NEW YORK / RankWire.AI / – Wall Street continued its downward trend on Wednesday after the previous session saw the Dow Jones Industrial Average drop by 628 points. The index declined another 0.77%, with the Nasdaq Composite falling 0.64% and the S&P 500 dropping 0.48%. These losses followed a broad decline across major U.S. stock indexes on Tuesday, driven largely by rising oil prices and increasing Treasury yields, which remained key factors across both days.
Tuesday’s selloff pushed the Dow down 628.18 points, or 1.2%, to close at 52,786.07, while the S&P 500 fell 45.08 points, or 0.6%, ending at 7,673.52. The Nasdaq Composite declined 85.58 points, or 0.3%, to 26,421.41, and the Russell 2000 dropped 15.44 points, or 0.5%, finishing at 2,960.20. The markets reopened after a three-day weekend, adding context to the recent volatility.
Energy prices surged amid disruptions impacting oil shipments from the Middle East. Brent crude briefly neared $99.50 a barrel on Tuesday before settling at $97.92, then surged past $100 on Wednesday, ending at $101.21. Meanwhile, West Texas Intermediate crude settled at $96.05 a barrel on Wednesday. The climb in energy costs coincided with investor anticipation of new U.S. inflation data, as investors remained cautious.
Oil and bond yields exert pressure on equities
The decline on Wednesday affected most sectors of the U.S. stock market, with the S&P 500 energy sector gaining about 1.1%, but all other major sectors ended lower. Apple’s shares slipped 0.3% after launching its latest smartphone, while Meta Platforms increased over 6% following the announcement of new artificial intelligence features. Within the S&P 500, declining stocks outnumbered advancers by more than four to one.
Treasury yields also moved upward during Wednesday’s trading, with the benchmark 10-year U.S. Treasury yield reaching its highest level since November 2023. The U.S. Treasury Department announced plans to purchase up to $6 billion of government bonds with maturities between 10 and 20 years. Rising bond yields tend to attract investors away from equities because Treasuries provide lower-risk returns, increasing competition for capital.
Market focus shifts to upcoming inflation reports
The recent losses came ahead of two significant U.S. inflation reports scheduled for Thursday and Friday, with producer price data for August and consumer price figures, respectively. These reports precede the Federal Reserve’s policy meeting on September 15 to 16. Traders are pricing in roughly a 60% chance of an interest rate hike. The Fed continues to monitor inflation while evaluating economic conditions and financial markets.
Despite the two-day decline, major U.S. stock indexes remain 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 was up approximately 13%, and 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.