U.S. stocks finished lower Wednesday as Brent crude climbed above $100 a barrel and the 10-year Treasury yield reached its highest level since November 2023, intensifying investor concerns about inflation and interest rates.
By yourNEWS Media Newsroom.
Wall Street closed lower Wednesday as oil prices surged past $100 a barrel and Treasury yields climbed, putting renewed pressure on stocks ahead of closely watched U.S. inflation reports later this week.
Preliminary closing data showed the S&P 500 fell 36.36 points, or 0.47%, to 7,637.16. The Nasdaq Composite dropped 164.77 points, or 0.62%, to 26,256.64, while the Dow Jones Industrial Average declined 403.65 points, or 0.76%, to 52,382.42.
The S&P 500 has retreated about 2% from its Aug. 13 record closing high but remains approximately 12% higher for 2026.
Energy was the only S&P 500 sector to finish higher as concerns about global supplies and escalating Middle East tensions drove Brent crude above $100 a barrel. The U.S.-Israeli war with Iran, now in its seventh month, has heightened concerns about regional energy disruptions and the potential for elevated oil prices to feed broader inflation.
Bond markets added another source of pressure. The benchmark 10-year Treasury yield rose to its highest level since November 2023 after the Treasury Department announced plans to repurchase up to $6 billion of government securities with maturities between 10 and 20 years. Some market participants had anticipated purchases totaling between $8 billion and $10 billion.
Higher government bond yields can weigh on stocks by increasing the return available on lower-risk Treasury securities and raising financing costs throughout the economy.
“That’s leaving markets a little concerned, particularly as we don’t have a lot to go on in terms of earnings expectations until we start to get into third-quarter reporting season,” Rob Haworth, senior investment strategist at U.S. Bank Wealth Management in Seattle, said.
Investors are now looking toward Thursday’s Producer Price Index report and Friday’s Consumer Price Index for evidence about the direction of inflation and the Federal Reserve’s next move. Traders were pricing in a 60% probability that policymakers will raise interest rates at next week’s meeting.
Individual technology stocks produced mixed results.
Meta gained after introducing an artificial intelligence assistant capable of carrying out tasks on users’ behalf, including sending emails, selling a vehicle and making travel reservations. The advance helped limit the S&P 500’s overall decline.
Alphabet moved lower after the Google parent announced plans to invest at least $15.1 billion in artificial intelligence infrastructure in Finland during the next two years, including a major agreement involving nuclear-power supplies.
Semiconductor shares performed better, with the Philadelphia Semiconductor Index advancing as Advanced Micro Devices gained.
Dow also declined after Bloomberg News reported that the chemicals company was considering withdrawing from its $20 billion partnership with Saudi Aramco.
With oil again above the psychologically significant $100 threshold and Treasury yields moving higher, markets head into the final two trading sessions of the week focused heavily on whether inflation data will reinforce expectations for another Federal Reserve rate increase.
Original article
Comments