US stocks closed lower on Sept 10 as surging oil prices, firm producer inflation and climbing Treasury yields revived fears that the Federal Reserve (Fed) could raise interest rates next week.
According to Reuters, the S&P 500 fell 0.58% to 7,591.75, while the Nasdaq Composite dropped 0.65% to 26,081.73. The Dow Jones Industrial Average lost 0.6% to close at 52,064.10.
Oil was a major pressure point. Brent crude surged 6% to US$107 a barrel as disruptions to supply routes through the Strait of Hormuz and Red Sea heightened inflation concerns amid the US-Israeli war on Iran.
Treasury yields also climbed sharply, with the benchmark 10-year yield reaching its highest level in nearly three years. The 30-year yield hit its highest in more than 19 years, while the two-year yield rose to its strongest level in more than two years.
Adding to the pressure, August producer prices rose in line with expectations on a monthly basis, driven partly by higher energy costs. Traders now price in a 70% probability that the Fed will raise rates by at least 25 basis points next week, up from about 64% before the report.
Technology stocks weighed on the market, with Nvidia dropping 2.3% and Micron Technology sliding 4.7%. Apple bucked the trend, jumping 3.6% a day after unveiling a US$1,999 iPhone.
Nine of the S&P 500’s 11 sectors finished lower, led by materials, which fell 1.45%, while information technology declined 0.91%.
The S&P 500 has now lost 2% over four sessions, its steepest four-day decline since June, and sits nearly 3% below its Aug 13 record closing high. The benchmark remains up about 11% for 2026.
Elsewhere, Macy’s fell 4.7% despite raising its annual outlook, while American Eagle Outfitters plunged 14% after maintaining its comparable-sales forecast amid weak discretionary spending.
Investors now turn to Sept 11’s August consumer inflation report for the next major clue on the Fed’s rate path.
