Key facts
- US stock indexes opened lower on Thursday.
- Oil prices rose amid Middle East tensions.
- Treasury yields climbed.
- Investors are awaiting talks between Presidents Donald Trump and Xi Jinping.
- Federal Reserve Governor Michael Barr indicated further interest rate hikes are likely needed.
- Traders are pricing in a 71% chance the Fed will raise interest rates at its next policy meeting.
Wall Street's main stock indexes opened lower on Thursday. The Dow Jones Industrial Average fell 95.8 points, or 0.19%, to 51415.75. The S&P 500 dropped 39.0 points, or 0.51%, to 7666.99, and the Nasdaq Composite declined 201.5 points, or 0.75%, to 26734.508 at the opening bell.
Simmering Middle East tensions lifted oil prices, while Treasury yields also climbed. Investors exercised caution ahead of a summit between US President Donald Trump and Chinese President Xi Jinping. On Wednesday, Wall Street closed lower, pulled down by declines in Alphabet and Amazon. Treasury yields had climbed, with two-year yields touching their highest since 2024 and 10-year yields hitting their highest since 2007. Oil prices rose almost 4%. Federal Reserve Governor Michael Barr indicated further interest rate hikes are likely needed as inflation remains above the Fed's 2% target, leading traders to price in a 71% chance of a rate increase at the Fed's next policy meeting.