Key Takeaways
- US New Home Sales surged 6.4% in August to an annualized rate of 684,000, significantly outperforming the economist estimate of 616,000.
- Wall Street opened in the red, with the Nasdaq dropping over 0.7% and Oracle (ORCL) shares falling 5.7% to their lowest levels since early August.
- Bank of England Deputy Governor Sarah Breeden warned that the "balance of risks has shifted," suggesting the BoE may need to respond if energy price risks crystallize.
- The United States seized three tankers carrying nearly six million barrels of Iranian crude oil, valued at approximately $600 million, as part of sanctions enforcement.
- Russia raised its 2026 oil export outlook to 244.7 million tons, even as global energy supply chains face ongoing geopolitical friction.
US Housing Market Shows Unexpected Strength
The US housing market provided a major upside surprise on Thursday as New Home Sales for August reached 684,000. This figure represents a 6.4% month-over-month increase, rebounding sharply from a revised July contraction. The data suggests that despite broader economic uncertainty, demand for new construction remains resilient.
While sales volume increased, the median sale price fell to $393,700, a 5.8% decrease compared to August 2025. This downward trend in pricing may be a key driver for the increased sales volume, as builders offer incentives and lower price points to attract buyers.
Markets Open Lower as Tech and Energy Weigh on Sentiment
Major US indices opened lower on Thursday morning. The Nasdaq Composite led the decline, falling 208.33 points (0.77%) to 26,727.71. The Dow Jones Industrial Average dropped 0.34%, while the S&P 500 slipped 0.50% in early trading.
Oracle (ORCL) was a notable laggard, with shares tumbling 5.7%. The sell-off brought the software giant to its lowest valuation since August 3, weighing heavily on the tech sector. Meanwhile, Paramount Skydance Corp began syndication for a $7.50 billion incremental term loan facility, signaling major activity in the media financing space.
Bank of England Signals Hawkish Shift on Energy Risks
Bank of England (BoE) Deputy Governor Sarah Breeden delivered a series of cautious remarks regarding inflation and energy prices. Breeden noted that it is "not at all obvious" that there is a path to lower energy prices in the near term. She emphasized that the balance of risks has shifted, making it increasingly likely that the BoE will need to respond if these risks crystallize.
Breeden highlighted that while the indirect pass-through of energy prices has been limited so far—suggesting some slack in the economy—policymakers "can't wait too long" for conclusive evidence of second-round effects. She noted that the BoE is closely monitoring the Decision Maker Panel (DMP) survey and PMI data to guide future pricing decisions.
Geopolitical Tensions and Energy Supply
In a significant escalation of sanctions enforcement, the United States captured three tankers linked to Iran in the Atlantic Ocean. The vessels, including the Majestic X and Tifani, are reportedly carrying nearly six million barrels of crude oil worth roughly $600 million. The US War Department confirmed the seizures targeted ships supporting sanctioned Iranian entities.
Simultaneously, Russia has increased its 2026 oil export outlook to 244.7 million tons, according to Interfax. In the Middle East, diplomatic movements continue as Israeli Prime Minister Benjamin Netanyahu arrived in the US for the UN General Assembly, where he is expected to deliver a high-stakes speech later today.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.