Market Open: Stocks Lower, Oil Prices Jump, OpenAI's ad business soars • 8/31/26
Speakers
Jill Schneider
— Anchor/Reporter, CNBC Business News Update
Greg Case
— President and CEO, Aon PLC
Summary
CNBC's Jill Schneider reports a risk-off market open on the last trading day of the month as resumed US-Iran combat pressures equities and lifts oil and energy stocks. PG&E drops sharply after California blocked a wildfire liability cap, prompting analyst downgrades. OpenAI touts a $1 billion advertising run rate ahead of a potential IPO. AON slips on its USI acquisition while its CEO argues the deal expands middle-market opportunity; Pinterest falls on CFO exit.
- Stocks open lower on the last trading day of the month after US-Iran combat resumes.
- Oil prices jump and energy stocks including Halliburton, Chevron, Valero, Occidental, and Exxon trade higher.
- PG&E drops 16% after California lawmakers block a wildfire liability cap and analysts downgrade the stock.
- OpenAI reports a $1 billion annualized advertising revenue run rate ahead of an expected IPO.
- AON announces a $17 billion acquisition of USI Insurance Services from KKR.
- AON CEO Greg Case highlights middle-market growth potential from the USI deal.
- Pinterest falls more than 3% after revealing its CFO will leave in October.
Ideas
US-Iran conflict boosts oil and energy stocks.
Resumed combat between the US and Iran pushed oil prices higher in early trading, and the jump in crude is lifting energy stocks: Halliburton added 2.5%, Chevron rose 2%, Valero Energy and Occidental Petroleum added 2% each, and Exxon Mobil rose more than 1.5%.
California liability cap failure hits PG&E.
PG&E shares sank 16% after California lawmakers blocked a proposal that would have capped the amount individuals could seek from utilities whose equipment ignited wildfires; several Wall Street analysts downgraded the stock following the legislative result.
USI deal expands AON middle-market opportunity.
AON's $17 billion acquisition of USI Insurance Services from KKR brings AON's content and insights into the middle market, helping roughly 200,000 companies both defend their existing assets and grow, an opportunity Case says the company is excited about.
