Market Midday: Stocks Slide, Record Diesel Prices Keep Inflation in Focus • 9/4/26

Summary

US markets slid midday despite a strong August jobs report, with investors worried that hot labor data and record diesel prices will keep inflation elevated and increase odds of a Fed rate hike. Conference Board economist Dana Peterson argued oil price shocks will feed through supply chains and keep commodity prices high into next year. Anchor Jessica Edinger noted a hot CPI next week could trigger tightening that pressures stocks. Apple lagged while Nvidia and Micron rose.

• Major averages fell midday: Dow -310, S&P 500 -33, Nasdaq -110.
• August nonfarm payrolls came in at 162K, about triple expectations.
• Jobs strength may sharpen Fed inflation focus and rate hike risk.
• Diesel hit a record national average of $5.85, up almost 60% year over year.
• Dana Peterson sees oil price shocks keeping commodity prices elevated through next year.
• A hot August CPI could push the Fed to raise rates and send stocks lower.
• Next year's average pay raise of 3.2% is likely below the 3.4% inflation rate.