Today’s Top Stories: Oracle Surges on AI Boom While Inflation and Rising Yields Rattle Markets

TLDR

• U.S. inflation rose 0.4% month over month and 3.4% year over year, pushing Fed rate hike odds to 85%
• Brent crude briefly hit nearly $110 a barrel before pulling back more than 3%
• Oracle reported 30% revenue growth and a $664 billion AI cloud backlog
• Adobe beat earnings but fell on soft guidance and ongoing AI competition fears
• The 10-year Treasury yield nearly touched 5%, a level that could pull money away from stocks

Inflation Data Pushes Fed Rate Hike Odds to 85%

U.S. inflation stayed elevated in August. The Consumer Price Index rose 0.4% month over month and 3.4% year over year.

Core inflation, which strips out food and energy, came in at 0.3% for the month. That was slightly above what economists had expected.

Following the report, futures markets moved to price in an 85% chance of a Fed rate hike at the September meeting.

Higher rates make borrowing more expensive for companies and put pressure on growth stock valuations.

Oil Briefly Hits $110 Before Pulling Back

Brent crude surged to just under $110 a barrel during the session, its highest level since May.

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