Market Midday: Stocks Higher, Rate Hike Likely, Mortgage Rates Rise • 9/11/26

Wall Street with moments of silence this morning. Marking the 25th anniversary of the 9-11 terrorist attacks in 2001, the New York Stock Exchange was closed for four trading days following the event. The major average is higher out of the gate this morning after four down days in a row. Traders shaking off firm inflation data and hotter than expected core numbers. Let's start with the Dow. It's up 501 points being led higher by shares of Cisco up two and a half percent. Caterpillar shares up two percent this morning. The S&P 500 index up 72 points. That's one percent. And the Nasdaq up 273 points. A little more than one percent. Major averages are on pace for a losing week. CNBC's Rick Santelli here with the CPI numbers. The Consumer Price Index for August. Headline number exactly as expected. Up four-tenths. Up four-tenths would be the warmest since it was up half of one percent in May. Now if we look at core. And this is important. Significant. Comes in a little hotter. Up three-tenths. This would be the warmest since April of this year. And Santelli's got a look at treasury yields. The 10-year treasury yield is higher on the inflation numbers. What are interest rates doing? As I pointed out, they're really up dynamo on the week and they're moving up now. We're now at 461. Really, 462 almost. Knocking on the door. And the 10s. And everybody, of course, is looking to see if we jump on five percent. We touched it intraday in 23. Haven't closed above it in 19 years. But I do caution. A lot of these moves are oil. And oil's moving down today. So that's something to pay attention to with influence on treasuries. The report is the final major inflation indicator the Fed will see before it holds its policy meeting next week. We'll find out Wednesday whether the Fed decides to try to tamp down inflation with a interest rate increase. Here's CNBC senior economics reporter Steve Leesman. 88 percent probability now. So the market now pricing this as a done deal. Give it a little time. Sometimes you get the black boxes and they do all the trading for a little while. And then humans get involved and maybe they'll make a different assessment. But this came in hot. I don't think this is just one number leading the Fed to hike. You have the market and you have a Fed chair who has said the market is going to help guide him. You had him concerned about the diffusion of inflation throughout the system. U.S. crude oil sitting at $99 a barrel today, down from 101, although traders are watching fresh violence in the Middle East. The Iran-backed Houthis reportedly have advanced to a key Red Sea island, further threatening a crucial oil choke point. President Trump saying Iran is leveraging oil supplies to push Americans' pain at the pump higher to try to force an unfavorable outcome for Republicans in the November midterm elections. Diesel sitting at a national average of $6 a gallon today for the first time ever, an all time high. According to AAA, diesel is the fuel that powers trucks, trains, ships and agriculture equipment. Its price increases can trickle throughout the entire economy, fueling inflation. Watch Oracle shares today. They were jumping after it reported a whopping 30% revenue growth in the last quarter, fueled by AI cloud demand. New in theaters for the weekend, Focus features The Uprising, Disney's Oasis documentary Don't Look Back in Anger, and Warner Brothers' Practical Magic 2. Jessica Ettinger, CNBC.