US stocks today: US stocks retreat as oil crosses $100, yields rise ahead of inflation data

U.S. stocks closed lower on Wednesday as oil prices surged above $100 a barrel, adding to inflation concerns and putting pressure on equities ahead of key U.S. inflation data that could influence the Federal Reserve's next interest-rate decision, Reuters reported.

The S&P 500 fell 36.36 points, or 0.47%, to 7,637.16, while the Nasdaq Composite dropped 164.77 points, or 0.62%, to 26,256.64. The Dow Jones Industrial Average lost 403.65 points, or 0.76%, to 52,382.42, according to preliminary data cited by Reuters.

Oil surge raises fresh inflation concerns

Brent crude moved above the psychologically important $100-a-barrel mark as concerns over global oil supplies grew amid escalating tensions in the Middle East. The U.S.-Israeli war on Iran has entered its seventh month, raising fears that the conflict could spread across the region and further disrupt energy supplies.


For investors, the oil rally carries a broader implication because higher energy prices can feed into inflation and complicate the outlook for interest rates. The S&P 500 energy index gained on Wednesday, while all other sector indexes fell.

The rise in oil prices also came as Treasury yields climbed. The yield on the benchmark 10-year U.S. Treasury note reached its highest level since November 2023 after the Treasury Department said it would buy up to $6 billion of government bonds with maturities of 10 to 20 years.

That purchase was smaller than some analysts had anticipated, with expectations ranging from $8 billion to $10 billion. Higher yields on relatively risk-free government debt can make stocks less attractive to investors, adding to the pressure on equities.

"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, according to Reuters.

Inflation data now takes centre stage

Investors will turn to the Producer Price Index on Thursday and consumer price data on Friday for clues about the Federal Reserve's interest-rate path. Traders are pricing in a 60% chance that the Fed will raise interest rates at its policy meeting next week.

The S&P 500 is now around 2% below its August 13 record closing high, although the index remains up about 12% in 2026.

Some technology stocks provided support. Meta jumped after the social media company rolled out its long-awaited AI assistant, which can autonomously perform tasks including sending emails, selling a car and making travel bookings on behalf of users.

Alphabet declined after the Google parent said it would invest at least $15.1 billion in AI infrastructure in Finland over the next two years, including a major agreement for the supply of nuclear power.

The Philadelphia Semiconductor Index gained, with Advanced Micro Devices among the stocks rising. Dow, meanwhile, fell after Bloomberg News reported that the chemicals maker was considering exiting its $20 billion partnership with Saudi Aramco.

(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)