petroleum rose in premarket trading, while Chevron also gained as higher crude prices supported energy-related stocks.

S&P 500 Drops 0.39% as Inflation Data Looms

The S&P 500 declined 30.06 points or 0.39% to 7,688.54 in the latest market snapshot, compared with its previous close of 7,718.60. The index opened at 7,717.81, reached a high of 7,717.81 and slipped to a low of 7,685.83.

The broader benchmark had initially been almost flat at the open, falling just 0.01% to 7,717.81, before weakness increased during early trading. The index remained focused on the interaction between oil prices, inflation and interest rates, with the August PPI due on Thursday, September 10, followed by the August CPI on Friday, September 11.

The latest available figures cited in the references showed US consumer prices rising 3.4% year-on-year in July, while core CPI, which excludes food and energy, increased 2.5%. The upcoming inflation readings are therefore being watched against the backdrop of a sharp rise in energy prices and a stronger-than-expected employment report.

The S&P 500 remained close to its recent highs despite Tuesday’s early decline. Its 52-week range stood at 6,316.91 to 7,816.70, while its year-to-date gain was 12.32%. Over six months, the index was up 14.07%, and its one-year gain stood at 18.37%.

Nasdaq Turns Lower After Opening 0.08% Higher

The Nasdaq Composite initially outperformed the other major benchmarks, rising 0.08% to 26,528.571 immediately after the opening bell. The technology-heavy index subsequently turned lower, standing at 26,403.74, down 103.25 points or 0.39% at 9:46 a.m. EDT.

The Nasdaq opened at 26,528.57, compared with its previous close of 26,506.99. Its early trading range extended from 26,383.65 to 26,542.14, while reported volume stood at 1.244 billion, against an average volume of 9.014 billion.

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The index’s broader performance remained positive over longer periods despite Tuesday’s early decline. It was up 13.60% year-to-date, 17.94% over six months and 21.13% over one year. Its 52-week range stood between 20,690.25 and 27,190.21.

Technology and semiconductor stocks provided some support during the opening phase. Intel gained strongly, while Nvidia, Broadcom, AMD, ASML, Micron Technology and several semiconductor equipment companies also traded higher. The strength in chip stocks was linked in the supplied reports to continued optimism around artificial intelligence infrastructure and demand.

Intel Gains 6% While Amgen Falls Nearly 7%

Individual stocks showed a sharp divergence during early trading. Intel shares gained around 6%, reaching a rise of 5.22% in the S&P 500 heatmap and 4.95% in the Nasdaq 100 heatmap. The move followed a report that the chipmaker planned to raise prices.

Other semiconductor names also advanced. AMD rose 3.34%, Broadcom gained 2.11%, Oracle climbed 4.71%, Lam Research advanced 2.55%, Applied Materials gained 2.36%, while Qualcomm rose 3.11% in the S&P 500 heatmap. Qualcomm later gained more than 7% following an announcement of a partnership with Amazon Web Services to help build out artificial intelligence infrastructure.

Nvidia remained relatively resilient, rising 0.51% in the Reuters report, while the supplied Nasdaq heatmap showed the stock around flat. Microsoft fell 1.40%, Apple declined 0.91%, Alphabet’s Class A shares fell 1.16%, and Amazon slipped 0.68% in the S&P 500 heatmap.

Healthcare stocks were among the weaker performers. Amgen fell around 7%, with the supplied heatmaps showing a decline of 6.97%, while Novartis dropped 12.77% in the latest stock table. The decline in Novartis followed Phase 3 results showing that its del-desiran drug did not produce a significant improvement in patients with myotonic dystrophy type 1.

Novartis Drops 12.77% After Late-Stage Trial Setback

Novartis became one of the most notable decliners after reporting disappointing late-stage trial results for del-desiran, a drug being developed for a muscle-wasting disorder. Its shares fell 12.77% to $139.57 in the supplied early stock data, with the decline placing the stock on course for its weakest trading day on record.

The development followed two other setbacks cited in the reports. Novartis had recently said its pelacarsen drug failed to reduce the risk of cardiovascular events in a late-stage trial. A week earlier, the company had also announced that it paused eight clinical trials of an experimental cell therapy, rap-cel, following the deaths of three patients.

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Other healthcare names also declined. Dyne Therapeutics fell 22.57%, Beam Therapeutics dropped 15.00%, Sarepta Therapeutics declined 11.91%, and BioCryst Pharmaceuticals fell 7.38%. Royalty Pharma declined 6.11%, while Vertex fell 6.57%.

The weakness extended beyond healthcare. Shopify declined 6.11%, Baidu fell 7.88%, UiPath declined 8.81%, and Cheniere Energy fell 5.10% in the supplied stock data.

Russell 2000 Falls 0.47% As Smaller Stocks Retreat

The Russell 2000 declined 13.84 points or 0.47% to 2,961.81 at 9:32 a.m. EDT. The index had closed at 2,975.65 and opened at 2,969.59, before touching a low of 2,961.84.

The small-cap benchmark remained higher over longer periods, with a 19.34% year-to-date gain, a 17.29% six-month increase and a 23.67% one-year rise. Its 52-week range stood between 2,303.46 and 3,069.71.

Within the Russell 2000, several technology and energy-linked stocks recorded sizeable gains. IonQ rose 9.85%, D-Wave Quantum gained 8.85%, Bloom Energy increased 8.34%, and NuScale Power advanced 7.78%. CoreWeave gained 7.58%, while IREN rose 6.65%.

The index also included substantial individual declines. Dyne Therapeutics fell 22.57%, while Beam Therapeutics dropped 15.00% and Novartis declined 12.77%. Standard Nuclear fell 8.16%, while several software and technology stocks declined by more than 5%.

Oil, Bond Yields and Fed Rate Expectations Pressure US Equities

Renewed tensions in the Middle East emerged as a major source of pressure for Wall Street, with crude oil prices moving sharply higher as concerns over regional energy supplies intensified. The US and Iran exchanged strikes over the weekend, while Yemen’s Iran-backed Houthis attacked energy facilities and cities in Saudi Arabia. Saudi Arabia said operations at some energy facilities had been halted following the attacks, while shipping traffic through the Strait of Hormuz also slowed. These developments raised concerns about a broader disruption to oil supplies.

Reuters reported that the US military struck three Iranian oil tankers after Iran launched ballistic missiles towards two US Navy warships. Iran later said it had targeted three other oil tankers and attacked several US-linked ships. Against this backdrop, Brent crude rose towards $100 a barrel, reaching around $98.59-$98.66, while WTI crude moved towards $92.56-$94.54. Although Iran said it was close to an agreement with Oman to manage traffic through the Strait of Hormuz, uncertainty around the strategic shipping route continued to support crude prices.

Higher oil prices also added to inflation concerns, putting pressure on US Treasury yields. The 10-year Treasury yield climbed to around 4.79%-4.80%, with reports noting levels near their highest since November 2023. Rising yields further weighed on equities as markets reassessed the Federal Reserve’s interest-rate outlook.

Rate expectations shifted following stronger-than-expected US employment data. The economy added 162,000 jobs in August, while CME FedWatch indicated around a 60.6% probability of a rate hike at the September 15-16 Federal Reserve meeting, up from roughly 50% previously.

Markets are now focused on upcoming PPI and CPI inflation data, which could provide further clues about the Fed’s policy direction. Together, elevated oil prices, higher Treasury yields and changing rate expectations are creating a challenging backdrop for US equities.

329-Day S&P 500 Trend Meets Fresh Inflation Pressure

Despite Tuesday’s decline, the S&P 500 remains within a long-running upward trend. Yahoo Finance reported that the index’s 200-day moving average had risen for 329 consecutive trading sessions, representing the fourth-strongest such streak over the past 10 years, according to strategists at The Kobeissi Letter.

The current run follows an earlier 460-session stretch that ended in April 2025 following the market sell-off associated with President Donald Trump’s “Liberation Day” tariffs. Combined, the two periods amount to roughly 800 sessions. The longest such run lasted 1,448 days during the 2000 dot-com bubble.

The current market backdrop is nevertheless being shaped by oil prices, inflation data and interest-rate expectations. The supplied reports said that markets would remain focused on whether higher energy prices begin to feed into broader inflationary pressures.

AI and Semiconductor Stocks Hold Up Against Broader Weakness

Technology and semiconductor stocks showed relative strength during the early session as artificial intelligence-related demand remained a key theme. The Nasdaq 100 futures had gained 0.2% in premarket trading, while the iShares Semiconductor ETF was up 1.7%.

Nvidia rose 0.7% in one premarket report, while Broadcom gained 1.1% and Intel jumped 4.7%. In the later market snapshot, Intel remained one of the strongest large-cap technology performers, while AMD, Broadcom, ASML, Lam Research and Applied Materials also traded higher.

Bloom Energy was another notable mover, gaining more than 6% after being selected for inclusion in the S&P 500 from September 21 as part of a quarterly index rebalancing. Its shares had risen around 190% this year, according to the supplied report, with the company described as a beneficiary of the build-out of AI data centres.

SanDisk, Dell Technologies and Palo Alto Networks were also in focus after being added to the S&P 100. SanDisk gained 3.6% in overnight trading late Monday, while Dell and Palo Alto Networks rose less than 1%. Arista Networks was also among the additions, replacing Nike, Colgate-Palmolive, Molson Coors Beverage and Simon Property Group, effective September 21.

Qualcomm Gains 7% After Amazon AI Infrastructure Deal

Qualcomm shares rose more than 7% after the company announced a partnership with Amazon Web Services to help build out AI infrastructure. The companies said the collaboration would address growing demand for computing, storage, networking, memory bandwidth and energy-efficient infrastructure.

The announcement provided another early-session catalyst for semiconductor stocks at a time when the sector was showing strength despite weakness across broader US equity benchmarks.

The semiconductor group also included several notable gainers in the supplied market data. Intel gained around 6%, AMD rose more than 3%, ASML increased 2.63%, Broadcom advanced around 2%, while Lam Research and Applied Materials rose by more than 2%.

$1.47 Billion Wistron Fundraise Pressures Nvidia Supplier

Taiwan-based Wistron, an Nvidia supplier, declined more than 5% after pricing a $1.47 billion global depositary receipt offering to fund raw material purchases. The company said it had priced 25 million global depositary receipts at $58.88 each, representing 250 million new common shares.

The shares were priced at around NT$186.24 each, approximately a 5.5% discount to Wistron’s Monday closing price of NT$197. The new shares represented about 7.29% of Wistron’s outstanding shares before the issuance.

The offering was expected to be issued on Thursday, with proceeds earmarked for purchases of raw materials in foreign currencies. Wistron has been expanding its AI server business and approved additional capacity investments in Taiwan and the US during the previous month.

Bitcoin Slips Below $80,000 As Crypto Stocks Decline

Cryptocurrency-linked equities also weakened during early trading as Bitcoin moved below the $80,000 level. Coinbase declined 1.57%, while Strategy fell 2.92% in the Reuters market update.

The supplied Nasdaq and broader market data also showed weakness across several technology and digital-asset-linked names. The decline came alongside higher Treasury yields and broader pressure on risk-sensitive areas of the market.

The move in Bitcoin contrasted with strength in several semiconductor and AI-linked stocks, highlighting the uneven performance across technology-related segments during the opening session.

Canada Tariffs Add Another Trade Risk to Wall Street

US markets also opened against the backdrop of renewed trade tensions between the US and Canada. Canada imposed retaliatory tariffs of up to 50% on selected US goods on Tuesday after trade discussions between the two countries failed to resolve the dispute.

The measures affect approximately $20 billion of US imports, including dairy products, wood products, toilet paper and metal items. Tariffs on many steel products increased to 50% from 25% previously.

The dispute adds another source of uncertainty during a week already dominated by oil prices, Middle East tensions and inflation data. President Donald Trump had also said that Canadian aircraft manufacturer Bombardier could not sell in the US unless Canada began producing its products in the US.

Oracle and GameStop Earnings Add to This Week’s Events

Corporate earnings are another focus during the shortened trading week. Oracle is scheduled to report results on Thursday, while GameStop is due to report on Tuesday.

Oracle shares rose nearly 5% in early trading ahead of its earnings report. Adobe, another software company scheduled to report after Thursday’s close, declined in early trading after falling 6.7% on Friday.

The earnings calendar comes as markets also prepare for inflation data and the Federal Reserve’s September policy meeting, placing corporate results alongside macroeconomic releases during a compressed trading week.

Energy Gains Contrast with Technology and Healthcare Losses

The opening session showed a clear divergence between sectors. Energy companies benefited from rising crude prices, with Marathon Petroleum and Occidental Petroleum higher in premarket trading and Chevron also gaining.

Semiconductor stocks were comparatively firm, with Intel, AMD, Broadcom, Qualcomm, ASML, Lam Research and Applied Materials among the notable gainers. AI infrastructure remained a supporting theme for several technology companies.

By contrast, healthcare and several software stocks registered substantial declines. Novartis fell 12.77%, Amgen declined around 7%, while Shopify, Adobe, ServiceNow, Zscaler, Guidewire Software and other technology-related names also traded lower.

The uneven performance occurred as the major benchmarks remained under pressure from rising oil prices and elevated Treasury yields.

Wall Street opened Tuesday with the Dow down 0.83%, the S&P 500 down 0.39%, the Nasdaq Composite down 0.39% and the Russell 2000 down 0.47% in the latest early-session data. Crude oil remained near $100, Treasury yields stayed around 4.80%, and the PPI and CPI remained the key scheduled US economic releases later this week.

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