NEW YORK / RankWire.AI / – Wall Street continued its downward trend on Wednesday following a drop of 628 points in the previous session by the Dow Jones Industrial Average. The index declined an additional 0.77%, while the Nasdaq Composite fell 0.64% and the S&P 500 decreased by 0.48%. These losses followed a broad retreat across major U.S. stock indexes on Tuesday. Both sessions were influenced by rising oil prices and higher Treasury yields, which remained key factors in market movements.
On Tuesday, the selloff pushed the Dow down by 628.18 points, equivalent to 1.2%, closing at 52,786.07. The S&P 500 dropped 45.08 points or 0.6%, ending at 7,673.52. The Nasdaq Composite declined by 85.58 points, or 0.3%, settling at 26,421.41. The Russell 2000 decreased 15.44 points, or 0.5%, to 2,960.20. Markets in the U.S. reopened after a three-day weekend, adding to the volatility.
Energy prices surged amid disruptions affecting oil shipments from the Middle East. Brent crude briefly neared $99.50 a barrel on Tuesday before settling at $97.92. On Wednesday, it climbed above $100 and closed at $101.21. Meanwhile, West Texas Intermediate crude finished the day at $96.05 a barrel. This rise in energy costs came as investors awaited new U.S. inflation data, influencing market sentiment.
Rising Oil Prices and Bond Yields Put Pressure on Equities
The decline on Wednesday affected most sectors of the U.S. markets. The energy sector within the S&P 500 gained around 1.1%, but all other major sectors finished in the red. Apple’s shares slipped 0.3% after launching its latest smartphone. Conversely, Meta Platforms rose more than 6% following the introduction of new artificial intelligence features. Overall, stocks that declined outnumbered advancing shares in the S&P 500 by more than four to one.
During Wednesday’s trading session, Treasury yields also increased. The benchmark 10-year U.S. Treasury yield reached its highest point since November 2023. The U.S. Treasury Department announced plans to purchase up to $6 billion of government bonds with maturities between 10 and 20 years. Rising government bond yields tend to compete with equities for investor capital, as Treasuries generally provide lower-risk returns.
Upcoming Inflation Reports Keep Market Focus on Price Trends
The recent decline in stock prices comes ahead of two key U.S. inflation reports. Producer price data for August is scheduled for Thursday, followed by consumer price figures on Friday. These reports are released ahead of the Federal Reserve’s policy meeting scheduled for September 15 to 16. Traders are currently pricing in about a 60% chance of an interest rate hike. The Federal Reserve continues to scrutinize inflation figures while assessing the overall economic conditions and financial markets.
Despite the two-day downturn, major U.S. stock indexes remain positive for 2026. After Wednesday’s closing, the S&P 500 was approximately 12% higher this year and about 2% below its record close on August 13. The Nasdaq advanced roughly 13%, while the Dow gained approximately 9%. Trading volume on Wednesday reached around 14.7 billion shares, slightly below the recent 20-session average of 14.9 billion.