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August 11, 2026 - 20:04
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(Bloomberg) — Wall Street refrained from making big bets on stocks and bonds ahead of a key inflation report, with oil resuming its advance as traders assessed the latest developments in the Middle East.US crude topped $83 as Iran reiterated plans to keep the Strait of Hormuz shut until its demands are met. Oil had earlier retreated after Pakistan signaled a potential deal that could reduce tensions roiling energy markets. While most shares in the S&P 500 rose, the index fell. Treasury yields edged lower ahead of data that’s expected to show moderation in consumer prices.Iranian officials have signaled that Tehran and Oman may be nearing an agreement, but it remains unclear whether such a deal would lead to an immediate and full reopening of the strait.President Donald Trump has recently toughened his stance, saying Tehran should pay reparations for those killed in attacks linked to the Islamic Republic and in domestic protests. His comments came in response to a series of demands laid out by Iran, including compensation for US violations of an interim peace deal.“Investors have been awaiting a deal for a few weeks, and tangible progress is likely required for yields to fall significantly and stocks to rally further at this juncture,” said Jose Torres at Interactive Brokers.“We see crude oil prices driving the war narrative, with price swings likely to dictate the pace of escalation and de-escalation,” said Elias Haddad at Brown Brothers Harriman & Co.Wednesday’s consumer price index is likely to show a cooling of energy-related pressures that had intensified in the months immediately following the start of the war. That may help alleviate some of the anxiety at the Federal Reserve after three officials dissented in July in favor of raising rates.“I expect the CPI report to continue its downward trend which will further support the case for the Federal Reserve to hold rates steady rather than hiking them, even with last Friday’s weak jobs report,” said Dennis Follmer at Montis Financial.Data Tuesday showed sales of existing homes fell to a three-month low in July as elevated prices and mortgage rates continued to weigh on the housing market. Small-business optimism rose to the highest level in almost a year as firms ramped up hiring plans and inflation pressures eased.“A resolution to the Middle East conflict could provide an additional boost to sentiment,” said Jeffrey Roach at LPL Financial. “One particularly encouraging observation from the report’s summary was the reminder that ‘the world has plenty of oil.’ Economic conditions are favorable for risk appetite.”Corporate Highlights:SpaceXAI is rolling out new artificial intelligence software that’s designed to act like a team of AI agents fielding assignments throughout the day, marking the latest bid by Elon Musk’s company to keep pace with Anthropic PBC and OpenAI. Anthropic PBC struck a $9.1 billion deal with Riot Platforms Inc., a Bitcoin mining company that recently began selling AI data center capacity, people familiar with the matter said. On Holding AG posted disappointing second-quarter sales as the Swiss brand held off from discounting older shoe models ahead of product updates in the highly promotional US market. Fermi Inc. announced its first binding lease with TensorWave Inc. for its massive data center campus under development in West Texas. Hims & Hers Health Inc. reported a second-quarter loss that fell short of Wall Street’s estimates as its focus on selling brand-name weight-loss drugs over copycat versions has proven less profitable. Some of the main moves in markets:StocksThe S&P 500 fell 0.2% as of 2:04 p.m. New York time The Nasdaq 100 fell 0.3% The Dow Jones Industrial Average fell 0.2% The MSCI World Index fell 0.2% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1537 The British pound was little changed at $1.3501 The Japanese yen was little changed at 159.31 per dollar CryptocurrenciesBitcoin fell 0.9% to $63,552.3 Ether fell 0.8% to $1,863.53 BondsThe yield on 10-year Treasuries declined two basis points to 4.69% Germany’s 10-year yield declined two basis points to 3.16% Britain’s 10-year yield declined two basis points to 4.96% CommoditiesWest Texas Intermediate crude rose 1.2% to $83.14 a barrel Spot gold fell 0.6% to $4,365.20 an ounce ©2026 Bloomberg L.P.
