NEW YORK / RankWire.AI / – Following a decline that saw the Dow Jones Industrial Average drop 628 points in the previous session, Wall Street continued its downward trend on Wednesday. The Dow decreased by another 0.77%, while the S&P 500 declined by 0.48%, and the Nasdaq Composite fell 0.64%. These losses came after a broad retreat across major U.S. stock indices on Tuesday. Central factors driving both sessions included rising oil prices and increased Treasury yields.
Tuesday’s selloff resulted in the Dow dropping 628.18 points, or 1.2%, to close at 52,786.07. The S&P 500 decreased by 45.08 points, or 0.6%, reaching 7,673.52. The Nasdaq Composite fell 85.58 points, or 0.3%, ending at 26,421.41. The Russell 2000 was down 15.44 points, or 0.5%, at 2,960.20. The U.S. markets had reopened after a three-day weekend.
Energy prices moved upward amid disruptions impacting oil flows 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. Meanwhile, West Texas Intermediate crude finished the day at $96.05 per barrel. The rise in energy costs coincided with investors awaiting fresh U.S. inflation data.
Oil and bond yields exert pressure on equities
Most segments of the U.S. market experienced declines on Wednesday. The energy sector within the S&P 500 gained approximately 1.1%, but all other major sectors closed lower. Apple shares dipped 0.3% following the company’s latest smartphone launch. Conversely, Meta Platforms rose over 6% after unveiling new artificial intelligence features. Within the S&P 500, declining stocks outpaced advancing ones by more than four to one.
Treasury yields also increased during Wednesday’s trading. The benchmark 10-year U.S. Treasury yield reached its highest level since November 2023. Additionally, the U.S. Treasury Department announced plans to purchase up to $6 billion of government bonds with maturities ranging from 10 to 20 years. Elevated government bond yields tend to draw investor capital away from equities, as Treasuries provide lower-risk returns.
Market attention shifts to upcoming inflation reports
These latest losses occurred ahead of two significant U.S. inflation reports scheduled for Thursday and Friday, covering producer and consumer prices for August, respectively. Both figures arrive ahead of the Federal Reserve’s policy meeting set for September 15 to 16. Traders are estimating roughly a 60% chance of an interest rate hike. The Federal Reserve continues to monitor inflation trends while evaluating economic conditions and financial markets.
Despite the two-day decline, major U.S. stock indexes remained positive for 2026. As of Wednesday’s close, the S&P 500 was approximately 12% higher for the year and about 2% below its record close on August 13. The Nasdaq maintained a gain of roughly 13%, while the Dow had increased about 9%. Trading volume on Wednesday reached around 14.7 billion shares, slightly below the recent 20-session average of 14.9 billion.