Traders at work at the New York Stock Exchange on August 25, 2026.
new york stock exchange
Stocks fell on Thursday after U.S. crude oil prices exceeded $100 per barrel amid growing concerns about rising inflation due to the prolonged war in the Middle East.
of Dow Jones Industrial Average It fell by 341 points (0.6%). of S&P500 While the decline was 0.5%, Nasdaq Composite It also fell by 0.5%.
As the war between the US and Iran continues into its seventh month, rising oil prices continue to weigh on sentiment. US West Texas Intermediate futures for October have exceeded $100 per barrel. Futures for Brent crude oil, the international benchmark, for November delivery soared above $105 a barrel.
Due to soaring oil prices, the yield on the 10-year U.S. Treasury bond has exceeded 4.9%, the highest level since November 2023.
High-beta chip stocks, which have led the bull market, fell on concerns that rising interest rates and oil could slow the economy. intel and micron technology Both fell 5%.
WTI, 1 day
A subdued overall inflation report did little to allay growing concerns over rising interest rates and oil prices. The producer price index, a measure of wholesale inflation, rose a seasonally adjusted 0.4% in August, in line with the Dow Jones consensus. On an annual basis, PPI was 5.4%, still well above the Fed’s inflation target of 2%.
The report was released ahead of Friday’s closely watched Consumer Price Index. Both numbers are reflected in the Fed’s main inflation measure, the Consumer Expenditure Price Index, which will not be released until after the Fed’s Sept. 16 interest rate vote.
“While the PPI announcement itself is not definitive and doesn’t really help resolve the Fed’s ‘hike or no rate hike’ question next week, WTI oil prices surging above $100 and US Treasury yields hitting new highs have certainly piqued investor interest ahead of tomorrow’s important CPI report,” said Stephen Coltman, head of macro at 21Shares.
The federal funds futures market last priced in a 74% chance of a quarter-point rate hike after next week’s meeting, according to the CME FedWatch tool.
Major stock averages are snapping a three-day slide after the Treasury announced it would buy back up to $6 billion in long-term government bonds, three times the normal amount. Less than a month later, the Treasury Department announced it would more than double the size of its $2 billion bond buyback.
—CNBC’s Jeff Cox and Spencer Kimball contributed to this report.
