Markets price September rate hike as oil climbs, sending major indexes lower
Jul 23, 2026, 1:31 PM EDT1 sourcesAI-analyzed
Why it may matterVerify against the original reporting
Rising odds of a rate hike, higher energy costs, and a government data backdrop suggesting inflation persistence tend to compress equity multiples, particularly for growth/tech names, and increase macro-driven volatility as seen in the Dow and Nasdaq moves.
AI summary
What happened, with direct paths to the underlying reporting
Investors are pricing in a September Fed rate increase as oil climbs and energy costs rise. CME FedWatch shows roughly 82% odds of a Sept hike, with about a 38% chance of a 25bp move; Brent crude briefly hits $100 and U.S. gas averages $4/gal. Strong labor data and a tech selloff compound near-term equity pressure.
Fed funds futures show roughly 82% odds of September hike.
Brent crude hits $100; U.S. gas averages $4/gal.
Dow declines over 600 points; Nasdaq around -3%.
Initial jobless claims at 187k; fewest since 1969.
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