Key facts
- U.S. stocks closed lower as oil prices surged above $100 a barrel and Treasury yields rose.
- The S&P 500 fell 0.48%, the Nasdaq Composite declined 0.64%, and the Dow Jones Industrial Average dropped 0.77%.
- The 10-year U.S. Treasury note yield reached its highest level since November 2023.
- Apple shares declined 0.3% following its latest smartphone launch.
- Meta shares rose over 6% after launching its AI assistant.
- Traders are pricing in a 60% chance of a Federal Reserve rate hike at the upcoming policy meeting.
U.S. stocks closed lower on Wednesday as oil prices surged above $100 a barrel and Treasury yields rose ahead of crucial inflation data. Worries about the global oil supply and a flare-up in Middle East tensions pushed Brent crude above $100 a barrel, a level sensitive to the stock market. The S&P 500 energy index rose 1.1%, while all other sector indexes fell. Apple ended down 0.3% after its first smartphone launch under new CEO John Ternus. The yield on the benchmark 10-year U.S. Treasury note climbed to its highest since November 2023 after the Treasury Department announced it would buy up to $6 billion in 10- to 20-year government bonds. Higher yields on risk-free government bonds make stocks less attractive to investors. U.S. Producer Price Index data on Thursday and consumer price data on Friday will be closely watched for clues on the Federal Reserve's interest-rate path, with traders pricing in a 60% chance of a rate hike at the next policy meeting. The S&P 500 declined 0.48% to 7,636.46 points, the Nasdaq fell 0.64% to 26,253.34 points, and the Dow Jones Industrial Average dropped 0.77% to 52,381.02 points. Meta jumped over 6%, limiting the S&P 500's decline, after rolling out an AI assistant. Alphabet declined 2.3% after announcing a significant investment in AI infrastructure in Finland. The Philadelphia Semiconductor Index rose 0.37%, with Advanced Micro Devices gaining 3%. Dow fell 0.6% on a report about a potential exit from a partnership with Saudi Aramco. Declining stocks outnumbered rising ones within the S&P 500 by a 4.1-to-one ratio. Volume on U.S. exchanges was relatively light.
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