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S&P 500 lost 44.16 points, or 0.58%, to end at 7,592.20 points, while the Nasdaq Composite lost 167.15 points, or 0.64%, to 26,086.19. The Dow Jones Industrial Average fell 313.64 points, or 0.60%, to 52,067.02. Oil surge puts inflation back in focus Brent crude jumped 6% to $107 a barrel as supply routes through the Strait of Hormuz and the Red Sea were disrupted by the US-Israeli war on Iran. The surge in energy prices added to concerns that inflation could remain elevated and strengthened expectations for tighter monetary policy. Data showed the US producer price index rose in line with expectations in August on a monthly basis, driven partly by a rebound in energy product costs. Investors will now turn to Friday's consumer price data for further clues on the Fed's next move. Traders see a 70% chance of at least a 25-basis-point rate hike next week, up from about 64% before Thursday's data, according to the CME FedWatch tool. Rising yields weigh on stocks Treasury yields climbed sharply, with the 10-year yield reaching its highest level in nearly three years. The 30-year yield hit its highest in more than 19 years, while the 2-year yield reached its highest in more than two years. "Yields are going up at the short end of the curve because the Fed is probably going to hike in the next couple months. Yields are going up at the long end of the curve because of debt and deficit issues, and sticky inflation," Ross Mayfield, an investment strategy analyst at Baird, said. "Higher yields are a negative for the equity market. They lower valuations and they make it more expensive to operate a business, and more expensive for consumers to exist in the world." Heavyweight chipmakers Nvidia and Micron Technology weighed on the S&P 500, while Apple rallied a day after launching its $1,999 iPhone. The S&P 500 is now nearly 3% below its record closing high from August 13, though it remains up 11% in 2026. Its recent decline, alongside a strong earnings outlook, has pushed the benchmark to about 19 times expected earnings, its cheapest valuation since April 2025, Reuters reported. Macy's fell despite raising its annual forecasts, while American Eagle Outfitters dropped to its lowest level since October after reiterating its annual comparable-sales forecast amid uncertain discretionary spending. (Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times) (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
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