US Stocks Drop as Rising Oil Prices Fuel Inflation Fears

U.S. stocks declined on Tuesday, September 8, 2026, as trading resumed after a three-day weekend, driven down by rising crude oil prices following recent Middle East conflict involving Iran. The Dow Jones Industrial Average dropped 575 points, or 1.1%, by midday Eastern time, while the S&P 500 slipped 0.4% and the Nasdaq composite edged down 0.1%. Higher energy costs heightened market worries regarding persistent inflationary pressures across the nation. Scroll To Continue with Content Brent crude rose 0.6% to $97.54 per barrel after briefly reaching $99.46. Oil prices have surged from approximately $72 in early July as ongoing fighting in the Middle East continues to restrict global supply channels. The surge in energy costs arrives ahead of crucial inflation data releases. The wholesale inflation report for August is scheduled for Thursday, with economists forecasting an acceleration to 5.4% from July's 4.7%. Meanwhile, consumer inflation data expected Friday is projected to ease slightly to 3.3% from 3.4%, remaining above the Federal Reserve's 2% target. These reports serve as the final economic indicators before the Federal Reserve's policy meeting next week. CME Group data indicates traders assign a 60% probability that the central bank will increase the federal funds rate on Sept. 16. In the bond market, the 10-year Treasury yield rose to 4.79% from 4.78%, remaining near its highest level since autumn 2023. Higher yields continue to apply pressure on corporate valuations. Individual stocks experienced significant swings. Boston Scientific tumbled 4.8% after warning that a summer network outage from a cybersecurity incident would likely cause it to miss third-quarter and full-year sales forecasts. Swiss drugmaker Novartis dropped 13.9% in U.S. trading following a disappointing trial update for its myotonic dystrophy type 1 therapy. Conversely, Qualcomm gained 3.8% to help cushion losses after announcing an artificial intelligence data center collaboration with Amazon, which includes an option for Amazon to buy up to 25 million Qualcomm shares at $161.26 per share. Global markets also registered losses. Japan's Nikkei 225 dropped 1.7% as a stronger yen hurt major exporters like Toyota Motor and Panasonic Holdings ahead of the Bank of Japan's interest rate meeting. China's Hong Kong index slipped 0.4%, while Shanghai gained 0.2% after Chinese exports surged 25% year-on-year in August.