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September 9, 2026 - 14:31
5 minutes
(Bloomberg) — US stocks and Treasuries slid in a market where inflation risks are the primary focus, with Brent crude topping $100 a barrel and prompting traders to boost bets on higher global interest rates.S&P 500 contracts fell 0.4%. Nasdaq 100 futures were down 0.6% after erasing early gains, echoing a rally in Asian technology shares that lost momentum as the session progressed. In Europe, sectors sensitive to the economy dragged the Stoxx 600 down 1.5%.Oil prices extended gains for a fourth day. In the latest escalation in the Middle East, US forces destroyed five Iranian tankers carrying crude in response to two attempts to hit a US Navy warship with ballistic missiles. Tehran responded by firing missiles at Jordan and warning ships in the Persian Gulf.Treasuries fell across the curve, with the shorter end bearing the brunt. The two-year yield climbed three basis point to hit 4.42%, the highest since 2024. Europe saw a steeper selloff. Investors are now waiting for an announcement on the size of Thursday’s buyback operation for outstanding 10-year and 20-year Treasuries, part of Treasury Secretary Scott Bessent’s efforts to restrain yields.Brent reaching a threshold last crossed in July comes days ahead of the latest US inflation print. The data is widely seen as decisive in tipping the scales for or against a Federal Reserve hike next week, with money markets pricing around a 65% chance of a move. Traders also favor four Bank of England and European Central Bank rate hikes by the end of 2027.“The risks to equity markets continue to pile up as the discount rate which they face gets higher and higher and higher,” said Ashley Lester, chief research officer at MSCI. “The question is to what extent can continued AI earnings growth continue to push equity markets onward.”A four-day rally in semiconductor stocks is set to end, with an exchange-traded fund tracking major chipmakers sliding more than 1% in US premarket trading. Apple Inc. slipped 0.3% ahead of the unveiling of the foldable iPhone.Worries over persistent price pressures, government borrowing and a wave of corporate issuance have pushed global yields to multi-year highs in recent weeks. The Treasury will offer $39 billion in 10-year notes Wednesday after selling $58 billion of three-year debt at the highest yield for an auction of that tenor since 2024.“Oil prices at $100 per barrel put inflation pressures back into the spotlight,” said Joachim Klement at Panmure Liberum. “In this environment and in the absence of forward guidance by the Fed, the ECB’s decision and Christine Lagarde’s comments on Thursday will gain weight.”In currency markets, the yen strengthened for a third day after Bessent challenged traders to test his resolve to boost Japan’s currency. The yen advanced 0.5% to 153.25 per dollar, while Bloomberg’s gauge of the greenback fell 0.2%.The risk of a pullback of as much as 10% in US stocks is rising as midterm elections approach and the market heads into a seasonally challenging stretch, according to RBC Capital Markets strategists.The team led by Lori Calvasina noted that the S&P 500 has fallen in September in five of the past 10 years. The US midterm election cycle could add volatility to the artificial-intelligence trade as some backlash emerges as a campaign issue, while the Iran war continues to be another headwind, they added.Corporate News:Uber Technologies Inc. is looking to raise €4.5 billion ($5.2 billion) from its debut five-part euro bond, the latest move by an American company to diversify its funding in Europe. Amazon.com Inc. kicked off the sale of its debut sterling bonds, with a four-part deal expected to be delivered later on Wednesday. Dow Inc. is considering plans to exit its $20 billion chemicals partnership with Saudi Aramco, people familiar with the matter said, as part of the US firm’s efforts to reshape its portfolio amid a prolonged downturn in the industry. Alphabet Inc.’s Google is planning its biggest investment in Europe, an artificial intelligence infrastructure build out worth at least €13 billion ($15.1 billion) in Finland. Some of the main moves in markets:StocksS&P 500 futures fell 0.4% as of 8:29 a.m. New York time Nasdaq 100 futures fell 0.6% Futures on the Dow Jones Industrial Average fell 0.8% The Stoxx Europe 600 fell 1.5% The MSCI World Index fell 0.2% CurrenciesThe Bloomberg Dollar Spot Index fell 0.2% The euro rose 0.2% to $1.1647 The British pound rose 0.1% to $1.3557 The Japanese yen rose 0.4% to 153.44 per dollar CryptocurrenciesBitcoin rose 1.1% to $79,370.35 Ether rose 0.7% to $2,501.17 BondsThe yield on 10-year Treasuries advanced two basis points to 4.81% Germany’s 10-year yield advanced five basis points to 3.42% Britain’s 10-year yield advanced six basis points to 5.23% CommoditiesWest Texas Intermediate crude rose 3.1% to $95.92 a barrel Spot gold rose 0.9% to $4,395.07 an ounce This story was produced with the assistance of Bloomberg Automation.–With assistance from Sujata Rao.©2026 Bloomberg L.P.
