Oil and Yields Squeeze Stocks for Third Straight Day
Wall Street braces for this morning’s PPI report and Friday’s CPI, the last inflation reads before the Fed decides next week whether to hold or hike.
Market Snapshot
All figures are opening levels as of this morning, September 10.
Stocks opened lower for a third straight session as climbing oil and rising Treasury yields, not earnings, set the tone.
The dollar firmed, gold and silver both pulled back, and the VIX ticked up toward 16.7.
Oil stayed the pressure point, with WTI up around 1.34 percent to near $97.34 and Brent holding above $102.
Company news outweighed the macro gloom for a few names. Meta jumped around 6.55 percent after JPMorgan upgraded it on recent AI product launches, Apple held roughly flat the day after unveiling its folding iPhone, and Spring-based Exxon Mobil rose around 2.22 percent as crude near $97 lifted energy names.
Main Story
The selloff is not about growth fears, it is about the cost of money and a barrel of oil climbing at the same time.
- Stocks fell for a third straight day as WTI held near $97 and the 10-year Treasury yield pushed to around 4.84 percent, its highest since October 2023, after the Treasury said it would triple its buyback of longer-dated debt to $6 billion.
- The mainstream read is a classic inflation squeeze, where dearer energy plus higher borrowing costs compress valuations, with Capital.com’s Kyle Rodda calling this week’s PPI and CPI the make-or-break for whether the Fed holds or hikes next week.
- What the tape may be missing is politics, as President Trump said oil likely will not fall until after the midterms, which keeps the energy premium, and the inflation it feeds, in place for longer.
Chart of the Day
The 10-year yield has climbed steadily from a summer base near 4.36 percent to around 4.84 percent, the highest in nearly two years.
It just cleared the 4.80 percent level that marked the January 2025 high, leaving the 5.00 percent handle as the line traders are watching.
With price well above its rising trend, the burden is on bond buyers to prove this run is done.
Technical Trading
A few levels across the tape, drawn from Investing.com, Barchart, and StoneX:
- The 10-year yield sits around 4.84 percent, above the pivotal 4.80 percent January 2025 high, with psychological resistance at 5.00 percent that a Bloomberg survey majority expects it to test before year-end.
- WTI faces resistance at $98.50 and then the $100 to $100.30 zone, with first support near $91.50 and the 38.2 percent retracement around $90.98; the 100-day average has crossed above the 200-day.
- Gold is defending critical support at $4,400, the late-August swing low and 38.2 percent retracement of the summer rally, while silver holds above $66 with support at $65 and resistance stacked toward $70.87.
Global News
- WTI held near $97 and Brent stayed above $102 as the US-Iran conflict kept a war premium on Gulf supply.
- The 10-year Treasury yield hit around 4.84 percent, its highest since October 2023, after the Treasury tripled its longer-dated buyback operation to $6 billion.
- August PPI is due this morning, with economists expecting a 0.3 percent monthly rise and 5.3 percent year over year, ahead of Friday’s CPI.
- Macy’s beat earnings and raised its full-year outlook on tariff refunds, though shares slipped premarket in the broad risk-off tone.
Texas News
Spring-based Exxon Mobil rose around 2.22 percent as crude near $97 extended a tailwind for Permian producers running well above breakeven.
President Trump traveled to Dallas for the midterm Republican convention, where he tied any relief in oil prices to the November elections.
Looking Ahead
Thursday, September 10: August PPI lands at 8:30 a.m. ET alongside weekly jobless claims, the first of two inflation reads that will shape the Fed’s decision.
Friday, September 11: August CPI is the last major inflation print before the meeting, with consensus at a 0.4 percent monthly gain.
Wednesday, September 16: The Fed announces its rate decision, where a hold remains the base case but a hike is a live risk if inflation runs hot.
The Y’all Street Podcast
Tarek Saab sits down with investor and board advisor Michael Gentile for a look at where he sees the market’s biggest opportunities hiding. He breaks down why gold could be entering a new era, what rising debt and de-dollarization could mean for the U.S. dollar, and why junior mining companies may be dramatically undervalued even at record gold prices. Michael also shares how he hunts for 20 to 50x returns, what he learned from Warren Buffett, and why emotional intelligence matters more than intelligence when markets turn against you.
Prices from Yahoo Finance, CNBC and Fortune. Technical levels from Investing.com and FXStreet. News from Reuters, Al Jazeera and CNBC.
For informational purposes only. Not investment advice. Prices are indicative opening levels and may differ from your broker.
