Oil at $102.93 Drives US Stocks to Fourth Straight Loss
US equities fell as WTI crude surged 7.1% to $102.93, pushing the 10-year Treasury yield above 4.95%.
US stocks closed lower on Thursday. The decline followed a sharp rise in oil prices and bond yields. West Texas Intermediate crude settled at $102.93 per barrel. This represented a 7.1% increase for the day. The Dow Jones Industrial Average dropped 316.56 points. The index ended at 52,064.10. This marked the fourth consecutive daily loss for the market.
The S&P 500 fell 0.58% to 7,591.70. The Nasdaq Composite declined 0.65% to 26,081.72. Investor sentiment weakened as the US-Iran conflict entered its seventh month. Brent crude also rose 7% to $108.28. WTI prices have climbed 52.9% since the conflict began in late February. The annual increase stands at 78.5%.
Yields and Inflation Pressures Rise
Rising oil costs pushed the 10-year Treasury yield above 4.95%. This is the highest level since October 2023. Producer prices in the US accelerated in August. The annual rate rose to 5.4% from 4.8% in July. Energy prices climbed 4.2% during the month. Diesel fuel prices surged 24.1%. These factors suggest persistent inflationary pressure.
The CBOE Volatility Index increased 8.38% to 17.84. This metric tracks market fear levels. Higher borrowing costs and energy bills threaten economic activity. Tech shares faced significant pressure. Intel shares fell more than 5.5%. Micron Technology declined 4.9%. The Federal Reserve may need to adjust rates in response to these trends.
European Markets Mirror US Decline
European stocks also closed lower. The Stoxx Europe 600 index fell 0.69% to 635.97 points. The European Central Bank raised key policy rates by 25 basis points. Officials warned that geopolitical conflicts fuel inflation. Britain’s FTSE 100 dropped 0.57% to 10,608.92. Germany’s DAX 40 declined 0.84% to 25,361.15.
France’s CAC 40 lost 0.49% to 8,116.76. Italy’s FTSE MIB 30 edged down 0.13% to 51,807.40. Spain's IBEX 35 fell 0.18% to 19,659.80. Data from GN auto markets/commodities: silver prices highlights the broad impact of energy costs. The region faces similar inflationary headwinds as the US.
Geopolitical Conflict Drives Market Volatility
The US-Iran war remains a central driver of market moves. Oil supply risks continue to weigh on sentiment. Inflation data shows no sign of cooling. Technology and semiconductor sectors bear the brunt of cost pressures. The next Federal Reserve decision will be critical. Market participants watch for signs of easing or further tightening.
