Wall Street Highlights: US Stocks Slip As Oil Gains Keep Traders Cautious

Brent crude advanced toward $98 a barrel following the largest exchange of tanker attacks yet between Iran and the US. Traders also assessed reports of hits on Saudi Arabian oil infrastructure on the Red Sea and a potential accord between Iran and Oman to manage shipping through the Strait of Hormuz.

S&P 500 futures dropped 0.2% while Nasdaq 100 contracts gained. The Stoxx 600 fluctuated, with economically sensitive sectors among the biggest decliners as inflation concerns drove regional bond yields higher. South Korea's memory heavyweights were standouts in Asia as the release of OpenAI's GPT-6 model continued to fuel renewed enthusiasm for AI.

In currency markets, the yen strengthened to its highest level since February, surpassing the peak reached after July's intervention. The dollar fell 0.2%. Cash trading in Treasuries and US equities was closed for Labor Day. Copper surged to an all-time high.

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Traders are gearing up for a week jam-packed with events that will culminate in Friday's US inflation print, a reading that will go a long way to determining whether the Federal Reserve raises interest rates or holds them steady.

Ahead of the CPI report, the European Central Bank is widely expected to hike to stave off energy-driven inflation, while Treasury auctions will test demand for bonds with yields near multi-year highs.

"Markets will be adjusting their positioning heading into the Fed's blackout period. The risk is the Fed turning hawkish and that will be reflected in equities," said Geoff Yu, a senior macro strategist at BNY. "Bond markets will remain nervy and we remain focused on fixed-income volatility."

While economic data will likely be the biggest catalyst for markets this week, earnings will also help shape the outlook for key equity sectors. Results from Oracle Corp. and Adobe Inc. on Thursday will give investors a fresh read on AI infrastructure demand and the threat the technology poses to software makers.

For now, the earnings backdrop remains supportive. Investors should buy any dips in equities given a robust earnings outlook, said JPMorgan Chase & Co. strategists.

Even moderate central bank tightening would be unlikely to derail the positive backdrop for stocks unless inflation expectations change materially, said the team led by Mislav Matejka.

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"As corporate profits remain on an uptrend, any bout of weakness in equity prices would leave them cheaper," the strategists wrote. "We believe one should continue using the dips to add."

Some of the main moves in markets:

Stocks

• S&P 500 futures fell 0.2% as of 3:30 p.m. New York time
• Futures on the Dow Jones Industrial Average fell 0.6%
• Nasdaq 100 futures rose 0.1%
• The MSCI Asia Pacific Index rose 1.9%
• The MSCI Emerging Markets Index rose 1.7%
• S&P/BMV IPC fell 0.1%

Currencies

• The Bloomberg Dollar Spot Index fell 0.2% to the lowest since May 8, 2026
• The euro was little changed at $1.1623
• The British pound rose 0.2% to $1.3540
• The Japanese yen rose 1.2% to the highest in more than six months
• The offshore yuan was little changed at 6.7096 per dollar
• The Mexican peso slipped 0.3%, more than any closing loss since Aug. 28, 2026

Cryptocurrencies

• Bitcoin fell 0.9% to $79,225.01
• Ether fell 0.3% to $2,491.92

Bonds

• The yield on 10-year Treasuries was little changed at 4.78%
• Germany's 10-year yield advanced five basis points to 3.39%
• Britain's 10-year yield advanced four basis points to 5.18%

Commodities

• West Texas Intermediate crude rose 1.3% to the highest on record
• Spot gold fell 0.6% to $4,404.13 an ounce