NEW YORK / RankWire.AI / – Wall Street further declined on Wednesday, following the Dow Jones Industrial Average’s drop of 628 points in the previous trading session. The Dow decreased by another 0.77%, while the Nasdaq Composite declined 0.64% and the S&P 500 fell 0.48%. These losses came after a broad-based retreat across major U.S. stock indexes on Tuesday. Central to the market movements were rising oil prices and higher Treasury yields, which influenced trading across both sessions.
Tuesday’s selloff resulted in the Dow dropping 628.18 points, or 1.2%, closing at 52,786.07. The S&P 500 slipped 45.08 points, or 0.6%, ending at 7,673.52. The Nasdaq Composite decreased 85.58 points, or 0.3%, to 26,421.41. Additionally, the Russell 2000 fell 15.44 points, or 0.5%, finishing at 2,960.20. U.S. markets resumed trading after a three-day weekend.
Energy prices climbed as disruptions affected oil exports from the Middle East. On Tuesday, Brent crude briefly neared $99.50 per barrel before settling at $97.92. On Wednesday, the benchmark surged past $100 and closed at $101.21. Meanwhile, West Texas Intermediate crude concluded Wednesday at $96.05 per barrel. The escalation in energy prices coincided with investors awaiting new U.S. inflation figures.
Rising oil prices and bond yields weigh on equity markets
The downturn on Wednesday affected most sectors within the U.S. equity market. The energy sector in the S&P 500 advanced about 1.1%, yet every other major sector finished lower. Apple shares dipped 0.3% after the company’s latest smartphone release, while Meta Platforms rose over 6% following the announcement of new artificial intelligence features. Overall, stocks declining outnumbered those advancing in the S&P 500 by more than four to one.
Treasury yields also increased during Wednesday’s session, with the benchmark 10-year U.S. Treasury yield reaching its highest point since November 2023. The U.S. Treasury Department announced plans to purchase up to $6 billion of government bonds maturing between 10 and 20 years. Elevated government bond yields tend to draw capital away from equities, as Treasuries now offer comparatively lower-risk returns.
Inflation reports become a focal point for markets
Ahead of two significant U.S. inflation reports, markets faced further uncertainty. Producer price data for August is expected Thursday, followed by consumer price figures on Friday. Both reports precede the Federal Reserve’s policy meeting scheduled for September 15 to 16. Market participants are pricing in roughly a 60% chance of an interest rate hike. The Federal Reserve continues to keep a close eye on inflation trends while evaluating economic and financial market conditions.
Despite the two-day decline, major U.S. stock indexes remain higher for 2026. After Wednesday’s close, the S&P 500 had gained approximately 12% for the year and was about 2% below its record close from August 13. The Nasdaq was up roughly 13%, while the Dow had increased around 9%. Trading volume for Wednesday reached roughly 14.7 billion shares, slightly below the recent 20-session average of 14.9 billion.