NEW YORK / RankWire.AI / – Following a significant drop in the previous session, Wall Street extended its downward trend on Wednesday, with the Dow Jones Industrial Average decreasing by 628 points in the prior trading day. The index continued to decline, dropping another 0.77%, while the Nasdaq Composite fell 0.64% and the S&P 500 decreased by 0.48%. These losses reflected a broad-based retreat across major U.S. stock indices on Tuesday. Central to the decline were rising oil prices and increased Treasury yields, which played significant roles in both sessions.
Tuesday’s trading session saw the Dow plunge 628.18 points, representing a 1.2% decrease to 52,786.07. The S&P 500 declined 45.08 points, or 0.6%, ending at 7,673.52. The Nasdaq Composite lost 85.58 points, or 0.3%, closing at 26,421.41. Additionally, the Russell 2000 fell by 15.44 points, or 0.5%, to 2,960.20. The markets reopened after a three-day weekend, contributing to the trading activity.
Energy prices rose as disruptions impacted oil shipments from the Middle East. On Tuesday, Brent crude briefly neared $99.50 per barrel before settling at $97.92. On Wednesday, the benchmark surpassed $100 and ended the day at $101.21. Meanwhile, West Texas Intermediate crude finished Wednesday trading at $96.05 a barrel. The surge in energy costs coincided with investor anticipation for new U.S. inflation data, which influenced market sentiment.
Rising oil prices and bond yields exert pressure on equities
The decline observed on Wednesday impacted most sectors within the U.S. market. The energy sector within the S&P 500 gained roughly 1.1%, but all other major sectors ended the day lower. Shares of Apple dropped 0.3% following the launch of its latest smartphone model. Conversely, Meta Platforms rose more than 6% after unveiling new artificial intelligence features. Within the S&P 500, stocks that declined outnumbered advancers by more than four to one.
In addition, Treasury yields increased throughout Wednesday’s trading. The benchmark 10-year U.S. Treasury yield reached its highest point since November 2023. The U.S. Treasury Department also announced plans to purchase up to $6 billion in government bonds with maturities between 10 and 20 years. Rising bond yields make equities less attractive by increasing competition for investor capital, as Treasuries typically offer lower-risk returns.
Market focus shifts to upcoming inflation reports
These latest losses occurred ahead of two key U.S. inflation reports scheduled for Thursday and Friday—producer price data for August and consumer price figures, respectively. Both reports precede the Federal Reserve’s policy meeting set for September 15 to 16. Investors are currently pricing in approximately a 60% chance of an interest rate hike, as the Federal Reserve continues to monitor inflation alongside economic conditions and financial market developments.
Despite the two-day downturn, major U.S. stock indexes remain in positive territory for 2026. After Wednesday’s close, the S&P 500 was up about 12% for the year and roughly 2% below its record close on August 13. The Nasdaq was approximately 13% higher in 2026, while the Dow had gained about 9%. Trading volume on Wednesday reached around 14.7 billion shares, slightly below the recent 20-session average of 14.9 billion.