Stocks fall as inflation and oil prices push up yields, Fed hike odds reach 66%

  • Stocks fell as inflation concerns and oil prices lifted bond yields worldwide.
  • 66% was the approximate probability of a Sept. 16 Federal Reserve rate hike.
  • Amazon faced a lawsuit from the FTC and 22 state attorneys general over advertising practices.

U.S. and overseas stocks opened September lower as inflation worries and rising oil prices lifted bond yields, raising questions about whether the Federal Reserve will increase interest rates at its Sept. 16 meeting. The CME Group FedWatch tool put the probability of a hike at roughly 66%. Jim Cramer said data-center stocks, including Club holding Qnity, were being hit particularly hard, while software, pharmaceuticals, banks and energy stocks performed better. Higher borrowing costs could make data-center projects more expensive to finance, adding to political pressure around the industry. The meeting also covered Anthropic’s reported $35 billion cloud-computing agreement with Nvidia-backed Lambda, under which Nvidia would supply chips and hold the lease for a Texas data center. Baird analysts said the arrangement could help Nvidia preserve its lead among AI frontier labs, while Cramer defended Jensen Huang’s willingness to finance AI companies. Amazon shares fell nearly 2% after the Federal Trade Commission and 22 state attorneys general sued the company over alleged deceptive and unfair advertising practices. Amazon called the case misguided and denied consumer harm. The rapid-fire segment featured Medtronic, Robinhood and Howmet Aerospace.

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