NEW YORK / RankWire.AI / – U.S. stocks extended their decline Wednesday after a sharp selloff pushed the Dow Jones Industrial Average down 628 points Tuesday. The Dow fell another 0.77% to 52,381.02, while the S&P 500 lost 0.48%. The Nasdaq Composite declined 0.64% as selling spread across most major market sectors. Higher oil prices and rising Treasury yields remained key factors shaping trading across both sessions.
Tuesday’s retreat sent the Dow lower by 628.18 points, or 1.18%, to finish at 52,786.07. The S&P 500 dropped 45.08 points, or 0.58%, and closed at 7,673.52. The Nasdaq Composite lost 85.58 points, or 0.32%, to end at 26,421.41. Smaller companies also weakened, with the Russell 2000 falling 15.44 points, or 0.52%, to 2,960.20 as U.S. markets resumed trading after the long weekend.
Oil prices climbed as disruptions affected energy flows from the Middle East and added pressure to global markets. Brent crude approached $99.50 a barrel Tuesday before settling at $97.92. Prices advanced again Wednesday, with Brent closing at $101.21 and West Texas Intermediate ending at $96.05. The gains placed energy costs back in focus as investors prepared for new U.S. inflation figures and monitored the impact of higher commodity prices.
Oil gains add pressure across markets
Selling on Wednesday reached nearly every major area of the S&P 500, while energy shares moved higher. The energy sector gained about 1.1%, making it the only major sector to finish in positive territory. Apple slipped about 0.3% after introducing its latest smartphone lineup. Meta Platforms climbed more than 6% following the release of new artificial intelligence features, while declining S&P 500 stocks outnumbered advancing shares by more than four to one.
Bond markets also reflected tighter financial conditions as Treasury yields moved higher during Wednesday’s session. The benchmark 10-year U.S. Treasury yield reached its highest level since November 2023. The U.S. Treasury Department announced plans to purchase as much as $6 billion of government bonds maturing in 10 to 20 years. Higher Treasury yields can increase competition for investor funds because government securities offer income with lower risk than stocks.
Inflation reports take center stage
Investors were also preparing for two closely watched U.S. inflation reports scheduled before the Federal Reserve’s September 15 to 16 meeting. Producer price data for August was due Thursday, followed by consumer price figures Friday. Market pricing indicated roughly a 60% probability of an interest rate increase at the Federal Reserve meeting. The central bank has continued to track inflation and broader economic conditions while maintaining its focus on price stability.
Despite the latest two-session decline, the major U.S. stock indexes remained higher for 2026. The S&P 500 was still up about 12% for the year after Wednesday’s close and remained near its August record. The Nasdaq Composite retained a gain of about 13%, while the Dow remained roughly 9% higher. Trading volume reached about 14.7 billion shares Wednesday, compared with a recent 20-session average of approximately 14.9 billion shares.