Oil prices surged more than 4% on Monday to a 16-week high, with Brent rising to $109.29 a barrel and WTI to $104.26. The rally followed an attack that knocked out Saudi Arabia’s east-west pipeline, threatening up to 4% of global oil supply, alongside ship attacks in the Middle East that added to supply worries. U.S. diesel futures also climbed, edging toward a record high.

Stronger-than-expected U.S. wholesale inflation data rekindled concerns that interest rates may stay higher for longer. The Dow, S&P 500 and Nasdaq all fell about 0.6% as U.S. 10-year Treasury yields rose to 4.96%. Brent crude climbed above $100 a barrel for the first time since July, adding to inflation worries. The European Central Bank raised its key rate by 25 basis points to 2.50%.

Meta has launched Muse, an AI agent that can connect to apps including email, calendars, payments, health, shopping and smart-home services, with users able to choose access and revoke it. The company is offering a free version, alongside paid plans priced at $20 and $100 a month. An internal report also found major technical and security incidents across the company rose 40% year over year, while time spent on firefighting increased 70%.

Qualcomm said Amazon could purchase as much as $60 billion of AI datacenter products through a long-term collaboration. The news helped lift AMD shares about 6.7% as investors continued to bet on rising demand for AI computing infrastructure. AMD reported quarterly revenue up 50% to $11.54 billion, with datacenter sales more than doubling to $6.7 billion, or roughly 58% of total revenue. Qualcomm is targeting $15 billion in annual datacenter revenue by 2029.

Broadcom said revenue rose 86% year over year in its latest quarter, while adjusted earnings per share jumped 96%. Quarterly AI semiconductor revenue tripled to $16.7 billion, driven by hyperscaler demand for custom AI chips and networking gear. CEO Hock Tan told analysts the company expects to ship $350 billion of AI semiconductors to six hyperscaler customers over the next two years.

Several tech giants have sharply raised AI-related capital spending plans. Alphabet lifted its full-year capex guidance to $195 billion to $205 billion and said spending is expected to rise “significantly” in 2027. Tesla said it plans $25 billion of capex in 2026, roughly three times its historical level, while SpaceX’s second-quarter capex hit $18.4 billion, far above analysts’ roughly $6 billion estimate.

Kansas City Federal Reserve President Jeff Schmid said ahead of the Jackson Hole gathering that policy is still too accommodative while inflation remains above the Fed’s 2% goal. He highlighted a 20% to 30% surge in agricultural commodities in recent weeks as a potential new source of inflation pressure. Schmid also downplayed the impact of possible renewed U.S.-Canada tariffs, calling them a small part of the broader economy. His comments reinforced concerns that the Fed could keep policy tight for longer.

Nvidia plans to raise prices by more than 15% on several AI servers to offset higher costs for components such as memory. The company reported $81.6 billion in revenue last quarter, up 85% year over year, including $75.2 billion from its Data Center business, which rose 92%. Non-GAAP gross margin was 75%, and Nvidia guided fiscal second-quarter revenue to roughly $91 billion while maintaining a 75% non-GAAP gross margin.

The Trump administration has returned more than $100 billion in IEEPA-related tariffs, about 60% of what was collected. Walmart received about $2.9 billion in refunds. Target took in $994 million and used it to lift margins, contributing $1.65 to earnings per share. Amazon and Home Depot received roughly $600 million and $730 million, respectively.