NEW YORK / RankWire.AI / – U.S. stocks extended their downward movement on Wednesday after a sharp selloff on Tuesday caused the Dow Jones Industrial Average to drop 628 points. The index decreased by 0.77% to close at 52,381.02, while the S&P 500 declined by 0.48%. The Nasdaq Composite also fell 0.64%, as broad market sectors experienced selling pressure. Rising oil prices and increasing Treasury yields continued to be key influences on trading activity across both sessions.
Tuesday’s decline saw the Dow lose 628.18 points, equivalent to 1.18%, ending at 52,786.07. The S&P 500 dropped 45.08 points, or 0.58%, to finish at 7,673.52. Meanwhile, the Nasdaq Composite decreased by 85.58 points, or 0.32%, closing at 26,421.41. Small-cap stocks also weakened, with the Russell 2000 falling 15.44 points, or 0.52%, to 2,960.20 as U.S. markets resumed trading after the extended weekend.
Oil prices surged amid disruptions affecting energy flows from the Middle East, adding pressure on global markets. Brent crude neared $99.50 a barrel on Tuesday before settling at $97.92. Prices increased once again on Wednesday, with Brent closing at $101.21 and West Texas Intermediate ending at $96.05. These gains brought energy costs back into focus as investors prepared for upcoming U.S. inflation reports and monitored the influence of higher commodity prices.
Rising oil prices put pressure on various markets
On Wednesday, selling activity affected nearly all key sectors of the S&P 500, although energy shares moved higher. The energy sector gained approximately 1.1%, making it the sole major sector to finish in positive territory. Apple experienced a slight decline of about 0.3% after unveiling its latest smartphone lineup. Meanwhile, Meta Platforms rose over 6% following the launch of new artificial intelligence features, while more declining stocks than advancing ones dominated the S&P 500 by a ratio of more than four to one.
Bond markets also showed signs of tightening financial conditions, as Treasury yields increased during Wednesday’s trading session. The benchmark 10-year U.S. Treasury yield reached its highest level since November 2023. The U.S. Treasury Department announced plans to purchase up to $6 billion of government bonds maturing in 10 to 20 years. Rising Treasury yields tend to make government securities more competitive for investors, as they offer income with lower risk compared to stocks.
Focus shifts to upcoming inflation data
Investors are also gearing up for two highly anticipated U.S. inflation reports scheduled ahead of the Federal Reserve’s September 15 to 16 meeting. Producer price data for August is expected Thursday, followed by consumer price figures on Friday. Market expectations suggest about a 60% chance of an interest rate hike at the Fed’s upcoming meeting. The central bank continues to monitor inflation and overall economic conditions while maintaining its focus on price stability.
Despite the recent two-day decline, major U.S. stock indexes still posted gains for 2026. The S&P 500 remained approximately 12% higher for the year after Wednesday’s close and stayed near its August high. The Nasdaq Composite maintained a gain of around 13%, while the Dow was roughly 9% above its starting point. Trading volume on Wednesday reached approximately 14.7 billion shares, slightly below the recent 20-session average of about 14.9 billion shares.