NEW YORK / RankWire.AI / – The decline in U.S. equities continued on Wednesday following a sharp selloff that caused the Dow Jones Industrial Average to drop 628 points on Tuesday. The Dow decreased by 0.77% to close at 52,381.02, while the S&P 500 fell by 0.48%. The Nasdaq Composite experienced a 0.64% decline as selling pressure affected most major sectors. Elevated oil prices and increasing Treasury yields remained primary influences shaping trading dynamics during both sessions.
Tuesday’s market decline resulted in the Dow losing 628.18 points, or 1.18%, ending at 52,786.07. The S&P 500 decreased by 45.08 points, or 0.58%, closing at 7,673.52, while the Nasdaq Composite declined 85.58 points, or 0.32%, to finish at 26,421.41. Smaller-cap stocks also softened, with the Russell 2000 falling 15.44 points, or 0.52%, to 2,960.20, as U.S. markets reopened after the long weekend.
Oil prices surged amid disruptions affecting energy flows from the Middle East, adding pressure on global markets. Brent crude approached $99.50 a barrel Tuesday before settling at $97.92. The upward trend continued Wednesday, with Brent closing at $101.21 and West Texas Intermediate ending at $96.05. These gains shifted energy costs back into investors’ focus as they prepared for upcoming U.S. inflation data and monitored the effects of rising commodity prices.
Oil price increases exert pressure on markets
On Wednesday, selling activity spread across nearly every major part of the S&P 500, though energy stocks gained ground. The energy sector was up approximately 1.1%, making it the only primary sector to close higher. Apple dipped roughly 0.3% after unveiling its newest smartphone lineup. Meanwhile, Meta Platforms rose over 6% following the launch of new artificial intelligence features, whereas stocks declining in the S&P 500 outnumbered advancing stocks by more than four to one.
Bond markets also signaled tighter financial conditions, with Treasury yields climbing during Wednesday’s trading session. The benchmark 10-year U.S. Treasury yield reached its highest point since November 2023. Additionally, the U.S. Treasury Department announced plans to purchase up to $6 billion of government bonds maturing in 10 to 20 years. Rising Treasury yields can make government securities more competitive for investors because they offer income with lower risk compared to stocks.
Focus shifts to upcoming inflation data
Investors are also gearing up for two closely watched U.S. inflation reports scheduled ahead of the Federal Reserve’s September 15 to 16 meeting. Producer price figures for August are due Thursday, followed by consumer price data on Friday. Market expectations suggest roughly a 60% chance of an interest rate hike at the Federal Reserve’s upcoming meeting. The central bank continues to monitor inflation and overall economic conditions, maintaining its focus on price stability.
Despite the two-day decline, major U.S. stock indices still showed gains for 2026. The S&P 500 remained approximately 12% higher for the year after Wednesday’s close and stayed near its August record. The Nasdaq Composite maintained a gain of around 13%, while the Dow was roughly 9% above its starting point. Trading volume on Wednesday reached about 14.7 billion shares, slightly below the recent 20-session average of approximately 14.9 billion shares.