Dow climbs as oil, inflation concerns keep Wall Street on edge

2:35pm: Market movers

• Palo Alto Networks Inc (NYSE:PANW, XETRA:5AP) shares fell 10% despite the cybersecurity company beating expectations on key fourth-quarter metrics and providing fiscal 2027 guidance above Street estimates, with next-generation security ARR rising 63% year over year to $9.1 billion.

• Dell Technologies Inc (NASDAQ:DELL) shares jumped more than 10% after the company reported fiscal second-quarter revenue of $47 billion, up 58% year over year, and raised its full-year revenue forecast to $192 billion on surging AI server demand.

• Ollie’s Bargain Outlet (NASDAQ:OLLI) shares gained 7.5% after the discount retailer posted second-quarter adjusted EPS of $1.42, well above the $1.14 analyst estimate and up 43% from a year earlier, despite weaker-than-expected revenue.

• FuelCell Energy (NASDAQ:FCEL) reported a wider third-quarter loss as inventory and purchase-commitment charges tied to a new data center power agreement pushed costs higher, while revenue fell 29% year over year to $33 million and missed estimates.

• GitLab shares surged more than 14% after the DevSecOps platform provider beat second-quarter revenue and profit estimates, with revenue rising 21% year over year to $286.3 million as AI-driven demand strengthened.

• MongoDB Inc (NASDAQ:MDB) reported better-than-expected second-quarter fiscal 2027 results, with revenue rising 30% year over year to $771.8 million as the database software company continued expanding its cloud business.

1:10pm: Storm appears to be calming

After a day of growing worries about September, the storm appears to be calming, with markets finding some relief as expectations for monetary easing return to focus.

Chris Beauchamp, chief market analyst at IG, says Tuesday’s market losses are being reversed as investors take comfort from dovish Fed comments and a weaker-than-expected ADP jobs report.

“The question must be asked, how much of yesterday’s angst was just a combination of ‘back to school’ for markets and the usual ‘first day of the month’ syndrome?” Beauchamp said.

“Bond market troubles don’t disappear overnight, but yesterday’s surge in yields was nothing compared to 2022, so perhaps everyone just got a little overexcited.”

11:20am: Uber cuts jobs

Uber Technologies Inc (NYSE:UBER, XETRA:UT8) (Uber Technologies Inc (NYSE:UBER, XETRA:UT8), Uber Technologies Inc (NYSE:UBER, XETRA:UT8)) is cutting about 3,300 jobs, or roughly 10% of its global workforce, as part of a restructuring aimed at reducing management layers and shifting spending toward its core ride-hailing, delivery and robotaxi businesses.

The restructuring will cut the number of managers by 20%, though some of those employees will shift into individual contributor roles rather than lose their jobs outright.

Uber is also reducing the number of two-person teams by half and eliminating positions more than seven layers removed from the CEO.

10:00am: Inflation fears return

Wall Street was mixed Wednesday morning as investors weighed escalating US-Iran tensions, elevated oil prices and fresh signs of weakness in the US labor market.

The Dow Jones Industrial Average rose 283 points, or 0.5%, to 53,050, while the S&P 500 added 14 points, or 0.2%, to 7,645. The Nasdaq was essentially flat at 26,109.

Bond yields remained elevated, with the 10-year Treasury yield holding at 4.79% and the 30-year yield at 5.27%, keeping pressure on markets as investors continue to worry about inflation and the path for interest rates.

The latest labor-market data offered little reassurance. ADP reported that private-sector employers added just 38,000 jobs in August, falling short of economists’ expectations for a 47,000 increase. The weaker-than-expected reading provides a somewhat bearish lead-in to Friday’s closely watched monthly jobs report.

Meanwhile, oil prices remained in focus after the US and Iran exchanged another round of strikes, extending the first direct conflict between the two nations in roughly a month. Brent crude slipped about 0.4% but remained above $94 a barrel, while WTI held just below $90.

As Swissquote senior analyst Ipek Ozkardeskaya put it, interventions can buy time, but they cannot change the underlying fundamentals. “The reality is that the war in the Middle East escalates, oil prices rise, inflation eats a part of weak growth numbers, and a global trade war is on its way of destroying decades of cooperation, that helped global economies grow together,” Ozkardeskaya said.

The combination of higher energy prices and softer employment data is making the market’s backdrop increasingly uncomfortable, particularly if a prolonged conflict pushes oil prices higher and feeds into inflation.

War weary and headed down

Wall Street can’t shake off the war jitters. Futures are pointing lower again, with the tech-heavy Nasdaq off 0.6%, the S&P down 0.2% and the Dow sitting on the gain line.

On the commodities market, Brent punched above $95 a barrel after the latest US strikes on Iran. Trump isn’t backing down either, warning he’ll hit Tehran “much harder” if Iran hits back.

Bond markets are feeling the heat too. The 10-year yield jumped to 4.79%, and the 30-year hit 5.27%, as inflation fears creep back into the conversation.

There’s a side plot brewing with Canada as well. Mark Carney wants Washington to “stop throwing shade” before trade talks resume, though Bessent insists there’s no war to speak of.

Today’s watch list: ADP jobs data lands as a warm-up act for Friday’s payrolls, while Broadcom, H-P and Snowflake report after the bell.