NEW YORK / RankWire.AI / – The decline on Wall Street persisted on Wednesday, continuing from the previous session where the Dow Jones Industrial Average dropped 628 points. The Dow fell an additional 0.77%, with the Nasdaq Composite decreasing 0.64% and the S&P 500 slipping 0.48%. These losses followed a broad-based retreat across major U.S. equity indices on Tuesday. Key factors influencing the markets included rising oil prices and increasing Treasury yields, which remained central themes over both trading sessions.
Tuesday’s selloff saw the Dow drop 628.18 points, or 1.2%, ending at 52,786.07. The S&P 500 declined 45.08 points, or 0.6%, closing at 7,673.52. The Nasdaq Composite slid 85.58 points, or 0.3%, to 26,421.41. The Russell 2000 also fell by 15.44 points, or 0.5%, finishing at 2,960.20. U.S. markets had reopened after a three-day weekend, adding to the volatility.
Energy prices moved upward amid disruptions impacting oil flows from the Middle East. On Tuesday, Brent crude briefly neared $99.50 a barrel before settling at $97.92. On Wednesday, the benchmark surpassed $100 and closed at $101.21. Meanwhile, West Texas Intermediate crude ended Wednesday at $96.05 a barrel. The uptick in energy costs coincided with investors awaiting fresh U.S. inflation data.
Rising oil prices and bond yields weigh on equities
The downward trend on Wednesday affected most sectors of the U.S. stock market. The energy sector within the S&P 500 gained approximately 1.1%, but all other major sectors ended the day in the red. Apple shares declined 0.3% following its latest smartphone launch, while Meta Platforms increased more than 6% after unveiling new AI capabilities. Declining stocks outnumbered advancers in the S&P 500 by more than four to one.
Treasury yields also moved higher during Wednesday’s trading session. The benchmark 10-year U.S. Treasury yield hit 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 bond yields tend to attract investor capital away from equities because Treasuries offer lower-risk returns.
Market focus shifts to upcoming inflation reports
The recent declines occurred ahead of two key U.S. inflation reports scheduled for Thursday and Friday, respectively. Producer price data for August is due Thursday, followed by consumer price figures on Friday. Both releases come before the Federal Reserve’s policy meeting on September 15 to 16. Market traders are pricing in roughly a 60% probability of an interest rate hike. The Federal Reserve continues to keep a close watch on inflation, economic conditions, and financial markets in its decision-making process.
Despite the two-day downturn, major U.S. stock indexes remain positive for 2026. After Wednesday’s close, the S&P 500 was approximately 12% higher for the year and about 2% below its record close on August 13. The Nasdaq was up roughly 13%, while the Dow had gained around 9%. Trading volume on Wednesday reached about 14.7 billion shares, slightly under the recent 20-session average of 14.9 billion.