CNBC Business News Update - Market Close: Stocks Lower, Fuel Prices Surge, Inflation Data Ahead • 9/4/26

Episode Date: September 4, 2026

CNBC Business News Update with Jessica Ettinger - Markets & Business News With Expert Analysis From Top Business Names. Visit CNBC.com For More. Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com for information about our collection and use of personal data for advertising.

CNBC Business News Update Market Close. I'm Jessica Eddinger. Wall Street opens Tuesday morning after the Labor Day holiday with a mixed week in the rear view for the major averages. On Friday, stocks fell after a stronger-than-expected jobs report that pushed yields up. The two-year Treasury note at its highest since last year. On Friday, the Dow, down 271 points led lower by shares of Apple, which were down two and a half percent. The S&P 500 index fell 29. points. The NASDAQ was down 77 points. For the week, the S&P 500 index and the NASDAQ each eeked out slight gains. Inflation is in focus in the coming week. We get the PPI producer price index for

August coming Thursday. The big CPI Consumer Price Index comes Friday and that data are what Fed members are waiting for to try to decide whether they're going to raise interest rates. CNBC's Kelly Evans and Wells Fargo, Chief Economist Tom Porcelli, on Fed Chair Kevin Warsh's predicament. If you're trying to sell the idea that you are willing to make a decision to hike rates, right, which is what Walsh is basically trying to drive home to the market, then that means that if the data move against you, you're going to actually have to hike. Again, I don't love the idea that it's all about this singular report,

but I think that's the corner that Warsh has painted themselves. So in other words, you do think it comes down to what happens with CPI and PPI next week. I do. I stress. I don't think monetary policy should be crafted that way, but this is where we are. And inflation is front and center for Americans who've never paid this much at the pump ever for gas over a Labor Day holiday weekend. A record high 415 for a gallon of regular, according to AAA. And for trucks, ships, trains, and ag equipment, diesel is at an all-time high of $5.85 a gallon. Everything related to transportation can be impacted by diesel prices.

Consumer goods, agriculture. The real problem on diesel is the lack of spare capacity. when it comes to refineries. U.S. refineries are running at 98% utilization rates. That's RBC's Halima Croft on CNBC, and she explains why. The war with Iran, a number of refineries in the Middle East have been targeted. We're not getting product out of this rate of Pormuz. Ukraine continues to target Russian refineries. So we're facing a refinery shortage in terms of spare capacity, and that's profoundly impacting diesel prices.

And MAI capitals Chris Cresanti with this note, Diesel is closely related to heating fuel. And as we get towards the midterm elections, it gets colder as November comes. And so all of a sudden, folks are going to get their first heating bill of the season. And it's going to be shockingly high. The August jobs report came in strong. 162,000 jobs created last month after very soft hiring in June and July. So where were the bulk of August jobs created?

Leisure and hospitality? and schools. Two-thirds of the gains are restaurants and local education. Solid labor market, or at least one that is steady, is the way we can characterize this. That's CNBC's Mike Santoli and Carl Keentania. The Brookings institutions Wendy Edelberg tells CNBC she thinks the August jobs number might get revised lower. I am very puzzled actually by the strength in the payroll numbers. So at 71,000 on average for the last three months, That's like seven times faster than the pace of job growth last year. I see nothing else in the labor market that suggests that kind of pick up an activity.

On the coming week's watch list, as we mentioned, it's all about the latest inflation numbers Thursday and Friday. The NFL season kicks off Wednesday night Friday. The nation remembers the September 11th terrorist attacks 25 years ago. On Monday, the financial markets are closed for the Labor Day holiday. Jessica Eddinger. NBC.