NEW YORK / RankWire.AI / – Wall Street extended its decline Wednesday after the Dow Jones Industrial Average lost 628 points in the previous session. The Dow fell another 0.77%, while the S&P 500 dropped 0.48% and the Nasdaq Composite declined 0.64%. The losses followed a broad Tuesday retreat across major U.S. stock indexes. Rising oil prices and higher Treasury yields remained central factors across both sessions.
Tuesday’s selloff sent the Dow down 628.18 points, or 1.2%, to 52,786.07. The S&P 500 fell 45.08 points, or 0.6%, to 7,673.52. The Nasdaq Composite lost 85.58 points, or 0.3%, to 26,421.41. The Russell 2000 declined 15.44 points, or 0.5%, to 2,960.20. U.S. markets had reopened after a three-day weekend.
Energy prices moved higher as disruptions affected oil flows from the Middle East. Brent crude briefly approached $99.50 a barrel Tuesday before settling at $97.92. The benchmark then climbed above $100 on Wednesday and settled at $101.21. West Texas Intermediate crude finished Wednesday at $96.05 a barrel. The rise in energy prices came as investors awaited fresh U.S. inflation data.
Oil prices and bond yields pressure stocks
Wednesday’s decline reached most areas of the U.S. market. The S&P 500 energy sector gained about 1.1%, while every other major sector finished lower. Apple shares slipped 0.3% following the company’s latest smartphone launch. Meta Platforms rose more than 6% after introducing new artificial intelligence capabilities. Declining stocks outnumbered advancing shares within the S&P 500 by more than four to one.
Treasury yields also climbed during Wednesday trading. The benchmark 10-year U.S. Treasury yield reached its highest level since November 2023. The U.S. Treasury Department announced plans to buy up to $6 billion of government bonds with maturities between 10 and 20 years. Higher government bond yields increase competition for investor capital because Treasuries offer returns with lower risk than equities.
Inflation data moves into market focus
The latest losses came before two major U.S. inflation reports. Producer price data for August was scheduled for Thursday, followed by consumer price figures on Friday. Both releases arrive before the Federal Reserve’s September 15 to 16 policy meeting. Traders were pricing in roughly a 60% probability of an interest rate increase. The Federal Reserve has continued to monitor inflation while assessing economic conditions and financial markets.
Despite the two-day decline, major U.S. stock indexes remained higher for 2026. After Wednesday’s close, the S&P 500 was up about 12% for the year and roughly 2% below its August 13 record close. The Nasdaq remained up about 13% in 2026, while the Dow had gained about 9%. Trading volume reached about 14.7 billion shares Wednesday, slightly below the recent 20-session average of 14.9 billion.