August U.S. producer price data and a jump in oil prices renewed inflation concerns, with markets pricing a 70% chance the Federal Reserve raises rates next week. Brent crude rose 6% to $107 a barrel after key supply routes through the Strait of Hormuz and the Red Sea were disrupted by the U.S.-Israeli war on Iran. The S&P 500 fell 0.59% and the Nasdaq slid 0.59%. The S&P 500 is down nearly 3% from its Aug. 13 record close but remains up 11% in 2026.

Meta launched an AI assistant on Tuesday that can autonomously send emails, sell a car and book travel, as it looks to expand revenue beyond advertising. The assistant offers a free basic tier, alongside higher-end subscriptions priced at $20 a month and $100 a month. Meta expects its AI infrastructure spending to exceed $130 billion this year. Internally, major technical and security incidents rose 40% year over year due to an AI-driven surge in code, while staff time spent responding to incidents increased 70%.

Bank of England Governor Andrew Bailey told lawmakers on Tuesday that a rate increase is not inevitable and that policy decisions will depend on economic and geopolitical developments. He said markets have built in a risk premium that implies more tightening than the most likely policy path, reflecting concerns about higher energy prices, according to Reuters. Bailey and three other Monetary Policy Committee members largely reiterated their existing views ahead of the BoE’s Sept. 17 rate announcement. Market pricing points to a 25-basis-point hike by year-end and two additional increases before 2027.

GE Aerospace said it will acquire precision castings supplier Consolidated Precision Products for $11.75 billion, bringing a key engine supply-chain step in-house. The company, which derives about 70% of its revenue from commercial and defense engines, expects CPP to generate about $2 billion in revenue in 2027 and sees airfoil demand rising more than 30% by 2030 versus 2026. GE will fund $7 billion of the purchase with cash and the remainder with new debt, and the deal is expected to close in the second half of 2027.

Indian shares are expected to open little changed on Tuesday after sliding to six-week lows, with sentiment subdued as Middle East conflict risks push Brent crude toward $97 a barrel. India, which imports about 85% of its crude needs, is seen as particularly exposed to higher oil prices that can stoke inflation worries. Foreign investors were net buyers of Indian shares worth 2.8 billion rupees on Monday, snapping a three-session selling streak.

U.S. nonfarm job growth accelerated sharply in August while the unemployment rate held steady at 4.1%, pointing to a stable labor market. After the data, markets priced about a 59% chance of a Fed rate increase at the September 15-16 meeting, up from about 55% beforehand, according to Reuters. The 2-year Treasury yield rose 5 basis points to 4.38% and the 10-year yield added 1 basis point to 4.776%, while the dollar index edged up 0.2% to 99.12.

Asian equities advanced on Friday in line with a global rally as investors awaited key U.S. jobs data. Comments from Federal Reserve Governor Christopher Waller helped ease rate-hike concerns, pulling U.S. Treasury yields and the dollar lower, according to Reuters. The yen strengthened 2.6% for the week to around 155.7 per dollar, while markets trimmed the implied probability of a rate increase at this month’s meeting to 50% from about 63%.

U.S. investors were net buyers of equity funds for a second straight week through August 19, with net inflows totaling $11.72 billion. Largecap and multicap funds drew $9.58 billion and $1.36 billion, respectively, while midcap and smallcap funds saw modest outflows. Fund demand was supported by a strong earnings season and cooler inflation data, despite pressure from a bond market selloff and rising oil prices.

European shares posted modest gains on Friday, supported by a rise in gold prices, though the region was still poised for a weekly decline. Investors weighed persistent strain in global bond markets, while a diplomatic deadlock in the Gulf lifted oil prices and renewed inflation worries. Data showed $2.44 billion flowed into European equities in the week to Aug. 12, the biggest weekly inflow since late February. Brent crude touched a one-month high of $94.71 before profit-taking emerged.