US stocks close lower for the third consecutive day as oil and yields riseUSD/JPY and the "I am the House now" tradeGold Technicals: Buyers and sellers battle between key support and resistance as the market awaits the next shoveTrump says oil prices won't come down until after the midtermsUS sells 10-year notes at 4.834% vs 4.849% WIThe endgame for the AI bubble is taking an unexpected twistEuropean indices: Prices of major European indices move lower as Brent passes $100US Treasury announces $6 billion buyback, less than expectedThe oil price breakout is confirming and that's a big problemKickstart the NA session: A technical look at the EURUSD, USDJPY and GBPUSD to start the dayinvestingLive European markets wrap: Brent crude hits $100, equities fallOil was the dominant market story today, with Brent crude moving back above the psychologically important $100 level.Brent crude is trading at $101.60, up $3.68 or 3.76%. WTI crude oil is up $3.63 or 3.90% at $96.70.President Trump acknowledged that getting oil prices lower would “take a little longer,” but said they would come tumbling down shortly after the midterm elections. He also predicted that gasoline prices would eventually fall below $2 per gallon. That comes after gasoline prices reached a Labor Day weekend record above $4.Republicans involved in close election races probably will not want to hear that relief may not come until after the election.For oil traders, the comments can also be interpreted as a bullish signal. The administration does not appear to be preparing an immediate policy change—or another quick TACO—that would remove the geopolitical risk premium from oil before November.Trump also made the following comments:On Iran, Trump said, “We’re not looking for a deal.”He added that negotiations could still happen.Trump said he is pursuing objectives that extend beyond a nuclear agreement.He said he believes the Ukraine war will end immediately after the election.Trump said a bilateral meeting with Russian President Vladimir Putin remains possible.He described his latest conversation with Putin as “great” and said Putin wants a deal.Higher oil is an inflation problemHigher oil prices for longer are not good news for inflation—at least in the short term.Energy costs affect more than gasoline prices. They raise transportation, shipping, manufacturing and agricultural costs. Businesses then must decide whether to absorb those costs through lower margins or pass them on to consumers.If elevated oil prices eventually choke off consumer spending and slow the economy, that could ultimately lead to lower yields. Today, however, the inflation concerns won that battle.U.S. Treasury yields moved higher across the curve:2-year yield: 4.4316%, up 3.4 basis points5-year yield: 4.5284%, up 4.2 basis points10-year yield: 4.8427%, up 3.9 basis points30-year yield: 5.2899%, up 2.6 basis pointsThe 10-year yield traded at its highest level since November 2023.U.S. stocks close lowerHigher oil prices and rising yields helped pressure the major U.S. stock indices. The small-cap Russell 2000 was the weakest performer, falling 1.32%.The final numbers are showing:Dow Industrial Average fell 405.04 points, or 0.77%, to 52,386.25S&P 500 fell 37.16 points, or 0.48%, to 7,636.37Nasdaq Composite fell 168.07 points, or 0.64%, to 26,253.34Russell 2000 fell 38.97 points, or 1.32%, to 2,921.23Nasdaq 100 fell 86.15 points, or 0.29%, to 29,421.55The combination of higher oil and higher yields presents a two-sided concern for equities. Higher energy costs can squeeze corporate margins and consumer spending, while higher yields raise borrowing costs and reduce the relative attractiveness of stocks.USD mostly lower, but moves remain modestThe USD was mostly lower, although the changes were relatively modest and the price action remained choppy.The USD fell against the EUR (-0.08%), JPY (-0.28%), GBP (-0.06%), and the AUD (-0.04%) and rose vs the CHF (+0.07%), CAD (+0.17%) and NZD (+0.26%). The NZD was the strongest. The JPY was the strongest as the yen benefited from expectations for higher interest rates in Japan.Japan’s 10-year government bond yield moved above 3%, reaching that level for the first time since September 1996—nearly 30 years ago. Higher Japanese yields make domestic assets more attractive to Japanese investors. That can reduce the incentive to send money overseas and provide support for the JPY.PPI and CPI are nextThe inflation focus now turns toward two major U.S. reports:Thursday at 8:30 AM ET: August Producer Price IndexFriday at 8:30 AM ET: August Consumer Price IndexThe PPI measures inflation at the producer level. It can provide clues about cost pressures that may eventually be passed through to consumers. In July, headline final-demand PPI was unchanged.The CPI will be the bigger release. Expectations are centered near a 0.2% monthly increase in core CPI, while the annual headline rate is expected near 3.4%. In July, headline CPI increased 0.1% month over month, while core CPI rose 0.2%.A softer-than-expected inflation reading could provide relief to bonds and stocks. A hotter number—especially with Brent above $100—would reinforce concerns that inflation is becoming more difficult to contain.For traders, the message heading into the next two sessions is straightforward: Oil is a problem, inflation remains the focus, and volatility is likely to remain elevated through the PPI and CPI reports. This article was written by Greg Michalowski at investinglive.com.