Oil Prices Rise, Weigh on Wall Street  09/08 09:29

   U.S. stocks are weakening Tuesday in their return to trading from a 
three-day weekend after the latest fighting in the war with Iran pushed oil 
prices higher.

   NEW YORK (AP) -- U.S. stocks are weakening Tuesday in their return to 
trading from a three-day weekend after the latest fighting in the war with Iran 
pushed oil prices higher.

   The S&P 500 fell 0.4%. The Dow Jones Industrial Average was down 520 points, 
or 1%, as of 10 a.m. Eastern time, and the Nasdaq composite was 0.3% lower.

   In the oil market, the price for a barrel of Brent crude rose 1% to $97.95 
after briefly climbing as high as $99.46. It's jumped from roughly $72 over the 
last two months as increased fighting in the Middle East erodes hopes for a 
deal to reopen the Strait of Hormuz to oil tankers and get the global flow of 
crude going again.

   More expensive oil has worsened worries about the high inflation weighing on 
people and companies across the country, which gives extra heft to a couple 
reports coming later this week. On Thursday, the U.S. government will release 
its August report for inflation at the wholesale level, which economists expect 
will show an acceleration to 5.4% from 4.7% in July.

   The more closely watched report on inflation that U.S. consumers are feeling 
will arrive on Friday. That update will show how much people are paying for 
groceries, clothes and other costs of living, and economists expect it eased a 
bit to 3.3% from July's 3.4% inflation rate. That, though, remains well above 
the 2% target that the Federal Reserve has set as its goal.

   This week's updates on inflation will be the last before the Fed meets next 
week to decide whether to cut, raise or hold interest rates steady. The 
traditional move for the Fed when inflation is high is to raise its main 
interest rate. That in turn would filter out into the rest of the bond market, 
make it more expensive for companies and people to borrow, slow the overall 
economy, undercut prices for investments and hopefully rein in inflation.

   But President Donald Trump has been lobbying for lower interest rates 
instead, which could give the economy -- and inflation -- an extra kick. The 
Fed's new chairman, Kevin Warsh, has meanwhile said he wants to give financial 
markets fewer clues about what the Fed plans to do with interest rates in the 
short term.

   That all has traders betting on a 58% probability the Fed will raise its 
federal funds rate after its next meeting finishes on Sept. 16, according to 
data from CME Group.

   In the bond market, the yield on the 10-year Treasury remained at 4.78%, 
where it was late Friday, and is near its highest level since the autumn of 
2023.

   Higher Treasury yields put more pressure on companies to grow their profits 
in order to lift their stock prices.

   On Wall Street, Boston Scientific fell 2.7% after saying that a network 
outage caused by a cybersecurity incident earlier in the summer means that it's 
unlikely to meet forecasts it gave for sales and profit for the third quarter 
and for the fully year of 2026.

   Shares of Novartis that trade in the United States tumbled 12.6% after the 
Swiss pharmaceutical company gave a discouraging update on a study of a therapy 
for people living with myotonic dystrophy type 1, a neuromuscular disease.

   Qualcomm helped limit the market's losses after rising 4%. It announced a 
deal to collaborate with Amazon on large-scale AI data centers. The deal also 
gives Amazon the right to acquire up to 25 million of Qualcomm's shares at 
$161.26 per share.

   In stock markets abroad, Japan's Nikkei 225 sank 1.7% under the weight of 
losses for major exporters, which were hurt by more rises for the value of the 
Japanese yen against the U.S. dollar.

   A stronger yen erodes the value of sales made in U.S. dollars when Toyota 
Motor, Panasonic Holdings and other Japanese exporters have to translate them 
back into yen. The Bank of Japan is also scheduled to meet next week on 
interest rates, and speculation is climbing that it could raise rates.

   In China, indexes fell 0.4% in Hong Kong and rose 0.2% in Shanghai after the 
world's second-largest economy said its exports jumped 25% year-on-year in 
August, driven by strong demand for autos and high tech items.