US stock indexes decline for the week amid inflation concerns
US stock indexes ended the shortened holiday week lower, despite nearly 1% gains on Friday. According to CNBC Top News, the Dow Jones Industrial Average lost 1.6% over the week, the S&P 500 fell 0.8%, and the Nasdaq declined 0.7%. Markets were pressured by rising oil prices and US government bond yields, which intensified concerns about inflation and the Federal Reserve’s next steps.
Oil and bonds
The price of West Texas Intermediate crude exceeded $100 per barrel on Thursday for the first time in nearly four months amid escalating tensions between the United States and Iran. Although quotes declined on Friday, WTI gained more than 9% over the week.
The yield on 10-year US Treasury bonds rose above 4.95% on Thursday, reaching its highest level since October 2023. CNBC noted that rising energy costs sparked market concerns that high inflation could prompt the Fed to raise rates at its next meeting.
Inflation and Fed expectations
The producer price index rose 0.4% month-on-month, in line with expectations. Consumer inflation was also 0.4% for the month and 3.4% year-on-year. The core consumer price index, which excludes food and energy, rose 0.3% for the month, slightly above expectations.
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According to the CME FedWatch tool, the market probability of a Fed rate hike in September rose to 87%, compared with 58% a week earlier. The regulator’s meeting is scheduled for September 15–16.
Meta and Apple shares
Meta Platforms shares gained 5% over the week. CNBC highlighted the release of the Muse Spark 1.3 artificial intelligence model and the launch of the Muse personal AI agent, integrated with Facebook, Instagram and WhatsApp.
Apple shares rose nearly 4% over the week after the presentation of the foldable iPhone Duo with a starting price of $1,999, as well as the new iPhone 18 Pro and Pro Max. Apple’s new CEO John Ternus also presented the iPhone as an “intelligent personal hub,” while the updated Siri, according to CNBC, will be able to work with more than 300,000 apps.
