Dow falls 180 pts as oil rises on Hormuz fears; Nasdaq slips before CPI data

• WTI crude rose 1.6% to $83.48 per barrel and Brent climbed 1.6% to $89.2 per barrel as Iran maintained the Strait of Hormuz would remain closed until US conditions are met, raising inflation concerns
• Technology sector dragged markets lower with Alphabet down ~3% on restructuring concerns, while Nvidia, Apple, and Amazon also traded lower despite positive news including Nvidia's $500 billion AI infrastructure partnership
• Markets are focused on July CPI data due Wednesday and PPI on Thursday to gauge Fed's next move, with uncertainty heightened by last week's weak jobs report and elevated oil prices threatening inflation control

Market Summary: August 11, 2026

Market Performance:

U.S. equities closed lower on Tuesday, with the Dow Jones falling 188 points (-0.35%) to 53,787.57, the S&P 500 declining 0.33% to 7,727.79, and the Nasdaq dropping 0.60% to 26,445.00.

Key Driver – Geopolitical Tensions:

Oil prices surged on renewed Strait of Hormuz concerns after Iran reiterated the waterway would remain closed until U.S. conditions are met. West Texas Intermediate crude rose 1.6% to $83.48 per barrel, while Brent crude gained 1.6% to $89.20. While Pakistan's Defence Minister suggested progress toward a U.S.-Iran peace deal, uncertainty persists, elevating inflation concerns and complicating Federal Reserve policy decisions.

Sector Impact:

Technology stocks led the decline, with Alphabet down approximately 3% on restructuring concerns, while Nvidia, Apple, and Amazon also traded lower despite Nvidia announcing a $500+ billion AI infrastructure partnership with six major asset managers. The energy sector outperformed as oil prices climbed. Alternative asset managers Apollo Global Management and Blackstone advanced on AI financing initiatives with Nvidia.

Upcoming Catalysts:

Markets are focused on critical inflation data: July Consumer Price Index (CPI) due Wednesday and Producer Price Index (PPI) Thursday. These reports will shape expectations for the Fed's September policy decision, particularly following last week's weak jobs data that raised concerns about economic momentum.

Market Outlook:

Investors remain cautious as geopolitical risks, energy volatility, and higher oil prices threaten to sustain inflationary pressures. The Fed faces a challenging balancing act between slowing growth and persistent inflation, with markets divided on potential rate actions ahead.