Wall Street Slumps for 4th Day Amid Surging Oil Prices and Spike in Treasury Yields

The three major New York stock indices fell for a fourth consecutive day on the 10th (local time) amid soaring international oil prices and a sharp surge in U.S. Treasury yields.

On this day, the Dow Jones Industrial Average closed down 316.56 points (0.60%) at 52,064.10.

The S&P 500 index fell 44.66 points (0.58%) to 7,591.70, while the tech-heavy Nasdaq Composite dropped 171.62 points (0.65%) to close at 26,081.72.

Selling pressure concentrated on tech stocks, which are sensitive to high interest rates.

Nvidia fell 2.26%, and Micron Technology dropped 4.90%.

Intel also tumbled nearly 6%.

Concerns over a prolonged war between the U.S. and Iran and potential disruptions in crude oil supplies are weighing heavily on investor sentiment.

WTI futures for October delivery rose 6.43 dollars (6.69%) to settle at 102.48 dollars per barrel, while Brent crude for November delivery increased 6.42 dollars (6.34%) to close at 107.63 dollars.

Both benchmarks reached their highest prices since May 19.

WTI recorded an eight-day winning streak, marking its longest consecutive rise in three years.

The sharp rise in international oil prices heightened inflation anxieties, while surging U.S. Treasury yields acted as another downward factor for the stock market.

On this day, the yield on the 10-year U.S. Treasury note surpassed 4.95% during trading, reaching its highest level since October 2023.

Some in the market project that the 10-year yield could test the 5% threshold.

The 30-year Treasury yield rose 7.5 basis points to finish at 5.360%, recording its highest closing level since June 29, 2004.

The 2-year Treasury yield, which is sensitive to monetary policy, jumped 12.2 basis points to 4.548%, marking its largest increase since March and hitting a two-year high.

The U.S. Producer Price Index (PPI) for August, released on the morning of this day, also maintained an upward trend, further fueling inflation worries.

The U.S. Bureau of Labor Statistics reported that the August U.S. PPI rose 0.4% from the previous month and 5.4% from the same month last year.

The impact of rising energy prices was particularly notable, with diesel prices surging 24.1% month-on-month.

Following the data release, expectations gained further ground that the U.S. Federal Reserve might raise interest rates at next week's Federal Open Market Committee (FOMC) meeting.

Bill Adams, chief U.S. economist at Fifth Third Commercial Bank, said in an email commentary, "The spike in energy prices in September makes it likely to tip the scales toward a rate hike at next week's Fed meeting."

Concerns are also growing that the U.S.-Iran war may not end in the short term.

The Wall Street Journal (WSJ) reported that senior aides to President Trump are internally reviewing the possibility that the war with Iran could extend until 2029, near the end of his term.

(Photo: Getty Images)
※ Please note: This article was translated by AI and may contain errors.