The Nasdaq fell 0.9% in early Thursday trade, the worst performer among major U.S. indexes as oil prices surged and a hotter-than-expected wholesale inflation reading pushed Treasury yields higher. Apple bucked the sell-off, rallying 1% after unveiling new iPhone models, while Nvidia and TSMC declined.
Oil prices kept surging Thursday, sending investors into a risk-off mode and casting major indexes lower for the fourth continuous day. An unexpected reading of wholesale inflation added to the pressure as yields climbed.
Tech-Heavy Index Leads Losses
In early trade, the Nasdaq fell 0.9%, bearing the worst of the sell-off. The Dow Jones Industrial Average fell 0.6% while the S&P 500 dropped 0.7%, and the small-cap Russell 2000 traded 0.7% lower. All three major indexes are on track for a fourth straight day of losses.
Oil and Yields Surge
West Texas Intermediate crude futures advanced to around $99.25 a barrel while Brent futures topped $104. The 10-year Treasury yield jumped eight basis points to 4.92%, and bitcoin fell to roughly $77,000.
Early Thursday, the Labor Department said the producer price index rose 0.4% in August, matching estimates, with a 5.4% annual increase, slightly hotter than expected. The core PPI, which strips out food and energy, rose 0.2% with a 4.6% year-over-year increase, in line with forecasts.
Apple Gains, Chipmakers Slip
Apple rallied 1% after its product launch event, the first under new Chief Executive John Ternus, unveiling the iPhone 18 Pro, iPhone 18 Pro Max and its first foldable model, the iPhone Duo. Needham analysts, however, see the new high-end releases as inadequate to trigger a replacement cycle, and do not expect the foldable to grab significant market share.
Elsewhere, Nvidia stock fell 0.6% Thursday morning, threatening to extend its losing streak to three sessions. TSMC shares declined nearly 1% premarket even after posting August revenue of $16.35 billion, up more than 53% versus the year-ago period.
Source: Investor's Business Daily
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