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Oil Prices Weigh on Markets
US stocks fell on Wednesday as oil prices surged above $100 a barrel and Treasury yields climbed, putting pressure on equities ahead of key inflation data due later this week .
The energy index was the only one in the green on the S&P 500, advancing 0.95%. “The big story of the day is oil prices, and they are taking the wind out of stocks,” said Peter Cardillo, chief market economist at Spartan Capital Securities .
Tech Stocks Mixed
Apple dropped 1.1% ahead of its first launch event under new CEO John Ternus, where the company is expected to unveil a foldable iPhone . Other technology heavyweights also declined, with Nvidia falling 0.60% and Alphabet losing 2.54%.
Meta was an exception, rising 5.95% after the company rolled out its long-awaited AI assistant that can autonomously send emails, sell cars, and make travel bookings on users’ behalf . Chipmakers Arm Holdings and AMD rose 1.13% and 3.69%, respectively.
Treasury Yields Rise
The yield on the benchmark 10-year US Treasury note rose to its highest since November 2023 after the Treasury Department said it would buy up to $6 billion in 10-to-20-year government bonds . High yields on risk-free government bonds typically pressure stocks by making it less attractive for investors to take on the added risk of holding equities.
Inflation Data in Focus
The Consumer Price Index report scheduled for Friday and Producer Price Index data on Thursday will be in focus for clues on the US Federal Reserve’s interest-rate path . Markets see a 62.4% chance interest rates will be increased by 25 basis points when the US central bank meets next week, according to CME’s FedWatch.
Market Performance
At 11:53 am ET, the Dow Jones Industrial Average fell 397.51 points, or 0.75%, to 52,390.60. The S&P 500 dropped 34.18 points, or 0.45%, to 7,639.34, and the Nasdaq Composite lost 163.17 points, or 0.62%, to 26,258.24.
