US Equity Markets Plunge Amid Surging Oil Prices and Inflation Fears

The US equity markets experienced a turbulent week from September 7 to 11, 2026, with all three major indices closing lower due to surging crude oil prices, multi-year high Treasury yields, and hotter-than-expected inflation data. The Dow Jones Industrial Average posted its largest weekly decline since March, while the S&P 500 and Nasdaq Composite ended a four-day losing streak with a strong Friday rally that pared the week's losses but was insufficient to secure gains.

The dominant narrative of the week was the escalation in US-Iran military tensions, which pushed Brent crude above $109 per barrel, driving energy costs higher and reinforcing expectations for a Federal Reserve rate hike at the 15-16 September policy meeting. The Dow Jones Industrial Average declined 1.5% for the week, its steepest weekly loss since March, after opening at approximately 52,854.00 on Tuesday, 8 September.

The index touched a weekly intraday high of approximately 52,854.00 on Tuesday and a weekly low of 51,805.00 during Thursday's steep sell-off, when it fell through its 50-day moving average. On Friday, the Dow rebounded 531 points, or 1.0%, during the session as markets cheered the latest CPI inflation report, but the rally was insufficient to reverse the week's accumulated losses.