The Major Markets saw widespread pullback last week as rising oil prices, higher Treasury yields, and growing expectations for a Fed rate hike pressured stocks.

The Nasdaq declined 0.7%, the S&P 500 fell 0.8%, and the Dow dropped 1.6%. Small caps were hit even harder still, with the Russell 2000 down 2.4%.

Oil was a major driver last week. WTI crude jumped over 9% higher, finishing just above $100 a barrel as escalating tensions between the U.S. and Iran raised concerns about energy supplies and the Strait of Hormuz. The geopolitical situation saw a new dynamic when Saudi Arabia shut down its East-West pipeline following attacks. This had been a measure to bypass the Strait of Hormuz. Now, both sides of Saudi Arabia have been brought into conflict.

Not surprisingly, Energy was one of just two sectors to finish the week higher.

Just as the week before, the directional movement of Crude Oil prices was inverse to that of the S&P 500. Friday’s rebound helped stocks recover some losses.

Treasury yields also climbed sharply. The 10-year yield rose 20 basis points to nearly 5%.

Finally, in economic news, both the Consumer Price index and the Producer Price Index came in effectively at expectation. This inflation data pushed the market-implied probability of a 25-basis-point Fed hike above 90%. The big question this week will be if the Fed also comes in along expectations following Wednesday’s meeting and whether  or not policymakers signal where interest rates go from here.

https://www.cnn.com/2026/09/14/economy/saudi-east-west-pipeline-shut-oil-market