US stocks ended lower on Wednesday as oil prices climbed above US$100 a barrel, while rising Treasury yields added pressure ahead of key US inflation data due later this week.
The S&P 500 fell 0.48% to 7,636.46 points, while the Nasdaq Composite declined 0.64% to 26,253.34 points. The Dow Jones Industrial Average dropped 0.77% to 52,381.02 points.
Brent crude rose above US$100 a barrel as concerns over global supply and escalating tensions in the Middle East raised fears of a broader regional conflict. Higher oil prices have also fuelled concerns over inflation.
The S&P 500 energy index gained 1.1%, making it the only sector index to finish higher, while all other sectors declined.
Meanwhile, the yield on the benchmark 10-year US Treasury note climbed to its highest level since November 2023 after the US Treasury Department said it would buy up to US$6 billion of 10- to 20-year government bonds.
Higher yields on government bonds can make equities less attractive to investors, adding to pressure on stocks.
“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,” said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management in Seattle.
Investors are now awaiting US Producer Price Index data on Thursday followed by consumer price data on Friday, with both expected to provide clues on the Federal Reserve’s interest-rate path.
Apple slipped 0.3% after unveiling its first foldable iPhone in its first major product launch under CEO John Ternus.
Elsewhere, Meta jumped more than 6% after rolling out its long-awaited AI assistant, helping limit the S&P 500’s decline. Alphabet fell 2.3% after announcing plans to invest at least US$15.1 billion in AI infrastructure in Finland over the next two years.
The Philadelphia Semiconductor Index gained 0.37%, with Advanced Micro Devices rising 3%.
The S&P 500 remains about 2% below its August 13 record close but is still up around 12% so far this year.
Declining stocks outnumbered advancing stocks on the S&P 500 by a 4.1-to-one ratio, while trading volume across US exchanges stood at 14.7 billion shares, slightly below the 20-session average of 14.9 billion.
Reuters
