US stock indices closed mixed on Thursday amid renewed bond and oil volatility. The S&P 500 and Nasdaq were near flat, while the Dow shed 162 points. The 10-year US Treasury yield topped 5.15% before retreating to around 5.1%, remaining at 2007 highs. The 30-year yield climbed to its highest level since 2004. Borrowing costs rose as oil prices increased amid heightened US-Iran tensions. However, reports suggested US and Iranian negotiators were closer to an agreement to restore tanker flows through the Strait of Hormuz. Oil trimmed gains, easing yields on shorter-dated maturities. AI hyperscalers closed mixed, with Alphabet up 1.3% and Meta adding 4.5% following positive feedback on its AI agent software and gadget releases. Microsoft shed 0.5%, while Amazon was flat. Oracle fell 3.5% after declaring force majeure over setbacks to a data center development in New Mexico. Chipmakers were also mixed amid heavy debt issuance for AI infrastructure.

Crude oil traded near $95 a barrel on Thursday, trimming a surge that peaked at $97 amid signs that the US and Iran could be working to restore Persian Gulf exports. Reports suggested US and Iranian negotiators were exploring a deal to lift naval blockades on tankers crossing the Strait of Hormuz and ease US sanctions on Iran. Earlier, prices surged after Iran-allied Houthi militants in Yemen fired missiles at Saudi cities including Yanbu and Taif. Yanbu is a key oil export terminal on Saudi Arabia’s Red Sea coast. Saudi Arabia’s workaround for the Strait of Hormuz now carries war-risk insurance costs nearly as high as sending tankers through the strait. Only 10 commodity vessels transited Hormuz on Wednesday, below the 10-day moving average of 17. Meanwhile, the US Senate narrowly rejected a nonbinding measure demanding an end to the war with Iran.

European stocks closed lower on Thursday as soaring energy prices lifted benchmark rates. The Euro STOXX 50 fell 0.4% to 6,275, and the STOXX Europe 600 fell 0.5% to 637. Fuel and natural gas prices surged amid signs that the naval blockade in the Persian Gulf could be prolonged, in addition to signals from the US presidential administration that diesel exports could be banned. Sovereign yields extended their surge this week, weighing on the corporate sector. Infineon sank 4.2% and Siemens Energy dropped 1.7%, tracking the negative AI trade in North America. On top of that, banks were also mostly lower, with UniCredit and Deutsche Bank losing 1.6% and 2.3%, respectively. Meanwhile, Dior surged 16% after the Arnault family group announced a €469-per-share cash offer. Outside the Eurozone, the SNB held rates as expected and pushed back against franc intervention, steadying Swiss banks. On the other hand, the Riksbank delivered a hawkish hold, and Norges Bank lifted its policy rate.

Sales of new single-family homes in the US jumped 6.4% from the previous month to a seasonally adjusted annualized rate of 684,000 in August 2026. It was the highest level of sales since the start of the year, beating market expectations of 620,000, even though hawkish Federal Reserve expectations lifted mortgage rates during the period. Sales surged in the Midwest (84.9% to 98,000) and edged higher in the South (6.9% to 451,000), which was enough to offset declines in the Northeast (-36.1% to 23,000) and the West (-15.2% to 112,000). The outstanding supply of new houses was unchanged at 483,000, equivalent to 8.5 months of supply at the current sales pace. Meanwhile, the median sales price inched higher to $393,700.

The number of people claiming unemployment benefits fell by 1,000 to 197,000 in the second week of September, the least since the 60-year low of 189,000 from July, and below market expectations of 201,000. Continuing claims, a gauge of outstanding unemployment in the US, rose by only 2,000 to 1,719,000 in the earlier period from the downwardly revised value, remaining close to the lowest in over three years. The data extended the period of resilience in the US labor market as the Federal Reserve cites full employment. Meanwhile, initial claims filed by federal employees, which have added spotlight on the administration's signal to shrink the of public sector, fell by 38 to 362, well below historical levels.

Retail sales in Canada likely increased 1.3% month-over-month in August 2026, rebounding from a 0.7% fall in July, according to preliminary estimates. It would mark the strongest gain in retail sales since January. Meanwhile in July, sales at motor vehicle and parts dealers were down 0.8%, posting their first decline in four months, led by lower sales at new car dealers (-1.3%). Also, sales at gasoline stations and fuel vendors declined 0.9%, sales at general merchandise dropped 1.9% and lower sales were also recorded at clothing, clothing accessories, shoes, jewelry, luggage and leather goods retailers (-1.2%). In contrast, sales went up for building material and garden equipment and supplies dealers (+0.8%) and used car dealers (+2.9%). Core retail sales, which exclude gasoline stations and fuel vendors and motor vehicle and parts dealers, were also down 0.7% in July. Year-on-year, retail sales increased 5.1%.