The Dow, S&P 500 and Nasdaq fell for a fourth straight session Thursday as oil prices surged past $100 a barrel and the 10-year Treasury yield climbed to its highest level since 2023. Nvidia led blue chips lower after unveiling a new partnership with Palantir, while investors braced for Friday's consumer price report.
The Dow Jones Industrial Average fell 0.6% around midday Thursday, marking a fourth consecutive day of declines. The S&P 500 dropped 0.5%, the Nasdaq composite gave back 0.5%, and the small-cap Russell 2000 index moved down 0.8%.
Oil Surge Deepens Inflation Fears
Stocks fell after U.S. oil prices topped $100 a barrel, as the war between the U.S. and Iran stretched into a seventh month. West Texas Intermediate crude moved above $101 a barrel, a near-6% rise, while Brent crude rose nearly 6% to trade close to $107.
Earlier Thursday, the Labor Department said the producer price index rose 0.4% in August, with a 5.4% annual increase, slightly hotter than expected. Core PPI, which strips out food and energy, rose 0.2%, slightly cooler than estimates, with a 4.6% year-over-year increase in line with forecasts. The consumer price index for August is due Friday, with estimates pointing to a 0.4% monthly rise and 3.4% annually.
Treasury Yield Hits Highest Level Since 2023
The 10-year Treasury yield rose more than 8 basis points to 4.926%, its highest level since November 2023. The 2-year Treasury yield hit a high of 4.539%, its highest trading level since July 2024, as investors weighed the inflation outlook ahead of next week's Federal Reserve decision.
Risk assets retreated too: Bitcoin fell to roughly $76,900 as the same pressures weighed on equities.
Nvidia Leads Blue Chips Lower on Palantir Deal
Nvidia fell, leading Dow components lower after the chipmaker announced a partnership with Palantir to build an AI stack for supply-chain visibility. Nvidia slid roughly 2%, while Palantir fell more than 1%.
Among other Dow components, Amgen and Merck fell roughly 2% each, while Coca-Cola climbed 1%. Nearly two-thirds of Dow components traded in the red.
Sources: Investor's Business Daily, CNBC, CNBC
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