Volatile week for stocks

Stocks pulled back for most of the week as renewed activity in the US-Iran conflict pushed oil prices higher and reignited fears of further Federal Reserve tightening. However, a dovish signal from a Fed governor sparked a sharp Thursday rally to close the week.

Stocks
Stocks opened Monday, the final trading day of August, in the red as new developments in the US-Iran conflict sent oil prices sharply higher and pushed September rate hike odds above 60%. Energy was the only S&P 500 sector to finish in positive territory on the day, while the broader market slipped. However, all 3 major indexes wrapped up August in positive territory, with the Nasdaq gaining more than 3.9% for the month, the S&P 500 up about 2.6%. Tuesday brought more of the same. Another escalation in the US-Iran conflict sent oil and yields higher, and investors grew increasingly worried the Fed would tighten policy at its September 15-16 meeting. Nevertheless, stocks managed to snap the 3-session losing streak on Wednesday, as relatively stable oil prices and gains in big-cap technology names lifted all 3 major indexes. The week's best session came Thursday, when Fed Governor Christopher Waller said he would be inclined to support holding interest rates steady at the September meeting as long as upcoming inflation data does not produce surprises. Indexes bounced following the comment. On Friday, however, indexes fell after a stronger-than-expected jobs report increased expectations that the Fed might hike interest rates. Overall, communications, energy minerals, and electronic technology were the strongest performers during the week, while non-energy minerals, transportation, and consumer services lagged.

Bonds
Treasury yields entered the week elevated, riding the momentum from Fed Chair Kevin Warsh's hawkish Jackson Hole remarks the prior Friday, which had pushed September rate hike odds from roughly 38% to above 60%. On Monday and Tuesday, yields climbed further as the resumption of the US-Iran conflict drove oil prices higher and stoked fresh inflation concerns. They then stabilized on Wednesday as oil prices steadied and equity markets bounced. The turning point came Thursday, when Governor Waller's comments and a strong yen rally against the dollar added downward pressure on US yields. But on Friday, yield spiked going into the weekend on a stronger-than-expected jobs report.

Oil
Oil prices surged to kick off the week after new escalations in the US-Iran conflict. By Wednesday, however, prices had pulled back modestly as investors assessed whether the exchange would escalate further. Thursday saw prices ease somewhat, as President Trump stated the latest escalations would be short-lived. Overall, Brent rose more than 4% for the month of August and remains up more than 42% year over year, with the conflict's impact on Strait of Hormuz shipping continuing to be the dominant driver of the energy market.

Gold
Gold entered the week carrying over losses from Fed Chair Warsh's hawkish Jackson Hole speech the prior Friday, which had triggered the metal's sharpest single-day decline since June. The higher rate hike odds that Warsh's remarks introduced weighed heavily on price throughout Monday and Tuesday, as a stronger dollar and elevated real yields increased the opportunity cost of holding the non-yielding metal. Gold then slipped to near its lowest level since August 19 by midweek before finding modest relief Thursday, when Governor Waller's more patient tone on rates caused the dollar to weaken and yields to pull back. But on Friday, prices fell following the release of a stronger-than-expected jobs report.

Crypto
Bitcoin opened the week near $77,700, under pressure from Governor Warsh's hawkish Jackson Hole remarks and the renewed US-Iran escalations that sent oil and yields higher heading into Tuesday. The combination of elevated rate hike odds and renewed geopolitical risk weighed on risk assets broadly, pushing BTC briefly below $77,000 in early Monday trading before recovering toward $78,000-$79,000 as the week progressed. The next catalyst arrived Thursday, when Governor Waller's comments sent yields lower and gave risk assets a meaningful bid. But on Friday, prices fell following the release of a sronger-than-expected jobs report. Ethereum followed in kind. The Senate's first procedural vote on the CLARITY Act is scheduled for September 15, the same day as the FOMC meeting, making the coming week a critical one for both the rate-sensitive and regulatory outlook for crypto.

Source: Yahoo Finance, as of September 4, 2026.

KEY DATA FOR THE WEEK OF SEPTEMBER 7

The August CPI report, due September 11, will be the central event for markets as investors look for confirmation that inflation is cooling before the September 15-16 FOMC rate decision. 

Source: Fidelity.com, as of September 4, 2026.