Article published at 9:00 a.m. CT
JJ Kinahan is Senior Vice President, Head of Retail Expansion and Alternative Investment Products at Cboe Global Markets, Inc. (Cboe).
Key Takeaways:
- WTI crude trades higher
- Oil stocks get a boost
- Fed looks likely to raise rates in September
The markets are moving to the downside in early trading and crude oil prices are heading to the upside after tensions flared between the U.S. and Iran, prolonging the war that just entered its sixth month.
The Nasdaq Composite is lower by 0.24% while the S&P 500 Index is down 0.29% and the Dow Jones Industrial Average is off 0.24%. WTI Crude Oil prices are up 2.7%, trading again in the mid-$85 per barrel range.
Not surprisingly, oil stocks are on the rise as well. Chevron is up 2.3% and ExxonMobil shares are up 2.1%. Shell is advancing by 1.22% and BP is adding 1.7%.
Despite the early pullbacks, the three major indices are still expected to finish the month to the upside. Both the S&P 500 and the Dow tapped all-time highs in August. The Dow is expected to mark its fifth straight month higher while the S&P 500 and the Nasdaq look to snap the last two months of retraction.
Shares of PG&E are tumbling 16.5% after California gave a thumbs down to a plan to limit liabilities against utilities whose equipment kindled wildfires from lawsuits. In a statement Sunday, PG&E said the legislation “falls short of creating the long-term durability needed to attract affordable investment to support a safer, more reliable energy system and help keep costs down for customers.” Consolidated Edison shares are also getting nipped, down about 1%.
Federal Reserve Chair Kevin Warsh’s keynote speech in Jackson Hole on Friday lifted sentiment toward an interest rate hike at its September 16 meeting. He reiterated the Fed’s 2% inflation goal: “We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do.” Inflation now sits at 3.4%. The CME’s FedWatch tool is registering a 64% likelihood the Fed will hike interest rates to a range of 3.75% to 4.0% at its September 16 meeting, rising from 35% ahead of Warsh’s speech.
Meanwhile, the Cboe Volatility Index® (VIX® Index) is up better than 6.3%, but still at a comfortable level of 15.35.
I'll be gone the rest of the week, but there are earnings to keep a watch on: Palo Alto Networks and Dell report tomorrow, and Broadcom and Snowflake open their books on Wednesday.
Happy Trading and Happy Labor Day!
©2026 Cboe Exchange, Inc. All rights reserved.
The information provided is for general education and information purposes only. No statement provided should be construed as a recommendation to buy or sell a security, future, financial instrument, investment fund, or other investment product (collectively, a “financial product”), or to provide investment advice.
