NEW YORK / RankWire.AI / – U.S. stocks continued their downward trend on Wednesday after a sharp selloff on Tuesday that saw the Dow Jones Industrial Average decrease by 628 points. The index dropped another 0.77% to close at 52,381.02, while the S&P 500 declined by 0.48%. The Nasdaq Composite fell 0.64%, with selling activity spreading across most key sectors of the market. Elevated oil prices and increasing Treasury yields persisted as influential factors influencing trading activity across both days.
Tuesday’s decline saw the Dow dip by 628.18 points, or 1.18%, ending at 52,786.07. The S&P 500 decreased by 45.08 points, or 0.58%, closing at 7,673.52. The Nasdaq Composite lost 85.58 points, or 0.32%, finishing at 26,421.41. Smaller stocks 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 extended weekend.
Oil prices increased amid disruptions to energy flows from the Middle East, adding pressure on global markets. Brent crude approached $99.50 a barrel Tuesday before settling at $97.92. Prices rose again on Wednesday, with Brent closing at $101.21 and West Texas Intermediate ending at $96.05. These gains shifted energy costs back into focus as investors awaited new U.S. inflation data and monitored the effects of rising commodity prices.
Energy Price Gains Exert Pressure on Markets
On Wednesday, selling affected nearly all major sectors of the S&P 500, while energy stocks moved higher. The energy sector increased approximately 1.1%, making it the sole large sector to close in positive territory. Apple experienced a slight decline of about 0.3% after unveiling its latest smartphone lineup. Meanwhile, Meta Platforms surged over 6% following the launch of new artificial intelligence features, whereas declining stocks outnumbered advancers by more than four to one in the S&P 500.
Bond markets also reflected tighter financial conditions, with Treasury yields rising during Wednesday’s trading session. The benchmark 10-year U.S. Treasury yield reached its highest point since November 2023. The U.S. Treasury Department announced plans to purchase up to $6 billion of government bonds maturing in 10 to 20 years. Rising Treasury yields tend to increase competition for investor funds, as government securities typically offer safer income compared to stocks.
Inflation Data Dominates Market Attention
Investors also prepared for two key U.S. inflation reports scheduled before the Federal Reserve’s September 15 to 16 meeting. Producer price figures for August are due Thursday, followed by consumer price data on Friday. Market pricing suggests about a 60% chance of a rate hike at the Federal Reserve’s upcoming meeting. The central bank continues to monitor inflation and economic conditions while maintaining its emphasis on price stability.
Despite recent two-day declines, major U.S. stock indexes still posted gains for 2026. The S&P 500 remained roughly 12% higher for the year after Wednesday’s close and stayed near its August record. The Nasdaq Composite maintained a gain of approximately 13%, while the Dow was roughly 9% above its starting point. Trading volume on Wednesday reached about 14.7 billion shares, compared with an average of around 14.9 billion shares over the last 20 sessions.