US stocks sank on Thursday morning as oil prices and Treasury yields continued to climb and investors assessed fresh wholesale inflation data.
The Dow Jones Industrial Average (^DJI) fell 0.3%, while the S&P 500 (^GSPC) fell 0.5%. The tech-heavy Nasdaq Composite (^IXIC) dropped 0.8%, with all three indexes deepening losses from the past three days.
Stocks have cooled this week as oil prices topped $100 per barrel after Iran targeted US Navy warships in the latest escalation in the Middle East conflict. The move higher in oil has helped support rising Treasury yields. The 10-year yield (^TNX) hit a three-year high on Wednesday after the Treasury Department announced it would buy up to $6 billion in longer-term debt.
President Trump said Wednesday that oil prices may not come down until after the midterm elections two months away. The ongoing US-Iran war and disruptions in the Strait of Hormuz have raised concerns that an energy shock could flow into broader inflation and all but force the Federal Reserve to raise interest rates.
On Thursday, wholesale inflation data showed producer prices rose on a monthly and yearly basis, largely in line with expectations, setting the stage for the government’s consumer inflation report, due out Friday. The Producer Price Index rose 5.4% year-on-year, and 4.6% on a core basis.
Investors are also considering a proposal Trump floated in Dallas on Wednesday to send every American adult a $5,000 check if the Republicans keep control of Congress in the midterm elections. It’s not clear how Trump would implement such a costly measure, as Congress would need to approve it.
After the bell, Oracle (ORCL) is expected to report earnings, offering a reality check on AI capital expenditures and demand.
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10-year Treasury at highest level since 2023 as oil prices jump to $105
Long-dated bonds stayed elevated on Thursday as oil prices jumped.
The 10-year Treasury yield (^TNX) rose to 4.91%, hitting its highest level since 2023. Meanwhile, the 30-year Treasury (^TYX) yield climbed to 5.35%.
Stocks fall as oil prices hit highest level since May
The major indexes opened on track for their fourth straight day of losses as oil prices and bond yields continued to pose a headwind for stocks.
The Dow Jones Industrial Average (^DJI) fell 0.3%, and the S&P 500 (^GSPC) dropped 0.5%. The tech-heavy Nasdaq Composite (^IXIC) sank a deeper 0.9%.
Here’s a look at the sector action in the first few minutes of trading:
The bond market continued to exert pressure on equities. The 10-year yield (^TNX) jumped 8 basis points to 4.91%, its highest level since 2023.
Oil prices surged as well, with both Brent crude (BZ=F) and WTI crude (CL=F) above $100 per barrel and at their highest levels since May.
Producer prices rose largely in line with expectations in August, while last week’s initial jobless claims came in a bit above estimates.
Weekly jobless claims come in higher than expected
Weekly initial jobless claims release came in at 206,000 on Thursday, versus 205,000 expected by economists.
The reading came in lower than the prior week’s claims, which were revised up to 207,000 from 206,000, according to government data.
Continuing claims came in at 1.77 million versus 1.78 million expected, which represents a downtick from the downwardly revised 1.775 million in the prior week.
The labor market has shown resilience in recent months, with the economy adding 162,000 jobs in August.
Wholesale prices advanced in line with expectations in August, per BLS data
Producer prices advanced by 0.4% in August over the previous month, in line with economists’ expectations. The measure comes in above July’s revised price increase of 0.1%.
The “core” reading — which excludes the more volatile food and energy costs — showed producer prices advanced by 0.2% over the previous month. That was slightly below the 0.3% growth economists had predicted and July’s revised gain of 0.3%.
On a year-over-year basis, headline prices rose by 5.4% in August, slightly above estimates of 5.3% and advancing over the previous month’s revised 4.8% print. Core inflation came in at 4.6%, in line with estimates but above July’s gain of 4.2%.
The data today comes ahead of the monthly consumer price inflation report due Friday, set to be the more closely watched dataset as market-watchers look for clues as to the direction of the Federal Reserve.
Macy’s turnaround shows promise as earnings beat estimates, outlook improves
Macy’s (M) turnaround efforts continued to gain momentum in the second quarter, giving the department store chain leeway to raise its cautious guidance again.
In the second quarter, Macy’s same-store sales rose 2.7%, marking the fifth straight quarter of growth and widely surpassing Wall Street’s expectations for 0.8% comparable sales growth, according to S&P Global Market Intelligence data.
Macy’s luxury store, Bloomingdale’s, shone yet again with 11.3% sales growth in the quarter, while beauty chain Bluemercury’s sales grew 6.2%. Macy’s flagship brand posted 1.1% sales growth, with newly revamped stores reporting a modestly stronger 1.9% growth.
The company is in the third year of its “Bold New Chapter” transformation strategy, pegged on closing 150 underperforming stores and reinvesting in the remaining 350 locations.
Macy’s earnings per share beat Wall Street’s estimates in Q2.
Gold steadies near $4,400 as traders weigh Fed path
Bloomberg reports:
Gold steadied, as traders awaited US inflation data due later this week for clues to whether the Federal Reserve will hike interest rates.
Bullion was near $4,400 an ounce, after adding 1% in the previous session to snap a three-day losing streak. The metal has traded in a narrow range in recent weeks, with some investors betting on its long-term value as a portfolio hedge despite near-term headwinds from rising bond yields and escalating tensions in the Middle East.
Yields on 10-year Treasuries rose – a negative for gold, which doesn’t pay interest – after a government plan to buy up to $6 billion of longer-rated debt failed to sway the market. The muted reaction on Wednesday came after benchmark Brent crude prices hit $100 a barrel for the first time since July, highlighting concerns around inflation.
Economic data: Initial jobless claims, week ended Sept. 5 (205,000 expected, 206,000 previously); Continuing claims, week ended Aug. 29 (1.78 million expected, 1.779 million previously); PPI final demand, month-on-month, August (+0.4% expected, +0% previously); PPI ex food and energy, month-on-month, August (+0.3% expected, +0.2% previously); PPI final demand, year-on-year, August (+5.2% expected, +4.7% previously); PPI ex food and energy, year-on-year, August (+4.6% expected, +4.2% previously); Existing home sales, month-on-month, August (-1.7% expected, -1.7% previously)
Trump floats paying every American $5,000 if GOP wins midterms
At the Republican midterm convention in Dallas on Wednesday, President Trump issued a huge midterm election promise, vowing to send every American a $5,000 check if the GOP retains control of Congress.
“If the Republicans win, you win with us, and you get $5,000,” Trump said, without offering details about how the payments would work.
The proposal would cost over $1 trillion. It would also require approval by Congress, which would be a tough sell.
President Donald Trump speaks on stage on the first day of the 2026 Republican National Convention at the American Airlines Center on Sept. 9, 2026, in Dallas, Texas. (Alex Wong/Getty Images) ·Alex Wong via Getty Images
The promise from the campaign trail comes as Trump’s approval ratings have dropped as Americans grow dismayed by rising oil prices from the Iran war and the US’s trade spat with Canada.
According to the AP, Vice President JD Vance appeared to walk back the proposal after Trump’s speech, suggesting that the payments would not go to wealthy Americans and would be paid for by tariff revenues. Though the price tag of the “Trump dividend” would exceed what the US government is currently bringing in from its trade policies.
