US Stocks Tumble Amid Interest Rate Expectations, Energy Costs Surge

Last week's employment data was weaker than expected, but this week saw expectations of interest rate hikes rebound after a rise in energy costs. PPI rose by 5.4% year-on-year, exceeding market forecasts. The energy sub-item increased by 4.2%, with diesel prices surging by 24.1%. Brent crude oil broke through the $100 threshold, reaching a new high.

The resulting surge in long-term yields pushed up interest rate expectations, causing the three major indices to fall for four consecutive days. Apple (AAPL) launched its first folding phone at a press conference, but closed in the red after the event. Intel (INTC) completed a $20 billion common stock issuance, while ExxonMobil (XOM) rose with oil prices.

NVIDIA (NVDA) fell 5.2% this week due to interest rate expectations, which drove up long-term yields and compressed valuations of high-growth stocks. Oracle's (ORCL) financial report showed a $664 billion RPO backlog, but the stock price still fell by 4.2%. Apple's iPhone Duo is estimated to contribute around $14 billion in revenue this quarter.