As September begins, markets are showing signs of the volatility that often characterizes the month, with hosts Andrew Horowitz and John C. Dvorak of the podcast DH Unplugged dissecting the latest developments in their episode titled "Strikes, Spikes, Hikes." The episode, released September 1, 2026, comes amid renewed U.S. bombing of Iran, a sharp rise in crude oil, and climbing bond yields, all set against a backdrop of eroding institutional trust and a Federal Reserve caught between political pressure and a fragile labor market.
Crude oil has surged roughly 13% in two weeks to about $91.80 per barrel, with diesel crack spreads flashing inflation warnings. This spike is significant as it could exacerbate inflationary pressures, complicating the Fed's policy decisions. The hosts also point to blowout guidance from Dell, which projects fiscal 2027 EPS near $25.50 versus $18.99 prior, driven by a 40% data center share. This suggests strong demand in the tech sector, but also potential concentration risks.
In other corporate news, Nvidia is reportedly in pursuit of Hugging Face with a $12.9 billion offer, while the fallout between Jensen Huang and Sam Altman adds intrigue. Conversely, Dick's Sporting Goods plunged roughly 30% as Foot Locker comps fell 3.6%, highlighting softness in consumer discretionary spending. Additionally, Target faces a Halloween clown costume backlash, underscoring the risks of brand mismanagement in a socially sensitive environment.
The hosts express skepticism about government interventions, particularly Treasury Secretary Scott Bessent's attempts to manipulate markets. Horowitz remarks, "The administration is the boy who cried wolf right now," adding that Bessent has been "crazed" in his efforts. Dvorak connects these issues to bond yields and the dollar, arguing that trust is the foundation for currencies, equities, and private valuations. He warns that tariff escalation reminiscent of Smoot-Hawley would signal that America no longer believes it can compete.
The discussion also covers government equity stakes in Intel, MP Materials, and Trilogy Metals, with a lawsuit challenging the Intel arrangement. Horowitz, who discloses a short position in Intel, questions why Washington receives discounted shares unavailable to retail investors. Dvorak contrasts this with China's state-owned enterprise model and highlights GLM 5.3 Flash from Chinese lab Z.ai, reportedly trained without a single Nvidia chip, which could have implications for the AI supply chain.
Other topics include President Trump's threat that Iran will be "totally wiped out as a country" if it retaliates again, LEGO's 21% first-half revenue jump, and the baseball-card casino economy drawing scrutiny from Japanese regulators. The hosts also preview Friday's data releases, including August payrolls, ADP, JOLTS, and ISM reports, which will provide further clarity on the labor market and economic health.
This episode encapsulates the current market uncertainty, driven by geopolitical tensions, commodity price swings, and a crisis of confidence in institutions. As investors navigate these turbulent times, the insights from Horowitz and Dvorak offer a critical perspective on the forces shaping the financial landscape.
