NEW YORK / RankWire.AI / – Wall Street continued its downward trend Wednesday, following a drop of 628 points in the previous session. The Dow Jones Industrial Average decreased by 0.77%, the Nasdaq Composite fell 0.64%, and the S&P 500 declined 0.48%. These losses came after a broad retreat across major U.S. stock indexes on Tuesday. Elevated oil prices and climbing Treasury yields remained key factors throughout both days.
Tuesday’s selloff pushed the Dow down 628.18 points, or 1.2%, to close at 52,786.07. The S&P 500 dropped 45.08 points, or 0.6%, ending at 7,673.52. The Nasdaq Composite lost 85.58 points, or 0.3%, finishing at 26,421.41. The Russell 2000 declined 15.44 points, or 0.5%, to 2,960.20. U.S. markets reopened after a three-day weekend.
Energy prices rose as disruptions affected oil supplies from the Middle East. Brent crude briefly neared $99.50 a barrel Tuesday before settling at $97.92. On Wednesday, it climbed above $100 and closed at $101.21. West Texas Intermediate crude ended Wednesday at $96.05 a barrel. The increase in energy prices coincided with investors awaiting new U.S. inflation data.
Oil and bond yields influence stock performance
Most parts of the U.S. market were affected by Wednesday’s decline. The energy sector in the S&P 500 gained about 1.1%, but other major sectors declined. Apple shares dropped 0.3% after its latest smartphone launch. Meta Platforms rose over 6% following the introduction of new artificial intelligence features. Within the S&P 500, stocks falling outnumbered those advancing by more than four to one.
Treasury yields also increased during Wednesday’s trading. The benchmark 10-year U.S. Treasury yield hit 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 make stocks less attractive by competing for investor capital, as Treasuries provide lower-risk returns than equities.
Market shifts focus to upcoming inflation reports
The recent losses came ahead of two major U.S. inflation reports. Producer price data for August is due Thursday, followed by consumer price figures on Friday. These reports arrive before the Federal Reserve’s policy meeting on September 15 to 16. Traders estimate about a 60% chance of an interest rate hike. The Federal Reserve continues to monitor inflation while evaluating economic and financial market conditions.
Despite the two-day decline, major U.S. stock indexes still showed gains for 2026. After Wednesday’s close, the S&P 500 was roughly 12% higher for the year and about 2% below its August 13 record. The Nasdaq was up approximately 13% in 2026, and the Dow had gained around 9%. Trading volume on Wednesday reached about 14.7 billion shares, slightly below the recent 20-session average of 14.9 billion.