Rapid Rise In Oil Prices and Steady Gains In Bond Yields Kept U.S. Stocks In Check

Barry Adams
10 Sep, 2026
New York City

Stocks remained under pressure for the third session in a row on Thursday as higher bond yields kept the U.S. stock market under pressure. 

The S&P 500 Index increased 0.1%, the tech-heavy Nasdaq Composite declined 0.2%, and the yield on 10-year U.S. Treasury notes advanced to a new 3-year high. 

U.S. Treasury yields pushed to fresh multiyear highs after the Treasury Department revealed details of its operation to buy back up to $6 billion in longer-term debt. 

The yield on the 10-year Treasury note climbed above 4.86%, tracking its highest point since late 2023. 

While Treasury Secretary Scott Bessent focused on controlling the long end of bond yield, investors focused on the persistent supply of new federal government debt, which shows no sign of easing. 

Fixed-income investors appeared to shrug off government efforts to lower borrowing costs, focusing instead on rapidly rising federal government debt and sticky macroeconomic trends.

Crude oil futures surged as escalating military clashes between the United States and Iran disrupted key shipping corridors near the Strait of Hormuz. 

The West Texas Intermediate crude oil price increased 1.5% to $94.71, and international benchmark Brent crude crossed $102 a barrel, recording its highest settlement level since late May. 

Investors are increasingly concerned that an extended energy shock will fuel broader inflation and compel central banks to maintain restrictive monetary policies for longer than previously estimated. 

Higher oil prices and rising bond yields dampened sentiment in stock trading as investors worried that higher-for-longer inflation and rising interest rates could dampen broader economic growth for years to come.   

 

Rise In Wholesale Price Signal Persistent Inflation as Oil Prices Continue to Climb

August's producer price inflation increased monthly by 0.4% and 5.4% over a year as higher energy costs filtered through various sectors of the economy.  

The measure of wholesale inflation in July edged up monthly 0.1% and increased 4.7% from a year ago, the report from the U.S. Bureau of Labor Statistics showed. 

In recent months, inflation has moderated, but it is still high, as consumers are struggling with more expensive groceries, fuel, and other essentials.   

Crude oil prices topped $100 a barrel, suggesting inflation is likely to stay elevated in September. 

Since the start of the U.S. and Israel war on Iran in late February, the price of a gallon of gasoline has soared 44%, and diesel has skyrocketed 59%, which is used in manufacturing, shipping, and transportation. 

The core rate of inflation, which excludes volatile food and energy categories, rose 0.2% from July to August and, compared with a year ago, accelerated to 4.6% from 4.2% in July. 

From July to August, food prices increased by 0.1%, and energy prices advanced by 4.2%.   

Other items that increased in price include airfares, hospital care, and electronic components, supported by the rapid building of artificial intelligence infrastructure.

The government is scheduled to release the report on consumer price inflation at 8:30 a.m. ET on Friday. 

 

U.S. Movers 

Apple Inc. increased 1.1% to $318.81 after the mobile device maker released several new products including the debut of $2,000 foldable iPhone Duo. 

American Eagle Outfitters dropped 11.8% to $16.89 after the specialty apparel retailer said comparable sales in the fiscal second quarter ending on August 1 decreased 1%. 

Total net revenue increased 8% to $1.38 billion from $1.28 billion, net income jumped $133.7 million from $76.8 million, and diluted earnings per share advanced to 79 cents from 45 cents a year ago. 

Comparable sales at American Eagle stores decreased 1%, and at Aerie increased 19%. 

The company received $196 million in tariff refunds, and net operating income benefitted by $161 million after adjusting for a $45 million expense related to the pre-sale of tariff refunds and other items. 

During the second quarter, the company returned $21 million to shareholders via a quarterly cash dividend of $0.125 per share, paid to shareholders of record as of July 10. 

The company estimated fiscal third-quarter comparable sales to rise in "mid-to-high-single-digits" and operating income between $110 million and $115 million. 

The teen retailer guided gross margin to remain flat from a year ago, with depreciation and amortization expenses of $55 million.  

The teen apparel retailer forecast operating income in the current quarter to range between $110 million and $115 million, substantially lower than the consensus estimate of between $122 million and $124 million.