9th September 2026 – (New York) Stocks slid on Tuesday in a holiday‑shortened week as rising oil prices and geopolitical tensions weighed on risk appetite ahead of key US inflation releases. The Dow Jones Industrial Average fell 628.18 points, or 1.18 per cent, to 52,786.07, while the S&P 500 lost 0.58 per cent to 7,673.52 and the Nasdaq Composite eased 0.32 per cent to 26,421.41. The retreat marked back‑to‑back declines for all three benchmarks after US markets were shut on Monday for Labour Day.
Brent crude settled just under the 100‑dollar threshold at 97.92 US dollars a barrel but rallied to 99 US dollars after the close, while West Texas Intermediate rose for a sixth straight session, its longest run since March, after the United States and Iran exchanged blows over the weekend. The energy advance pushed Treasury yields higher and refocused investors on inflation risks heading into this week’s producer and consumer price data, which could shape expectations for the Federal Reserve’s meeting next week.
Rate markets reflected heightened uncertainty. Fed funds futures implied roughly a six‑in‑ten chance of a quarter‑point increase at the 15th–16th September meeting, according to the CME Group’s FedWatch tool, with traders sensitive to any upside surprise in the August figures. As Nationwide’s chief market strategist Mark Hackett put it, a hotter‑than‑expected CPI print would make it “really difficult” for policymakers to stand pat.
Semiconductors outperformed and helped limit losses in growth shares. The VanEck Semiconductor ETF (SMH) gained 1.2 per cent, with Intel up 9.1 per cent, Advanced Micro Devices advancing 5.9 per cent and Broadcom climbing 3 per cent. Investors rotated into chip names even as energy strength weighed on broader sentiment, reflecting hopes for resilient end‑market demand and AI‑linked spending.
Elsewhere, the spike in crude added upward pressure on government bonds. The 10‑year Treasury yield hovered near its highest level since November 2023, while the two‑year touched levels last seen in January 2025, intensifying the equity market’s valuation headwinds.
Overseas, traders eyed a mixed Asia‑Pacific open. Japan’s Nikkei 225 and Topix were indicated lower, while South Korea’s Kospi and Kosdaq edged higher and Australia’s S&P/ASX 200 was marginally firmer, with the Middle East backdrop and oil track driving early direction.
Corporate and policy headlines also shaped sentiment. Market participants monitored renewed trade frictions between the United States and Canada, with Ottawa’s retaliatory tariffs on roughly 20 billion US dollars’ worth of American goods taking effect on Tuesday. In an address on Monday, President Donald Trump warned that Bombardier would face restrictions in the United States unless the Canadian planemaker manufactured domestically.
Commentary from Wall Street voices underscored the stakes around inflation and policy. Kara Murphy, chief investment officer at Kestra Investment Management, described the latest bout of volatility as a “speed bump”, noting the market’s focus has shifted to risks with the earnings season ebbing.
Additional references: Reuters staff photographers Jeenah Moon and Brendan McDermid captured trading‑floor images used widely in Tuesday’s coverage; the CME FedWatch tool is the standard reference for implied rate probabilities; and SMH tracks the MVIS US Listed Semiconductor 25 Index.
