CNBC

Lead Story

Resurgent inflation fears gripped Wall Street as West Texas Intermediate crude surged past $100 per barrel amid escalating U.S.-Iran hostilities in the Strait of Hormuz. Paired with an August Producer Price Index (PPI) print showing wholesale prices up 5.4% year-over-year, traders pushed the probability of a Federal Reserve interest rate hike next week to 70% while benchmark 10-year Treasury yields touched 4.86%.

Markets & Economics

U.S. equities suffered a fourth consecutive losing session, with the Dow Jones Industrial Average falling 300 points (0.6%), the S&P 500 losing 0.6%, and the Nasdaq Composite dropping 0.7%. Wholesale inflation came in at a 0.4% monthly rise (5.4% YoY), driving 30-year fixed mortgage rates past 7.07% for the first time since May 2025 Average 30-year fixed mortgage rate tops 7%. Overseas, the European Central Bank enacted a 25-basis-point rate hike as Eurozone energy inflation surged 14.3%. Housing metrics signaled further contraction, as August existing home sales dropped 2% to a multi-year low despite inventory rising to a 4.9-month supply Existing home sales fall 2% in August. Bond market pressure deepened as the 30-year Treasury yield touched 5.307%, completely absorbing the Treasury Department’s expanded $6 billion debt buyback operation.

Business & Earnings

Oracle headlined enterprise earnings after hours, surging 7% on a fiscal Q1 beat ($1.92 adjusted EPS vs. $1.74 expected; $19.35 billion revenue) powered by cloud infrastructure revenue doubling to $7.4 billion. In retail, Starbucks CEO Brian Niccol announced cafe renovations and service upgrades on CNBC following 7.9% Q3 same-store sales growth Starbucks CEO Brian Niccol says next stage of turnaround focuses on cafe makeovers, while Macy’s raised full-year guidance despite near-term Q3 loss forecasts. Enterprise AI advancements expanded as OpenAI launched “ChatGPT for Financial Services” with Morgan Stanley and Evercore, deploying GPT-6 Astra to automate pitchbooks and valuation models for Wall Street analysts OpenAI targets work of Wall Street junior bankers. Across tech, Apple CEO John Ternus debuted the $1,999 foldable iPhone Duo, TSMC reported record August revenue up 53% year-over-year, and Airbnb CEO Brian Chesky urged executives at Communacopia to embrace AI adoption Airbnb CEO Brian Chesky: AI is an existential risk.

Investing & Commentary

At the CNBC Investing Club Monthly Meeting, Jim Cramer revealed six favorite stocks to buy now: Meta Platforms, Micron, Intel, Bank of New York, Kimberly-Clark, and FedEx. Wall Street issued aggressive tech calls as JPMorgan upgraded Meta to Overweight with an $820 price target on agentic AI growth, while Piper Sandler initiated AMD ($600 PT) and Nvidia ($300 PT) as Overweight due to persistent GPU shortages. On asset allocation, BlackRock alternatives head Fabio Osta recommended replacing the traditional 60/40 portfolio with a 50/30/20 mix incorporating private markets to play the AI infrastructure buildout. Meanwhile, Jim Cramer warned that the 30-year Treasury yield climbing to 5.3% is becoming the primary driver of equity valuations, making risk-free government yields an increasingly tough competitor for stocks.

Also Worth Watching

• Elon Musk’s Boring Co. turns to Middle East for expansion in reaching $23 billion valuation (CNBC): Boring Co. raised $3 billion at a $23 billion valuation backed by UAE investors to expand its transit tunnels internationally.
• Coinbase partners with Moov to boost community bank stablecoin capabilities before Clarity vote (CNBC): Coinbase partnered with Moov to connect stablecoin payment infrastructure to community banks ahead of a key Senate vote on the Clarity Act.
• Kalshi launches ‘perps’ for gold and silver following CFTC approval (CNBC): Prediction market platform Kalshi secured CFTC approval to launch perpetual futures on gold and silver, expanding non-crypto derivatives trading.
• Ford announces $1 billion investment at Kentucky plant following DOT criticism on China (CNBC): Ford committed $1 billion to build a new paint shop at its Kentucky truck plant following DOT scrutiny regarding Chinese supply chain ties.
• Kimmel says interview with Senate candidate Talarico won’t air on ABC amid FCC threats (CNBC): Late-night host Jimmy Kimmel moved his interview with Texas Senate candidate James Talarico to YouTube following FCC equal-airtime pressure on ABC.

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