[BRIEFING.COM] The major averages extended their losing streak to three sessions on Thursday as another surge in crude oil, rising Treasury yields, and heightened expectations for a rate hike continued to weigh on equities. The S&P 500 (-0.6%), Nasdaq Composite (-0.7%), and DJIA (-0.6%) finished with similar losses, while the Russell 2000 (-1.0%) and S&P Mid Cap 400 (-0.9%) underperformed.

Oil prices remained at the center of the market's concerns and continued climbing throughout the afternoon as an off-ramp to the U.S.-Iran conflict remained elusive. WTI crude settled $6.32 higher (+6.6%) at $102.30 per barrel, bringing its gain for the holiday-abbreviated week to roughly 11.5%. The latest advance compounded the oil-driven pressure that has weighed on equities throughout the week. Treasury yields presented another obstacle, with the 10-year note yield climbing 11 basis points to 4.94%.

Expectations for tighter monetary policy also increased following this morning's August Producer Price Index. Headline PPI rose 0.4% month-over-month, matching the Briefing.com consensus, while core PPI increased a slightly cooler-than-expected 0.2% (Briefing.com consensus: 0.3%). However, upward revisions to the July readings and an acceleration in year-over-year producer inflation reinforced expectations for a possible rate hike at next week's FOMC meeting. The CME FedWatch Tool assigned a 73.1% probability to a rate hike following the report, up from 61.2% yesterday.

The pressure remained widespread through the close, with nine of the 11 S&P 500 sectors finishing lower. The materials sector (-1.5%) ended at the bottom of the standings amid declining precious metal prices with particular weakness in copper.

Meanwhile weakness in the information technology sector (-0.9%) had an outsized influence on the major averages. Semiconductor stocks were a particular source of weakness after providing relative support during the first two sessions of the week. The PHLX Semiconductor Index dropped 2.7%, with NVIDIA (NVDA 218.40, -5.27, -2.36%) among the notable mega-cap laggards. Taiwan Semiconductor Manufacturing (TSM 428.31, -7.05, -1.62%) also declined despite reporting a 53.3% year-over-year increase in August revenue to NT$514.81 billion, as the stock gave back some ground following its strong recent run.

Skyworks (SWKS 84.03, +7.49, +9.79%) and Qorvo (QRVO 112.36, +7.12, +6.77%) bucked the broader semiconductor weakness, however, as shares rallied amid increased investor optimism that their proposed merger will ultimately close.

Earnings-related selling added to the weakness in several individual names. Cooper (COO 54.17, -9.31, -14.67%) fell sharply after its Q3 revenue miss and downside Q4 guidance highlighted a steeper near-term slowdown at CooperVision. American Eagle (AEO 14.54, -2.35, -13.91%) was another pronounced laggard following its quarterly results, as continued softness at the American Eagle brand and a modest reduction to back-half operating income expectations overshadowed strength at Aerie. Several other apparel stocks traded lower in sympathy.

There were some pockets of strength outside the technology sector. Reddit (RDDT 155.36, +8.92, +6.09%) ranked among the better-performing S&P 500 components, while Comcast (CMCSA 25.17, +0.58, +2.36%) and CHTR rebounded from Wednesday's declines. Both stocks had come under pressure in the prior session after Comcast highlighted heightened "competitive intensity" during comments at the Goldman Sachs Communacopia + Technology Conference. The communication services sector finished 0.3% higher, while the consumer staples sector (+0.2%) also finished modestly higher.

Attention now turns to a pair of potentially significant catalysts. Oracle (ORCL 153.17, -8.46, -5.23%) reports earnings after today's close and faces elevated expectations surrounding its rapidly expanding AI infrastructure business and massive data center buildout. Investors will be looking for continued cloud acceleration as new capacity comes online, along with evidence that the company's heavy infrastructure investment is progressing as planned.

Tomorrow morning's August CPI report (Briefing.com consensus: 0.4%) carries even broader implications. The report is widely viewed as a key deciding factor in whether the Fed raises rates or remains on hold at next week's FOMC meeting, putting inflation and the policy outlook squarely in focus following three consecutive losing sessions for the stock market.

Selling in U.S. Treasuries on Thursday produced yet another round of fresh 2026 highs in yields on notes and bonds of all tenors.  Today's strong 30-year bond reopening briefly returned the 30-year yield to its opening level before late pressure lifted that yield to within five basis points of its high from 2007 (5.408%). The 2-year note yield settled up 12 basis points to 4.55%, and the 10-year note yield settled up 11 basis point to 4.94%.

• Russell 2000: +16.5% YTD
• Nasdaq Composite: +12.2% YTD
• S&P Mid Cap 400: +11.5% YTD
• S&P 500: +10.9% YTD
• DJIA: +8.3% YTD

Reviewing today's data: 

• August PPI 0.4% (Briefing.com consensus 0.4%); Prior was revised to 0.1% from 0.0%, August Core PPI 0.2% (Briefing.com consensus 0.3%); Prior was revised to 0.3% from 0.2%
  • The key takeaway from the report is that while the slightly cooler-than-expected core PPI was a positive sight, it was essentially masked by the upward revisions to readings for July, so this report reinforces the market's expectations for a rate hike as early as next week.
• Weekly Initial Claims 206K (Briefing.com consensus 208K); Prior was revised to 207K from 206K, Weekly Continuing Claims 1.774 mln; Prior was revised to 1.775 mln from 1.779 mln
  • The key takeaway from the report is that initial claims remain locked in a narrow range right on their four-week moving average, signaling little overall change in layoff activity.
• August Existing Home Sales 3.98 mln (Briefing.com consensus 4.03 mln); Prior 4.06 mln
  • The key takeaway from the report is that home sales remain pressured by high mortgage rates and limited inventory, especially at the lower end. Sales of homes priced at $500,000 and below have faced the most pressure while sales of homes priced over $1 million have were up 3.9% year-over-year in August.
• July Wholesale Inventories 1.3% (Briefing.com consensus 1.3%); Prior was revised to 0.4% from 0.2%

[BRIEFING.COM] The major averages are back near session lows with just half an hour left in today's session.

Investors have several notable events to look forward to after today's close and before tomorrow's open. Oracle (ORCL 153.88, -7.75, -4.79%) is the largest company reporting earnings this week, with its results due after the close today. The company faces elevated expectations surrounding its rapidly expanding AI infrastructure business and massive data center buildout. Shares sold off following last quarter's report as Q1 revenue guidance was only in line with expectations, Oracle reaffirmed rather than raised its FY27 revenue outlook, and management warned of another step down in gross margin. Tonight, investors will be looking for continued cloud acceleration as new capacity comes online, along with signs that the company's heavy infrastructure investment is progressing as planned.

Additionally, the market will receive the August CPI report (Briefing.com consensus 0.4%) tomorrow morning, which many investors view as the ultimate deciding factor in whether the Fed will raise rates or remain on hold at next week's FOMC meeting.

[BRIEFING.COM] The S&P 500 (-0.6%), Nasdaq Composite (-0.6%), and DJIA (-0.7%) remain on track for a firmly lower finish as the market enters the final hour of the session.

Oil prices continued to move higher throughout the afternoon, with crude oil futures settling today's session $6.32 higher (+6.6%) at $102.3 per barrel. Crude oil is up roughly 11.5% week-to-date so far.

[BRIEFING.COM] The S&P 500 (-0.57%) is down about 44 points this afternoon.

Briefly, S&P 500 constituents Freeport-McMoRan (FCX 70.70, -5.53, -7.25%), Baker Hughes (BKR 59.18, -4.46, -7.01%), and Lam Research (LRCX 299.91, -15.93, -5.04%) dot the bottom of the average. FCX slides as uncertainty over refined-copper tariffs weighs on copper prices and prompts profit-taking, while BKR falls despite rising crude oil prices (the company did appear at a Jefferies Industrials conference today), while LRCX mirrors broader weakness in the semiconductor sector.

Meanwhile, Elevance Health (ELV 419.59, +24.41, +6.18%) is notably higher after reaffirming FY26 earnings guidance, with its adjusted EPS outlook of at least $27 modestly above consensus and managed-care peers also trading higher.

[BRIEFING.COM] The tech-heavy Nasdaq Composite (-0.50%) is down about 131 points this afternoon, good enough for first place among the major averages.

Gold futures settled $53.40 lower (-1.2%) at $4,407.30/oz, as hotter U.S. inflation and surging oil prices have boosted expectations for a Fed rate hike next week. Rising Treasury yields and a firmer dollar are further weighing on the non-yielding metal.

Meanwhile, the U.S. Dollar Index is up about +0.2% to $98.99.

[BRIEFING.COM] The Dow Jones Industrial Average (-0.61%) is down now about 320 points, today's worst-performing major average.

A look inside the DJIA shows that Amgen (AMGN 382.39, -8.88, -2.27%), NVIDIA (NVDA 218.53, -4.89, -2.19%), and Merck (MRK 144.89, -2.64, -1.79%) are underperforming.

Meanwhile, Apple (AAPL 324.21, +8.87, +2.81%) is firmly higher.

The DJIA has now amassed losses of -3.14% over the last 3+ sessions.

Elsewhere, U.S. Treasuries trade just above their lowest levels of the year after today's opening retreat, which took place alongside an acceleration in crude oil's rally past $100/bbl, and received added pressure from a PPI report for August that showed little relief on the inflationary front ahead of tomorrow's release of August CPI (Briefing.com consensus 0.4%; prior 0.1%) and Core CPI (Briefing.com consensus 0.2%; prior 0.2%). The past few minutes have some impulse buying after the U.S. Treasury completed this week's note and bond auction slate with a stellar $22 bln 30-yr bond reopening. The sale drew a high yield of 5.308%, which stopped through the when-issued yield by a stunning 2.7 basis points while the bid-to-cover ratio (2.61x vs 2.41x average) and indirect takedown (79.5% vs 66.5% average) were well above average. This makes for a great finish to this week's strong auction slate, though it would be hard to surmise that from the overall action, which has yields pinned to their highest levels of the year.

[BRIEFING.COM] Stocks remain under pressure for the third consecutive session of the holiday-abbreviated week, with rising oil prices, higher Treasury yields, and increased expectations for a rate hike keeping buyers on the defensive. The S&P 500 (-0.5%), Nasdaq Composite (-0.5%), and DJIA (-0.6%) remain firmly lower just after midday, while weakness is somewhat more pronounced among smaller stocks, with the Russell 2000 (-0.8%) and S&P Mid Cap 400 (-0.6%) also in negative territory.

Crude oil remains one of the market's primary headwinds as an off-ramp to the U.S.-Iran conflict remains elusive. WTI crude has surged $5.18 (+5.4%) to $101.23 per barrel, extending the oil-driven pressure that weighed on stocks in the previous two sessions. Treasury yields are also moving higher again, with the 10-year note yield at 4.91%.

This morning's August Producer Price Index (0.4%; Briefing.com consensus: 0.4%) added to the difficult backdrop. Although core PPI (0.2%; Briefing.com consensus: 0.3%) came in slightly cooler than expected, upward revisions to the July readings and the continued acceleration in year-over-year producer inflation reinforced expectations that the Fed could raise rates as soon as next week's FOMC meeting. The market is now pricing in a 71.8% probability of a rate hike, up from 61.2% yesterday, according to the CME FedWatch tool.

The selling remains broad, with nine of the 11 S&P 500 sectors trading lower. The materials sector (-1.5%) sits at the bottom of the standings as precious metal prices decline, while the information technology sector (-0.8%) is another notable laggard as semiconductor stocks reverse their relative strength from earlier in the week. The PHLX Semiconductor Index is down 2.2%, with NVIDIA (NVDA 218.57, -5.10, -2.28%) among the more pronounced mega-cap laggards. Taiwan Semiconductor Manufacturing (TSM 430.00, -5.36, -1.23%) is also lower despite reporting a 53.3% year-over-year increase in August revenue to NT$514.81 billion, with some profit-taking following the stock's strong recent run contributing to the muted response. Skyworks (SWKS 83.71, +7.17, +9.37%) is a notable exception to the semiconductor weakness and ranks among the best-performing S&P 500 components.

There are also several earnings-driven pockets of weakness. Cooper (COO 54.18, -9.30, -14.66%)is sharply lower after its Q3 revenue miss and downside Q4 guidance highlighted a steeper near-term slowdown at CooperVision. American Eagle (AEO 14.30, -2.59, -15.33%) is another sizable laggard following its quarterly results, with the reaction reflecting continued softness at the American Eagle brand and a modest reduction to the company's back-half operating income expectations. Several other apparel stocks are trading lower in sympathy.

The communication services sector is one of the few areas showing relative strength. Reddit (RDDT 156.22, +9.78, +6.68%) is among the strongest S&P 500 components, while Comcast (CMCSA 25.02, +0.42, +1.73%) and Charter Comm (CHTR 139.94, +6.05, +4.52%) are rebounding from yesterday's declines that followed Comcast's comments regarding heightened "competitive intensity" at the Goldman Sachs Communacopia + Technology Conference.

Overall, the market continues to contend with the same pressures that drove losses earlier in the week, only with crude oil now above $100 per barrel and expectations for a rate hike increasing following the PPI report. The combination of higher oil prices and elevated Treasury yields has kept selling pressure broad, while renewed semiconductor weakness has removed one of the market's more consistent pockets of support from the previous two sessions.

Reviewing today's data: 

• August PPI 0.4% (Briefing.com consensus 0.4%); Prior was revised to 0.1% from 0.0%, August Core PPI 0.2% (Briefing.com consensus 0.3%); Prior was revised to 0.3% from 0.2%
  • The key takeaway from the report is that while the slightly cooler-than-expected core PPI was a positive sight, it was essentially masked by the upward revisions to readings for July, so this report reinforces the market's expectations for a rate hike as early as next week.
• Weekly Initial Claims 206K (Briefing.com consensus 208K); Prior was revised to 207K from 206K, Weekly Continuing Claims 1.774 mln; Prior was revised to 1.775 mln from 1.779 mln
  • The key takeaway from the report is that initial claims remain locked in a narrow range right on their four-week moving average, signaling little overall change in layoff activity.
• August Existing Home Sales 3.98 mln (Briefing.com consensus 4.03 mln); Prior 4.06 mln
  • The key takeaway from the report is that home sales remain pressured by high mortgage rates and limited inventory, especially at the lower end. Sales of homes priced at $500,000 and below have faced the most pressure while sales of homes priced over $1 million have were up 3.9% year-over-year in August.
• July Wholesale Inventories 1.3% (Briefing.com consensus 1.3%); Prior was revised to 0.4% from 0.2%

[BRIEFING.COM] The S&P 500 (-0.6%), Nasdaq Composite (-0.6%), and DJIA (-0.6%) remain firmly lower just after midday.

Taiwan Semiconductor Manufacturing (TSM 429.44, -5.92, -1.36%) is modestly lower despite reporting a 53.3% year-over-year increase in August revenue to NT$514.81 billion, with the negative response likely reflecting some profit-taking after the stock's strong recent run. The results nonetheless point to continued strength in demand for the company's advanced-node manufacturing capacity, supported by AI and high-performance computing.

Semiconductor stocks remain a point of weakness, with the PHLX Semiconductor Index down 2.4%. However, Skyworks (SWKS 83.34, +6.80, +8.88%) is the best-performing S&P 500 component today. 

[BRIEFING.COM] The major averages remain little changed from previous levels at midday.

On the earnings front, Cooper (COO 54.70, -8.78, -13.84%) is plunging lower after a Q3 revenue miss and sharp downside Q4 guidance exposed a steeper near-term slowdown at CooperVision, while the completed strategic review ended without a sale of CooperSurgical. Q4 guidance calls for adjusted EPS of $1.05-$1.09 versus the $1.19 FactSet consensus and revenue of $1.057-$1.080 billion versus $1.11 billion, outweighing healthy U.S. consumption, record free cash flow, and expanded repurchase capacity.

American Eagle (AEO 14.40, -2.50, -14.77%) is also sharply lower today after reporting its Q2 (Jul) results last night. The company's results paint a mixed picture, with Aerie continuing to carry much of the growth while the larger American Eagle brand remains softer. The tariff refund also makes the headline EPS beat and margin expansion look much stronger, with gross margin contracting year-over-year after excluding the 1,300-bp benefit amid merchandise margin pressure and AE markdowns. There are encouraging signs at AE, including a fourth straight positive comp in men's and improving women's denim, while Q3-to-date comps have improved to roughly flat from -1% in Q2. Aerie, meanwhile, continues to comp in the high-teens to 20% range, though it will lap a much tougher +23% comparison in Q4, making the durability of that strength worth watching. The main drag appears to be the modest trim to back-half operating income expectations, with AE now expected to be roughly flat versus prior low-single-digit growth. This puts greater focus on holiday execution and whether AE can build on its recent sequential improvement as Aerie moves into tougher comparisons. A host of other apparel stocks trade lower in sympathy with American Eagle's post-earnings move.

[BRIEFING.COM] Stocks are under pressure for the third consecutive session of the holiday-abbreviated week, with the S&P 500 (-0.4%), Nasdaq Composite (-0.4%), and DJIA (-0.4%) holding similar losses just before midday.

The market continues to face oil-driven pressure, with WTI crude oil topping the $100 per barrel mark as an off-ramp to the U.S.-Iran conflict remains elusive. Treasury yields continue to push higher, with the 10-year note yield up nine basis points to 4.92%.

The reaction across stocks is another day of broad weakness, with decliners outpacing advancers by a greater than 2-to-1 ratio on both the NYSE and the Nasdaq, and nine S&P 500 sectors trading lower.

The materials sector (-1.5%) is the worst laggard as precious metal prices decrease today, though the information technology sector (-0.7%) weighs on the major averages as the PHLX Semiconductor Index (-1.9%) retreats after showing resilience in previous sessions this week.

[BRIEFING.COM] The major averages remain firmly lower, though they continue to improve from their worst levels of the morning.

Nine sectors remain in negative territory, though the communication services sector (+0.3%) is a rare bright spot, supported by strength in Reddit (RDDT 154.57, +8.13, +5.55%) , which is the top-performing S&P 500 component today.

Additionally, Comcast (CMCSA 24.92, +0.34, +1.36%) and Charter Comm (CHTR 139.04, +5.15, +3.85%) are rebounding from yesterday's weakness that followed Comcast's comments regarding heightened "competitive intensity" at the Goldman Sachs Communacopia + Technology Conference.

[BRIEFING.COM] The S&P 500 (-0.5%), Nasdaq Composite (-0.5%), and DJIA (-0.4%) are slightly improved from their worst levels as several more defensive-oriented sectors now trade higher.

Existing home sales decreased 2.0% month-over-month in August to a seasonally adjusted annual rate of 3.98 million (Briefing.com consensus 4.03 million) from 4.06 million in July. Sales were down 1.2% on a year-over-year basis.

The key takeaway from the report is that home sales remain pressured by high mortgage rates and limited inventory, especially at the lower end. Sales of homes priced at $500,000 and below have faced the most pressure while sales of homes priced over $1 million have were up 3.9% year-over-year in August.

[BRIEFING.COM] Stocks are broadly lower just after the open, with the S&P 500 (-0.7%), Nasdaq Composite (-0.7%), and DJIA (-0.6%) extending this week's losses.

The market continues to face pressure from rising oil prices and inflation concerns as WTI crude surges toward the $100 per barrel mark, currently up $3.47 (+3.6%) to $99.51 per barrel. Bloomberg reports that the U.S. and Iran are bracing for a protracted war as a ceasefire remains elusive. Similarly, the 10-year note yield (4.93%) is testing the 5% mark.

Nine S&P 500 sectors trade lower, with the top-weighted information technology sector (-1.3%) weighing at the index level. After several resilient showings to start the week, semiconductor stocks are giving back their previous strength, with the PHLX Semiconductor Index down 2.7%.

Meanwhile, the defensive consumer staples sector (+0.7%) holds a decent gain, while the real estate sector trades on its flat line.

Just released, existing home sales decreased 2.0% month-over-month in August to a seasonally adjusted annual rate of 3.98 million (Briefing.com consensus: 4.03 million) from the prior level of 4.06 million.

Wholesale inventories increased by 1.3% in July (Briefing.com consensus 1.3%), from a previous increase of 0.2%.

The stock market remains on track for a lower opening, pressured by rising oil prices and Treasury yields as well as expectations for a rate hike from the FOMC. 

Total PPI was up 0.4% month-over-month in August (Briefing.com consensus 0.4%) after a revised 0.1% increase (from 0.0%) in July. Core PPI, which excludes food and energy, was up 0.2% month-over-month (Briefing.com consensus 0.3%) after increasing a revised 0.3% (from 0.2%) in July.

Total PPI was up 5.4% year-over-year, up from 4.8% in July. Core PPI was up 4.6% year-over-year versus 4.3% in July.

The key takeaway from the report is that while the slightly cooler-than-expected core PPI was a positive sight, it was essentially masked by the upward revisions to readings for July, so this report reinforces the market's expectations for a rate hike as early as next week.

Initial jobless claims for the week ending September 5 decreased by 1,000 to 206,000 (Briefing.com consensus 208,000) from last week's revised total of 207,000 (from 206,000). Continuing jobless claims for the week ending August 29 also decreased by 1,000 to 1.774 million from last week's revised total of 1.775 million (from 1.779 million).

The key takeaway from the report is that initial claims remain locked in a narrow range right on their four-week moving average, signaling little overall change in layoff activity.

The S&P 500 futures currently trade 46 points below fair value. 

Equity indices in the Asia-Pacific region ended Thursday on a mostly lower note. Bank of Japan policymaker Masu said that the central bank needs to pull real rates out of negative territory, adding that accelerating inflation could force additional rate hikes. China's National Development and Reform Commission discussed its five-year plan with representatives from Amazon, NVIDIA, Dell, and many other U.S. companies. Australia relaxed its gas reserve rules for exporters of LNG.

• In economic data:
  • Australia's September MI Inflation Expectations held at 4.9%.

---Equity Markets---

• Japan's Nikkei: +0.2%
• Hong Kong's Hang Seng: -1.3%
• China's Shanghai Composite: -0.4%
• India's Sensex: +0.2%
• South Korea's Kospi: -0.3%
• Australia's ASX All Ordinaries: -1.0%

Major European indices trade with modest gains while the U.K.'s FTSE (-0.3%) underperforms, falling to its lowest level since late July. Associated British Foods has been decimated due to weak performance in its Primark unit. The European Central Bank is widely expected to announce a rate hike at 8:15 ET and the market will also be curious to see the central bank's latest projections. British Prime Minister Burnham opened the door for another Scottish independence referendum.

• In economic data:
  • Germany's final August CPI increased 0.2% month-over-month, as expected, following a 0.8% increase in July. CPI was up 2.9% year-over-year, as expected and unchanged from July.
  • Italy's July industrial production increased 0.7% month-over-month, above the expected 0.3% increase, following a 1.1% decline in June. Production was unchanged year-over-year versus an expected 0.6% decline and a prior 0.6% decline.
  • Spain's July industrial production increased 2.3% year-over-year following a 1.1% increase in June.

---Equity Markets---

• STOXX Europe 600: -0.1%
• Germany's DAX: -0.6%
• U.K.'s FTSE 100: -0.4%
• France's CAC 40: -0.3%
• Italy's FTSE MIB: -0.1%
• Spain's IBEX 35: -0.1%

The S&P 500 futures currently trade 34 points below fair value. 

Total PPI was up 0.4% month-over-month in August (Briefing.com consensus: 0.4%) following an upwardly revised 0.1% increase (from 0.0%) in July.

Core PPI, which excludes food and energy, increased 0.2% month-over-month (Briefing.com consensus: 0.3%) following an upwardly revised 0.3% increase (from 0.2%) in July.

Initial jobless claims for the week ending September 5 decreased by 1,000 to 206,000 (Briefing.com consensus: 208,000) from the upwardly revised prior level of 207,000 (from 206,000).

Continuing jobless claims for the week ending August 29 decreased by 1,000 to 1.774 million from the downwardly revised prior level of 1.775 million (from 1.779 million).

Equity futures point to a lower open this morning as stocks look to stabilize following back-to-back losing sessions. Higher oil prices and Treasury yields have been a persistent source of pressure over the past two days, and both are moving higher again this morning. WTI crude is trading above $97 per barrel, while the 10-year note yield has climbed to 4.87%.

Participants will receive the August Producer Price Index and weekly jobless claims at 8:30 ET, although tomorrow's release of the August Consumer Price Index is viewed as the more consequential catalyst ahead of next week's FOMC meeting. The CME FedWatch Tool currently assigns a 62.2% probability to a rate hike in September, leaving the policy outlook particularly sensitive to the upcoming inflation data.

The European Central Bank's policy decision at 8:15 ET is another focal point this morning, with a rate hike widely expected. European markets are mixed ahead of the announcement, while most Asian markets finished lower amid renewed attention on the Bank of Japan's policy path.

Today's remaining economic calendar:

• 8:30 AM ET: August PPI; Briefing.com consensus 0.4%; prior 0.0%
• 8:30 AM ET: August Core PPI; Briefing.com consensus 0.3%; prior 0.2%
• 8:30 AM ET: 09/05 Initial Claims; Briefing.com consensus 208K; prior 206K
• 8:30 AM ET: 08/29 Continuing Claims; prior 1779K
• 10:00 AM ET: August Existing Home Sales; Briefing.com consensus 4.03M; prior 4.06M
• 10:00 AM ET: July Wholesale Inventories; Briefing.com consensus 1.3%; prior 0.2%
• 10:30 AM ET: 09/05 EIA Natural Gas Inventories; prior +30 bcf
• 12:00 PM ET: 09/05 EIA Crude Oil Inventories; prior -4.45M

In corporate news:

• AeroVironment (AVAV 148.44, +7.64, +5.43%) beat fiscal first-quarter earnings and revenue expectations and issued FY27 revenue and adjusted EBITDA guidance.
• Kinetik (KNTK 56.89, +2.34, +4.29%) is weighing strategic alternatives, including a possible sale, according to Bloomberg.
• Taiwan Semiconductor Manufacturing (TSM 431.00, -4.36, -1.0%) saw August revenues rise by 53% to a record high.

Reviewing overnight developments:

Equity markets ended mostly lower as comments from a Bank of Japan policymaker kept the prospect of additional rate hikes in view. Japan's Nikkei: +0.2%, Hong Kong's Hang Seng: -1.3%, China's Shanghai Composite: -0.4%, India's Sensex: +0.2%, South Korea's Kospi: -0.3%, Australia's ASX All Ordinaries: -1.0%.

In news:

• Bank of Japan policymaker Masu said the central bank needs to move real rates out of negative territory and that accelerating inflation could require additional rate hikes.
• China's National Development and Reform Commission discussed its five-year plan with representatives from several U.S. companies.
• Australia relaxed its gas reserve rules for LNG exporters.

In economic data:

• Australia's September MI Inflation Expectations 4.9% (last 4.9%)

Major markets are mixed ahead of the European Central Bank's policy decision, with the U.K. market underperforming. STOXX Europe 600: -0.1%, Germany's DAX: +0.1%, U.K.'s FTSE 100: -0.3%, France's CAC 40: +0.1%, Italy's FTSE MIB: +0.4%, Spain's IBEX 35: +0.4%.

In news:

• The European Central Bank is widely expected to announce a rate hike at 8:15 ET and will also release updated projections.
• British Prime Minister Burnham opened the door to another Scottish independence referendum.

In economic data:

• Germany's final August CPI 0.2% m/m, as expected (last 0.8%); 2.9% yr/yr, as expected (last 2.9%)
• Italy's July Industrial Production 0.7% m/m (expected 0.3%; last -1.1%); 0.0% yr/yr (expected -0.6%; last -0.6%)
• Spain's July Industrial Production 2.3% yr/yr (last 1.1%)

[BRIEFING.COM] The major averages extended their holiday-shortened week decline on Wednesday as rising oil prices and higher Treasury yields kept equities under pressure throughout the session. The S&P 500 (-0.5%), Nasdaq Composite (-0.6%), and DJIA (-0.8%) all finished lower, while the Russell 2000 (-1.3%) and S&P Mid Cap 400 (-1.1%) underperformed amid even steeper losses outside the large-cap averages.

Crude oil remained one of the session's primary headwinds as the U.S.-Iran conflict continued to escalate. WTI crude settled $3.05 higher (+3.3%) at $96.07 per barrel after reports that the U.S. struck several Iranian oil tankers in response to an attack on one of its warships. Iran subsequently warned that it would escalate its counterstrikes as U.S. attacks continue, according to Bloomberg. The advance in crude provided a considerable boost to the energy sector (+1.1%), which stood alone in positive territory among the 11 S&P 500 sectors.

Higher Treasury yields added another layer of pressure after the Treasury Department announced plans to buy back $6 billion of long-term debt. The announcement sparked a sharp increase in rates during the late morning and helped push stocks to their session lows. The 10-year note yield ultimately settled three basis points higher at 4.84%.

The combination of higher oil prices and rising rates weighed particularly heavily on several economically and rate-sensitive areas. The consumer discretionary (-1.4%) and consumer staples (-0.9%) sectors finished with sizable losses, while the utilities (-1.2%) and real estate (-1.1%) sectors also struggled.

The industrials sector (-1.5%) finished at the bottom of the sector standings, with Vertiv (VRT 262.87, -27.96, -9.61%) among the more pronounced laggards.

Casey's General (CASY 629.03, -104.46, -14.24%) was another notable decliner, finishing as the weakest S&P 500 components following its earnings report. The company exceeded EPS and revenue expectations, but the reaction reflected some disappointment surrounding its inside operations and outlook for the remainder of the year.

The information technology sector (-0.2%) once again held up considerably better than the broader market as semiconductor stocks extended their recent relative strength. The PHLX Semiconductor Index gained 0.4%, with several semiconductor names ranking among the better-performing S&P 500 components, although weakness in NVIDIA (NVDA 223.79, -1.94, -0.86%) limited the group's contribution.

Apple (AAPL 315.34, -0.88, -0.28%) briefly moved into positive territory during the afternoon following the company's product event before ultimately finishing the session lower. Apple introduced the iPhone Duo, its first foldable iPhone, along with the iPhone 18.

Meta Platforms (META 653.69, +40.21, +6.55%) remained the standout among the mega-cap stocks following the debut of its Muse personal AI agent. Its sizable gain helped limit the communication services sector's decline to 0.3% despite weakness in Alphabet (GOOG 328.38, -7.00, -2.09%) and sharp losses in Comcast (CMCSA 24.59, -1.74, -6.61%) and Charter Comm (CHTR 133.89, -11.85, -8.13%) . The latter two came under pressure after Comcast highlighted heightened "competitive intensity" during comments at the Goldman Sachs Communacopia + Technology Conference.

By the close, the scattered strength in semiconductors and META had done little to change the broader complexion of the session. Small- and mid-cap stocks underperformed, 10 of the 11 S&P 500 sectors declined, and the energy sector's gain largely reflected the same surge in crude oil that weighed on much of the rest of the market. With Treasury yields also moving higher, Wednesday's action extended the broadly defensive start to the abbreviated week.

U.S. Treasuries finished Wednesday with losses across the curve, which produced fresh 2026 highs in yields on the 10-year note and shorter tenors. Treasuries climbed off their opening lows with the long bond leading the way, but that move was rebuffed after the U.S. Treasury specified its increased buyback plans. Treasuries reached lows shortly after the news, recovering some of their losses as the day went on. The bounce received some short-lived support from an excellent $38 billion 10-year note sale, but shorter tenors returned to their lows ahead of the close. The 2-year note yield settled up three basis points to 4.43%, and the 10-year note yield settled up three basis points to 4.84%. 

• Russell 2000: +17.7% YTD
• Nasdaq Composite: +13.0% YTD
• S&P Mid Cap 400: +12.5% YTD
• S&P 500: +11.6% YTD
• DJIA: +9.0% YTD

Reviewing today's data: 

• Weekly MBA Mortgage Applications Index -2.7%; Prior 0.8%