Dow opens 150 pts lower as oil tops $100 and Fed rate hike bets rise

• WTI crude rose above $100 and Brent topped $105 due to seven-month US-Iran conflict disrupting the Strait of Hormuz and Red Sea energy routes
• August PPI rose 5.4% year-over-year (above 5.3% expected), pushing Fed rate hike probability to 70% for next week's meeting; 2-year Treasury yields hit 4.490%, highest since 2024
• High-beta semiconductor stocks declined sharply with Intel down 2.29% and Micron falling 2.84% as rising yields pressure growth-sensitive tech stocks

Market Summary: Dow Opens Lower on Oil Surge and Rate Hike Concerns

Market Performance:

U.S. stocks opened sharply lower on September 10, 2026, with the Dow Jones falling 153 points, the S&P 500 down 0.56%, and the Nasdaq declining 0.81%. Markets extended a three-day losing streak amid mounting concerns over energy prices and monetary policy.

Oil Market Developments:

WTI crude surged above $100 per barrel while Brent crude climbed above $105, driven by a seven-month conflict between the U.S. and Iran disrupting critical supply routes through the Strait of Hormuz and Red Sea. The energy shock has reignited inflation fears and added pressure across equity markets.

Inflation and Fed Policy:

The Producer Price Index (PPI) rose 0.4% month-over-month in August, meeting expectations, but annual PPI came in at 5.4%—above the 5.3% consensus. This data increased Federal Reserve rate hike expectations to 70% (from 64%) for a 25-basis-point increase at next week's meeting, according to CME FedWatch Tool. Investors await Friday's Consumer Price Index for additional guidance on Fed policy.

Treasury Yields:

Two-year Treasury yields hit 4.490%, the highest since 2024, while 10-year yields climbed to 4.901%—the highest since 2023. Rising yields pressured equities by making bonds more attractive relative to stocks.

Sector Impact:

High-beta semiconductor stocks faced significant selling pressure, with Intel down 2.12% and Micron falling 2.86%. Macy's plunged 12.14% after maintaining its sales forecast and warning about unchanged gross margins.

Market Implications:

The combination of elevated oil prices, persistent inflation, and rising yields creates a challenging environment for risk assets, particularly growth and technology stocks sensitive to higher borrowing costs.