CNBC

Lead Story

U.S. military forces launched a coordinated missile strike Saturday disabling three Iranian crude oil carriers near Kharg Island and the Gulf of Oman, a major escalation following an Iranian ballistic missile attack on Navy warships that has effectively closed the strategic Strait of Hormuz. This direct confrontation has injected massive geopolitical risk into global energy markets, threatening to choke off a vital shipping lane and driving fears of a broader oil supply shock.

Markets & Economics

U.S. stock indexes kicked off September on shaky footing, with the S&P 500 up just 0.1% for the week and the Nasdaq gaining 0.4%. Bond yields rose sharply after a stronger-than-expected August jobs report showed 162,000 payroll additions, prompting markets to price in a 58% probability of a quarter-point Federal Reserve rate hike on September 15-16. This looming rate decision has triggered an unusually aggressive public pressure campaign from the Trump administration, highlighted by Treasury Secretary Scott Bessent expressing serious economic concerns about rate hikes during a supply shock in a CNBC Interview. Adding to severe inflationary pressures, global crude jumped back over $90 a barrel, sending national average gasoline prices to a record Labor Day high of $4.03 per gallon, while diesel prices reached an all-time peak of $5.85 a gallon.

Business & Earnings

In a featured Squawk Box appearance, Berkshire Hathaway CEO Greg Abel detailed his AI playbook, emphasizing BHE’s massive data center energy opportunity and recounting how Berkshire completed a $10 billion direct stock purchase of Alphabet shares at a 6.5% discount to fund Google’s computer infrastructure; watch the Greg Abel Full Interview for more. Meanwhile, Walmart is aggressively challenging food delivery platforms with its new “Walmart Restaurant Delivery” service, expanding home delivery of Dunkin’ products to nearly 10,000 U.S. locations after a successful Express Delivery pilot with Subway. In aviation, Etihad Airways is doubling down on fleet expansion and targeting a break-even year despite Middle East flight disruptions and soaring jet-fuel costs, as explained in the Etihad CEO Interview. Finally, General Motors and Ford are leveraging their unused EV battery plants to pivot into the grid-scale energy storage system (ESS) and U.S. defense markets, seeking to tap into the data center boom and offset slowing domestic vehicle sales.

Investing & Commentary

Jim Cramer’s Charitable Trust went more defensive this week, locking in gains by trimming Palo Alto Networks and exiting Corning to redeploy capital into less cyclical names like BNY and high-yielding Kimberly-Clark. On the research front, Goldman Sachs is urging investors to buy the dip in five high-conviction ideas, identifying Alibaba Group, Ulta Beauty, and cruise operator Viking Holdings as heavily undervalued plays with strong operational catalysts ahead. Additionally, the Trump administration took an unprecedented step in “state capitalism,” with the Pentagon securing a 35% equity stake in North American Blue Energy Partners (NABEP) to control 65 billion barrels of Venezuelan oil reserves, bypassing major oil producers that have labeled Venezuela “uninvestable”.

Also Worth Watching

• [US, China Gear Up for AI Safety Talks] (CNBC): Treasury Secretary Scott Bessent is set to lead critical bilateral discussions in mid-September focused on monitoring frontier AI safety risks, cyberattacks, and Chinese distillation of U.S. models.
• [LeBron James Teases Partnership with Polymarket] (CNBC): The NBA legend posted a social media teaser indicating an upcoming sports prediction market campaign focused on football, aligning with Polymarket’s aggressive sports marketing restructuring.
• [This Enhanced Geothermal Project Aims to Fuel Data Centers] (CNBC): Fervo Energy is on track to commercially operate its Cape Station project in Utah next month, delivering 1 GW of carbon-free baseload electricity to Google and other utility buyers.
• [Italy’s Meloni Hits Major Political Milestone] (CNBC): Meloni’s coalition has officially become Italy’s longest-serving government since World War II, earning credit from bond markets for fiscal pragmatism despite stagnant GDP growth and massive debt.
• [White House Vets Candidates for Key CFTC Vacancies] (CNBC): Bipartisan openings at the CFTC remain a critical hurdle in Senate negotiations over passing the crypto-focused Clarity Act legislation.

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