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August 6, 2026 - 18:21
3 minutes
(Bloomberg) — A renewed spike in oil prices sent stocks lower while boosting Treasury yields, fueling worries about inflationary pressures ahead of Friday’s jobs report.Escalating tensions in the Middle East and lack of clarity on a deal to revive the Strait of Hormuz drove Brent crude above $82. Higher energy costs stoked concerns the Federal Reserve will have to raise rates to curb price pressures. The S&P 500 extended losses into a second straight day. Memory companies Sandisk Corp. and Western Digital Corp. tumbled after their results.The passage of vessels belonging to the US, Israel, and other hostile countries through Hormuz will be prohibited, the semi-official Fars news agency reported, citing details of the Iran-Oman drafted deal. The Houthis attacked Saudi-backed forces in Yemen, raising concerns over a broadening of the war on Iran into a region-wide conflict.At the same time, the latest round of employment data continued to reflect labor-market resilience, reinforcing the assumption that inflation will drive the Fed decision next month, according to Vail Hartman at BMO Capital Markets.Employers in the US likely stepped up their pace of hiring in July, showing a steady appetite for workers despite the overhang of elevated inflation. Economists estimate the monthly jobs report on Friday will show an 80,000 increase in payrolls after the lower-than-expected 57,000 gain in June.“Friday’s jobs report is of greater importance for markets given how fast this stock market has rallied over the past week, and ultimately we will need to see a number that is not too hot and not too cold in order for the market to keep grinding higher,” said Clark Bellin at Bellwether Wealth.Corporate Highlights:DoorDash Inc. issued a profit forecast that topped analysts’ expectations, citing a boom in paying subscribers who tend to order takeout and groceries more frequently than non-members. Hertz Global Holdings Inc. beat Wall Street’s earnings estimates, a boost for the struggling rental car company following an unusual debt-raise maneuver and a warning of weakness in the used-vehicle market. Honeywell Aerospace Inc.’s unexpected reduction in its outlook startled investors just weeks after the supplier began operating as an independent company. Peloton Interactive Inc. gave a revenue forecast for the fiscal 2027 year that disappointed investors, marking the latest setback for the fitness technology company. Fiserv Inc. slashed its full-year profit outlook, sending shares slumping as analysts called the revised forecast a “disappointing outcome.” Some of the main moves in markets:StocksThe S&P 500 fell 0.3% as of 12:20 p.m. New York time The Nasdaq 100 fell 0.4% The Dow Jones Industrial Average fell 0.7% The MSCI World Index fell 0.3% CurrenciesThe Bloomberg Dollar Spot Index rose 0.2% The euro fell 0.3% to $1.1515 The British pound fell 0.1% to $1.3450 The Japanese yen fell 0.4% to 158.45 per dollar CryptocurrenciesBitcoin fell 0.3% to $64,580.55 Ether fell 0.3% to $1,909.54 BondsThe yield on 10-year Treasuries advanced six basis points to 4.67% Germany’s 10-year yield advanced three basis points to 3.14% Britain’s 10-year yield advanced five basis points to 4.94% CommoditiesWest Texas Intermediate crude rose 3.7% to $77.97 a barrel Spot gold fell 0.5% to $4,225.18 an ounce ©2026 Bloomberg L.P.
