Oil at $100 Sparks Market Jitters as Retail Giants Split on Tariff Costs

U.S. stock futures and Treasury prices slipped on Tuesday as investors returned from the Labor Day weekend to face a new worry: Brent crude oil nearing $100 a barrel [237670]. The higher cost of oil dragged on market sentiment, making traders cautious before the opening bell [237670]. Treasury yields rose as bond prices fell, reflecting a shift away from safer assets [237670]. The move comes as global energy prices climb, raising concerns about inflation and its impact on consumer spending and corporate profits [237670].

Meanwhile, retail giants are taking opposite approaches to refunding suppliers for new U.S. tariffs, creating a potential headache for smaller brands that sell through both chains [237637]. Walmart has told its suppliers it will not cover the cost of the latest import taxes, according to internal communications seen by Reuters [237637]. The company is pushing vendors to absorb the fees or find ways to cut production costs [237637]. Home Depot, in contrast, is offering to reimburse its suppliers for the full amount of the new tariffs on goods already ordered, though it has not said whether it will extend this policy to future shipments [237637].

The difference matters because most large retailers rely on a mix of imported goods [237637]. Tariffs are taxes paid at the border, and companies must decide who bears that cost—the store, the supplier, or the customer [237637]. Walmart’s stance pressures its vendors to lower their own profit margins, while Home Depot’s approach protects its suppliers but may lead to higher prices for its own shoppers down the line [237637]. Neither company has issued a public statement on the matter [237637]. For now, suppliers selling to both chains face a simple question: which side of the counter is more willing to pay up [237637].