U.S. stocks moved lower on Tuesday as another surge in oil prices and stubbornly high Treasury yields kept investors on edge ahead of the Federal Reserve’s closely watched rate decision. The Dow Jones Industrial Average fell about 0.7%, while the S&P 500 dropped roughly 0.4% and the Nasdaq Composite slid 0.6%, with technology stocks once again facing some of the heaviest pressure.
The cautious session comes as Brent crude surged back above $108 per barrel and WTI climbed toward $105 amid worsening supply disruptions in the Middle East. Meanwhile, the 10-year Treasury yield continued hovering around 5%, leaving investors caught between an energy-driven inflation threat, elevated borrowing costs, and uncertainty over what the Fed will signal Wednesday.
Market Movers:
- Radiant Logistics (RLGT) +17%: Shares surged after fiscal fourth-quarter revenue climbed 18.6% from a year ago, while adjusted net income increased 34.5% and adjusted EBITDA jumped 31.6%. The logistics company entered fiscal 2027 with no net debt and expanded its acquisition capacity after amending its $200 million revolving credit facility.
- Waystar (WAY) +10%: Shares rallied following a report that the healthcare software provider is exploring strategic alternatives, including a potential sale that could take it private. Waystar has reportedly hired Evercore to advise on the early-stage process after its market value fell to roughly $4.8 billion amid this year’s broader software selloff.
- Enova International (ENVA) -25%: Shares plunged after the financial services company withdrew regulatory applications tied to its proposed acquisition of Grasshopper Bancorp, citing a lack of clear regulatory standards for nonbanks seeking to become banks. Enova maintained its third-quarter and full-year growth forecasts and said it plans to accelerate share repurchases, with $349 million remaining under its authorization as of June 30.
- Dave & Buster’s Entertainment (PLAY) -15%: Shares sank after rising food, beverage, payroll and pre-opening costs contributed to an unexpected second-quarter loss of $0.27 per share, compared with expectations for a $0.19 profit. Revenue declined 2.4% from a year earlier and adjusted EBITDA dropped to $98.9 million from $129.8 million as weaker comparable sales and higher expenses squeezed profitability.
- Circle Internet Group (CRCL) -8%: Shares tumbled as fading hopes for comprehensive U.S. digital asset legislation triggered broad selling across crypto-linked stocks, while Bitcoin dropped nearly 3%. Coinbase, Strategy, Robinhood and several crypto miners also declined as investors reassessed the likelihood of near-term regulatory clarity for the industry.
- Sysco (SYY) -3%: Shares fell after the foodservice distributor priced roughly 12.34 million common shares at $81 apiece, raising approximately $1 billion in gross proceeds. Sysco plans to use the funds to help finance its pending acquisition of Jetro Restaurant Depot, with underwriters receiving an option to purchase up to another $150 million of shares.
Oil Surges as Middle East Supply Risks Grow
Energy markets remained one of Wall Street’s biggest concerns Tuesday. Brent crude climbed more than 3% to nearly $109 per barrel, while WTI traded above $103 as markets reacted to the shutdown of Saudi Arabia’s critical East-West pipeline and continued attacks on regional energy infrastructure.
The physical market is showing even greater stress. Dated Brent, which is used to price much of the world’s physical crude supply, reportedly traded above $130 per barrel as disruptions tightened available supplies. Saudi Arabia’s East-West pipeline has become particularly important because of its capacity to move as much as 7 million barrels per day away from the Persian Gulf.
Treasury Yields Stay Near 5% Ahead of the Fed
Bond markets are adding another layer of pressure. The 10-year Treasury yield remained near 5% after briefly reaching its highest intraday level since 2007 overnight, reflecting persistent concerns about inflation, government borrowing and the outlook for interest rates.
The Fed begins its two-day September meeting Tuesday, with markets overwhelmingly expecting policymakers to raise rates. Investors will be watching Wednesday’s updated dot plot and Fed Chair Kevin Warsh’s press conference closely for clues about whether policymakers see further tightening beyond September.
Crypto Slides as Regulatory Hopes Fade
Crypto added another pocket of weakness Tuesday, with Bitcoin falling roughly 3% ahead of a key Senate procedural vote on digital asset legislation. Expectations that the measure can advance have deteriorated as lawmakers struggle to secure the votes needed to overcome a filibuster. That uncertainty weighed heavily on Circle and other crypto-linked stocks. Investors had increasingly viewed regulatory clarity as a potential catalyst for wider institutional adoption, making the prospect of legislation being delayed beyond the midterm elections another setback for the sector.
Looking Ahead
Wednesday’s Fed decision is now firmly at the center of the market’s attention. A rate hike is widely expected, leaving investors more focused on the Fed’s projections and whether policymakers signal that stubborn inflation and soaring energy prices could require additional tightening. Oil may ultimately prove just as important. With Brent near $109, physical crude prices considerably higher and a major Saudi pipeline offline, any further deterioration in Middle East supplies could intensify inflation concerns, push Treasury yields higher and make an already difficult backdrop for stocks even more challenging.