NEW YORK / RankWire.AI / – Wall Street extended its decline Wednesday after the Dow Jones Industrial Average lost 628 points in the previous session. The Dow fell another 0.77%, while the S&P 500 dropped 0.48% and the Nasdaq Composite declined 0.64%. The losses followed a broad Tuesday retreat across major U.S. stock indexes. Rising oil prices and higher Treasury yields remained central factors across both sessions.
Tuesday’s selloff caused the Dow to decrease by 628.18 points, or 1.2%, reaching 52,786.07. The S&P 500 fell 45.08 points, or 0.6%, closing at 7,673.52. The Nasdaq Composite declined 85.58 points, or 0.3%, ending at 26,421.41. The Russell 2000 dropped 15.44 points, or 0.5%, to 2,960.20. U.S. markets reopened after a three-day weekend.
Energy prices moved upward as disruptions impacted oil flow from the Middle East. Brent crude briefly neared $99.50 a barrel on Tuesday before settling at $97.92. On Wednesday, the benchmark surpassed $100 and closed at $101.21. West Texas Intermediate crude ended Wednesday at $96.05 a barrel. The increase in energy prices coincided with investors awaiting new U.S. inflation data.
Oil prices and bond yields exert pressure on equities
Wednesday’s decline affected most sectors of the U.S. market. The S&P 500 energy sector rose about 1.1%, while all other major sectors finished lower. Apple shares dropped 0.3% after the company launched its latest smartphone. Meta Platforms experienced a more than 6% increase following the announcement of new artificial intelligence features. Declining stocks outnumbered advancing stocks within the S&P 500 by over four to one.
During Wednesday’s trading, Treasury yields also increased. The benchmark 10-year U.S. Treasury yield reached its highest point since November 2023. The U.S. Treasury Department revealed plans to purchase up to $6 billion of government bonds with maturities between 10 and 20 years. Rising government bond yields make competing for investor capital more challenging, as Treasuries offer lower-risk returns compared to equities.
Market focus shifts to upcoming inflation reports
The recent losses occurred ahead of two key U.S. inflation reports. Producer price data for August was scheduled for Thursday, followed by consumer price figures on Friday. These releases come ahead of the Federal Reserve’s policy meeting scheduled for September 15 to 16. Traders are pricing in roughly a 60% probability of an interest rate hike. The Federal Reserve continues to monitor inflation levels while evaluating economic conditions and financial markets.
Despite the two-day decline, major U.S. stock indexes remained higher for 2026. After Wednesday’s close, the S&P 500 was up about 12% for the year and approximately 2% below its record close on August 13. The Nasdaq gained roughly 13%, while the Dow increased about 9%. Trading volume on Wednesday reached approximately 14.7 billion shares, slightly below the recent 20-session average of 14.9 billion.