Daily News
Dow Notches Fourth Straight Drop as Oil Tops $100 on Iran War Escalation; Gold Holds Near $4,300; Nasdaq and S&P Slip
11 September 2026
Today in Brief
South Korean equities led declines across Asia-Pacific, with the Kospi down 2.8% and Japan's Nikkei 225 losing 2.6%, while Hong Kong's Hang Seng fell 1.4% and Australia's S&P/ASX 200 was 1% lower, as surging oil prices weighed on sentiment. U.S. stocks logged their fourth consecutive daily decline on Thursday — the Dow Jones Industrial Average closed down 316.56 points, or 0.6%, to 52,064.10, the S&P 500 fell 0.58% to 7,591.70, and the Nasdaq Composite slid 0.65% to 26,081.72 — after West Texas Intermediate crude topped $100 a barrel for the first time since May 19 as the U.S.-Iran conflict entered its seventh month. Gold traded near $4,300 an ounce on Friday after falling nearly 2% the previous session, with markets pricing in roughly a 71% probability of a Fed rate hike next week, while crude climbed toward $103 per barrel and was on track for its biggest weekly gain since mid-July.
In other news: President Trump told Fox News he has no regrets about starting the Iran war, saying he would "do exactly what I did" again; Treasury Secretary Scott Bessent said a "large bank" will be sanctioned on Monday as part of the administration's Iran strategy; Chinese President Xi Jinping is set to meet Indian Prime Minister Narendra Modi at the BRICS summit in India, their first bilateral meeting since 2019; U.S. producer prices rose 0.4% in August as the Iran war pushed energy costs higher; Microsoft is reportedly planning to triple its data-center capacity to 38 gigawatts by 2032; Oracle topped Wall Street revenue estimates on AI-driven cloud demand; Adobe beat Q3 targets but issued softer Q4 guidance; and Nestle's CEO said the Middle East conflict is driving up supplier costs and inflation.
South Korean equities led declines in Asia-Pacific
South Korean equities led declines in Asia-Pacific, with the Kospi index down 2.8%. Japan's Nikkei 225 lost 2.6%. Hong Kong's Hang Seng Index was down 1.4%, while the mainland's CSI 300 declined 0.9%. Australia's S&P/ASX 200 was 1% lower. On Thursday, stocks were weighed down by surging oil prices, as West Texas Intermediate crude futures jumped over $100 per barrel. Both U.S. oil and international Brent crude futures both posted their highest settlement prices since May 19 as the conflict between the U.S. and Iran continued into a seventh month.
Dow tumbles 300 points to notch 4-day drop as Treasury yields and oil prices surge
Stocks dropped Thursday after U.S. oil prices topped $100 a barrel, amid growing fears of higher inflation from a prolonged war in the Middle East. The Dow Jones Industrial Average closed down 316.56 points, or 0.6%, to 52,064.10. The S&P 500 fell 0.58% to end at 7,591.70, while the Nasdaq Composite slid 0.65% to 26,081.72. It was the fourth consecutive day of declines for the major averages. Higher oil prices continued to weigh on sentiment, as the war between the U.S. and Iran stretched into a seventh month. U.S. West Texas Intermediate closed at $102.48, up 6.7%. Brent crude futures gained 5.9% to settle at $107.63. It was the highest close since May 19 for both benchmarks. Since the Iran war began at the end of February, WTI is up 52.9%, and it's up by 78.5% year-to-date.
Gold traded near $4,300 an ounce on Friday after falling nearly 2% in the previous session
Gold traded near $4,300 an ounce on Friday after falling nearly 2% in the previous session, as investors braced for the US consumer price index report that could reinforce expectations for a Federal Reserve rate hike next week. Data released Thursday showed US producer prices accelerated in August as the Iran war pushed wholesale energy costs higher. Markets are now pricing in roughly a 71% probability of a 25-basis-point Fed rate increase next week, up from 61% before the PPI data. Gold also faced pressure from surging oil prices amid the escalating US-Iran conflict, fuelling concerns over rising inflation. Meanwhile, Treasury yields jumped following lower-than-expected purchases by the US Treasury Department during its first expanded buyback operation.
Crude oil climbed toward $103 per barrel on Friday
Crude oil climbed toward $103 per barrel on Friday and was on track to gain more than 12% for the week, marking its biggest weekly increase since mid-July as the escalating conflict between the US and Iran fuelled concerns over prolonged disruptions to global energy supplies. Top US officials reportedly warned President Donald Trump that the war could continue through the remainder of his term, which ends in January 2029. Meanwhile, Iranian leaders are reportedly determined to continue fighting despite mounting economic costs, viewing the conflict as an existential threat. They also claim that Tehran has managed to rebuild its missile capabilities and could intensify attacks on US and Gulf assets if Washington escalates its own strikes.
Trump says he has no regrets about starting the Iran war as U.S. dials up economic pressure
U.S. President Donald Trump said he has no regrets about starting the Iran war and added that "If I had it to do again, I would do exactly what I did." Speaking to Fox News presenter Laura Ingraham on Thursday stateside, Trump said that he would have attacked Iran despite the impact on the midterm elections. "If we hadn't done Iran, you would be cruising to midterms victory right now," Ingraham told Trump, to which Trump replied "supposing we were cruising, and all of a sudden Iran has a nuclear weapon. They would use it." He added that if Iran had a nuclear weapon, the Islamic Republic would "wipe out" Israel and the Middle East, and start hitting U.S. cities.
Bessent says 'a large bank' will be sanctioned on Monday as part of Iran strategy
"A large bank" will be sanctioned by the U.S. next week, U.S. Treasury Secretary Scott Bessent said Thursday. "We're going to do it on Monday because we want to honor the memory of our fallen citizens on 9/11. But watch this space on Monday," Bessent said during an appearance on "Real America's Voice," without naming the financial institution nor the country. The announcement come after Trump's administration sanctioned the Dubai branches of the second largest bank in Egypt which is believed to have given Iranians $1.8 billion of funds. According to Bessent, Turkey's largest bank "that had been giving to the Iranians" will also be closed. Since the Mideast conflict began in February, the U.S. implemented a series of economic measures against Iran, including sanctions.
Modi and Xi are set to meet at BRICS with trade and border issues in spotlight
When the BRICS summit gets underway tomorrow in India, the meeting between Chinese President Xi Jinping and Indian Prime Minister Narendra Modi will be among the most keenly watched events. Beijing confirmed Xi's attendance at the event on Thursday, marking the Chinese president's first visit to India since 2019, and since ties deteriorated following deadly border clashes in 2020. "This is a really crucial moment," Vrinda Sahai, research analyst in the Security Studies Program at Carnegie India, told CNBC. "It's a great opportunity to use the BRICS summit as an excuse to have a really substantive bilateral meeting."
US producer prices increase as expected in August
U.S. producer prices increased in line with expectations in August amid a rebound in the cost of energy products. The Producer Price Index for final demand rose 0.4% last month after an upwardly revised 0.1% gain in July, the Labor Department's Bureau of Labor Statistics said on Thursday. Economists polled by Reuters had forecast the PPI increasing 0.4% after a previously unchanged reading in July. In the 12 months through August, the PPI advanced 5.4%. That followed a 4.8% rise in July. Energy prices increased 4.2% over the month as renewed hostilities between the United States and Iran boosted oil prices. Energy prices had declined for two straight months. Wholesale food prices edged up 0.1% after dropping 0.9% in July. Producer goods prices surged 1.1%. They rose 0.4% excluding the volatile food and energy components. Services prices nudged up 0.1%, though some components showed strong gains.
Microsoft plans 38 gigawatts of data center capacity by 2032, Bloomberg News reports
Microsoft plans to build out its data-center capacity to about 38 gigawatts by 2032, more than triple its current footprint, Bloomberg News reported on Thursday, citing people familiar with the matter. Here are some details: According to the report only about 2 gigawatts of the company's current 12-gigawatt capacity is centered on AI-specific chips, a share expected to grow to about a third of the 38 gigawatts it plans to have online. Microsoft did not immediately respond to a Reuters request for comment. Technology companies have been pouring billions of dollars into data centers to power generative AI services such as ChatGPT and Copilot, which require huge amounts of computing power.
Oracle's quarterly revenue beats estimates as AI boom drives cloud demand
Oracle topped Wall Street expectations for first-quarter revenue on Thursday and lifted its annual profit forecast, boosted by strong demand for its cloud computing services from surging enterprise spending on AI. Shares of the company, which have fallen more than 20% this year, rose nearly 5.5% in extended trading. The upbeat report indicates that Oracle's heavy investment in data centers is bearing fruit, helping it secure more enterprise contracts. Oracle's stock has taken a beating this year on growing investor concerns over soaring capital expenditure that has pressured its free cash flow. In July, S&P Global downgraded Oracle's credit rating citing weak cash flow and rising business risk. Still, analysts expect Oracle's revenue to accelerate sharply as it expands its data center footprint. The company said it brought 850 megawatts of capacity online in the June-August quarter.
Adobe beats Q3 targets, but soft Q4 sales guidance triggers dip
Adobe Inc. topped Wall Street's third-quarter estimates on robust subscription growth, though shares edged down 2.5% after the software maker delivered a fourth-quarter revenue forecast that fell just short of expectations. The software company posted adjusted earnings per share of $6.13 for the third quarter, surpassing the analyst consensus of $6.07. Revenue reached $6.76 billion, beating the $6.69 billion estimate and representing 13% growth YoY. For the fourth quarter, Adobe issued revenue guidance of $6.80 billion to $6.85 billion, with a midpoint of $6.825 billion that falls short of the $6.85 billion analyst consensus. The company expects fourth quarter adjusted EPS of $6.30 to $6.35, with a midpoint of $6.325 billion matching the $6.30 consensus.
Nestle CEO says Middle East conflict driving inflation, higher supplier costs
Nestle is raising prices, reformulating products and cutting items consumers are unwilling to pay more for as it tackles the effects of higher energy, freight and raw material costs following the conflict in the Middle East, CEO Philipp Navratil told Reuters. While sales of the world's biggest packaged-food maker have not been greatly impacted by the six-month-old Iran war, Navratil said the conflict was contributing to inflationary pressures faced by suppliers. "Each and every supplier of ours will have some increase in costs," Navratil told Reuters in an interview on Wednesday. "Some of them will come to us and we will have to mitigate them (the costs), making sure consumers come along if we have to increase prices." The comments underscore how the war's disruption of energy and commodity markets is filtering through global supply chains to the food aisle, even for companies with minimal direct exposure to the region.
Oil prices fell for the fourth consecutive session on Wednesday, as investors assessed trade developments including a U.S. tariff deal with Japan ahead of a U.S. stocks data announcement. Brent crude futures fell 8 cents to close at $68.51 a barrel. U.S. West Texas Intermediate crude futures lost 6 cents to settle at $65.25 per barrel. Both benchmarks lost about 1% in the previous session after the EU said it was considering countermeasures against U.S. tariffs. President Donald Trump said on Tuesday that the U.S. and Japan had struck a trade deal that included a 15% tariff on U.S. imports from Japan. In another bullish sign for the crude market, the U.S. energy secretary said on Tuesday that the U.S. would consider sanctioning Russian oil to end the war in Ukraine.
The S&P 500 and Nasdaq notched record high closes on Wednesday, lifted by Nvidia and GE Vernova, as the European Union and the U.S. appeared headed toward a trade deal similar to an agreement President Donald Trump struck with Japan. The White House's deal with the European Union would include a broad tariff of 15% on EU goods imported into the U.S., two diplomats said. The rate, which could also extend to cars, would mirror the framework agreement the U.S. has struck with Japan.
Gold prices extended losses on Wednesday following reports that the U.S. and European Union were closing in on a 15% tariff deal, dampening safe-haven demand, while silver earlier surged to its highest level since September 2011. Spot gold was down 1.3% at $3,387.67 per ounce after hitting its highest point since June 16 earlier in the day. U.S. gold futures slipped 1.4% to $3,396.9. The European Union and the United States are moving toward a trade deal that would impose a broad 15% tariff on EU goods imported into the U.S., two diplomats said on Wednesday. This comes as U.S. President Donald Trump also reached a trade deal with Japan on the same day to lower tariffs on auto imports, offering a welcome sign of progress in his broader tariff negotiations on multiple fronts.
Treasury yields moved slightly higher on Wednesday after U.S. Treasury Secretary Scott Bessent eased market jitters over instability at the top of the Federal Reserve, turning attention back to the interest rate outlook. The benchmark 10-year Treasury yield was trading 5 basis points higher at 4.386%, while the 2-year yield rose more than 5 basis points to 3.884%. The 30-year yield added 4 basis points to 4.943%. Bessent on Tuesday said that Fed Chair Jerome Powell does not need to resign, but reiterated calls for a review of the institution. Powell declined to give more details on the outlook during Fed conference remarks on Tuesday, instead focusing on banking regulation.
U.S. President Donald Trump will visit the Federal Reserve on Thursday, the White House said, escalating his pressure campaign against Chairman Jerome Powell. This is the first time in nearly two decades that an American president will be making an official trip to the central bank. American presidents have traditionally respected the independence of the central bank, which is insulated both in law and in practice from the political whims of elected officials. Trump’s visit is a remarkable symbolic move on that independence, bringing his drumbeat of criticism over Powell’s refusal to lower interest rates right to the chairman’s doorstep. The White House released a schedule on Wednesday that said Trump would visit the Federal Reserve at 4:00 p.m. ET on Thursday.
UK Prime Minister Sir Keir Starmer and his Indian counterpart Narendra Modi will on Thursday sign a trade deal between the two countries that London believes will boost British exports to India by 60 per cent by 2040. The agreement, first announced in May, means tariffs on more than 90 per cent of UK exports to India will be cut, with the largest reductions on cosmetics, clothes and food and drink — albeit phased in over a decade. Ministers said the deal was expected to eventually benefit the UK economy by £4.8bn a year. The tariff reductions include immediate cuts on UK exports of salmon, lamb and machinery, and gradual liberalisation of trade in chocolates, cosmetics and auto parts. The biggest winners for UK industry are whisky and gin producers, which will see tariffs halve to 75 per cent immediately and then fall to 40 per cent by the 10th year of the deal. India has also agreed a historic cut in automobile import duties — from more than 100 per cent to just 10 per cent — although that has been capped by quotas that will be announced on Thursday.
European Commission President Ursula von der Leyen has warned Chinese leader Xi Jinping that relations were at “an inflection point” as the sides held a summit fraught by tensions over trade and the war in Ukraine. Von der Leyen and European Council President António Costa opened a one-day meeting in Beijing by demanding “real solutions” to long-standing complaints including China’s wide trade surplus with the bloc and its backing of Moscow. Xi said that relations were at a “critical juncture” and that the EU and China should “make the right strategic choices” amid “a changing and turbulent world”. Von der Leyen and Costa will hold talks and a working lunch with Xi on Thursday, followed by a meeting and banquet with premier Li Qiang, China’s number two official. Von der Leyen will hold a press conference later on Thursday. The summit, which will mark half a century of EU-China relations, comes as hopes for a reset have been overshadowed by thorny issues including trade, Beijing’s export controls on critical minerals and the Russia-Ukraine war
South Korea avoided a technical recession as its economy expanded by 0.6% from the previous quarter, beating expectations, according to advance estimates. This was higher than the 0.5% expected by economists polled by Reuters, and a reversal from the 0.2% contraction seen in the first quarter. Data from the Bank of Korea showed exports of both goods and services grew strongly in the second quarter, rising 4.2% quarter over quarter as shipments of semiconductors, petroleum products, and chemical products increased.
Tesla reported a 16% decline in automotive revenue as sales fell for a second straight quarter and again trailed analysts’ estimates. Tesla shares dipped by more than 4% after hours, following remarks by CEO Elon Musk and finance chief Vaibhav Taneja about higher tariff costs and the expiration of federal electric vehicle tax credits. “We probably could have a few rough quarters. I am not saying that we will, but we could,” Musk said. Auto revenue for Tesla came in at $16.7 billion in the second quarter, down from $19.9 billion in the same quarter last year. Of that sum, revenue from sales of auto regulatory credits declined to $439 million from $890 million a year earlier. The company’s shares were down about 18% for the year as of Wednesday’s close, making it the worst performance among tech’s Mega caps.
Alphabet reported second-quarter results on Wednesday that beat on revenue and earnings, but the company said it would raise its capital investments by $10 billion in 2025. The company’s overall revenue grew 14% year over year, higher than the 10.9% Wall Street expected, but Alphabet is going to spend more on artificial intelligence in 2025 than it anticipated. In February, the company said it expected to invest $75 billion in capital expenditures in 2025 as it continues to expand on its AI strategy. That was already above the $58.84 billion Wall Street expected at the time. The company increased that figure on Wednesday to $85 billion, saying it was raising it due to “strong and growing demand for our Cloud products and services.” Alphabet’s net income increased to $28.20 billion, up nearly 20% from the previous year.
IBM’s revenue increased nearly 8% year over year in the quarter, according to a statement. Growth in the first quarter was below 1%. Net income, which includes costs related to acquisitions, rose to $2.19 billion, or $2.31 per share, from $1.83 billion, or $1.96 per share, a year ago. “While not a major factor overall, geopolitical tensions are prompting a few clients to move cautiously,” CEO Arvind Krishna said on a conference call with analysts. “U.S. federal spending was also somewhat constrained in the first half, but we do not expect it to create long term headwinds.” Software revenue climbed about 10% to $7.39 billion, falling short of the $7.43 billion consensus among analysts surveyed by StreetAccount. Hybrid cloud revenue, including Red Hat, showed 16% growth. The software unit’s gross margin of 83.9% was barely narrower than StreetAccount’s 84.0% consensus.
India’s JSW Group plans to launch its own electric vehicle brand by 2027 with technical and component support from China’s Chery Automobile Co. The agreement includes a one-time technology transfer fee and recurring royalties to Chery, though no equity partnership is involved, in line with India’s restrictions on Chinese investment in sensitive sectors. If confirmed, the deal would mark the first significant transfer of passenger vehicle technology from a Chinese automaker to an Indian firm since the 2020 border clashes. Billionaire Sajjan Jindal’s JSW is reviewing models from Chery’s iCar range and plans to manufacture EVs in Maharashtra from 2027. JSW intends to expand its EV offerings to include electric trucks and buses from 2026.