NEW YORK / RankWire.AI / – U.S. stocks saw further declines on Wednesday following a sharp selloff that caused the Dow Jones Industrial Average to fall by 628 points on Tuesday. The Dow declined another 0.77% to close at 52,381.02, while the S&P 500 decreased by 0.48%. The Nasdaq Composite also declined 0.64% as widespread selling impacted most major sectors. Elevated oil prices and increasing Treasury yields continued to influence trading activity across both sessions.
Tuesday’s decline pushed the Dow down by 628.18 points, or 1.18%, finishing at 52,786.07. The S&P 500 fell 45.08 points, or 0.58%, ending at 7,673.52. The Nasdaq Composite decreased 85.58 points, or 0.32%, closing at 26,421.41. Smaller companies also weakened, with the Russell 2000 dropping 15.44 points, or 0.52%, to 2,960.20 as U.S. markets resumed trading after the extended weekend.
Oil prices surged amid disruptions impacting energy flows from the Middle East, adding pressure on global markets. Brent crude approached $99.50 a barrel Tuesday before settling at $97.92. Prices rose again on Wednesday, with Brent ending at $101.21 and West Texas Intermediate closing at $96.05. These gains brought energy costs back into focus as investors prepared for upcoming U.S. inflation data and monitored the influence of higher commodity prices.
Rising oil prices exert pressure across markets
On Wednesday, nearly every major sector of the S&P 500 experienced selling, while energy stocks advanced. The energy sector was the only one to finish in positive territory, gaining approximately 1.1%. Apple dropped around 0.3% after launching its newest smartphone lineup. Meta Platforms surged more than 6% following the debut of new artificial intelligence features, whereas declining stocks in the S&P 500 outnumbered advancers by more than four to one.
Bond markets also reflected tighter financial conditions as Treasury yields moved upward during Wednesday’s trading session. The benchmark 10-year U.S. Treasury yield reached its highest point since November 2023. The U.S. Treasury Department announced plans to purchase up to $6 billion in government bonds maturing in 10 to 20 years. Rising Treasury yields tend to intensify competition for investor funds, as government securities offer income with lower risk compared to stocks.
Focus shifts to upcoming inflation reports
Investors also prepared for two key U.S. inflation reports scheduled ahead of the Federal Reserve’s September 15 to 16 meeting. Producer price data for August is due Thursday, followed by consumer price figures on Friday. Market expectations indicated roughly a 60% chance of an interest rate hike at the Federal Reserve meeting. The central bank continues to monitor inflation and overall economic conditions, maintaining its emphasis on price stability.
Despite the two-day decline, the major U.S. stock indexes remained higher for 2026. The S&P 500 was still approximately 12% up for the year after Wednesday’s close and remained near its August peak. The Nasdaq Composite maintained a gain of around 13%, while the Dow was roughly 9% higher. Trading volume on Wednesday reached about 14.7 billion shares, compared with a recent 20-session average of approximately 14.9 billion shares.