Stocks dropped Thursday after U.S. oil prices topped $100 a barrel, amid growing fears of higher inflation from a prolonged war in the Middle East.
The Dow Jones Industrials dipped 161.51 points to 52,219.15.
The S&P 500 sank 40.97 points to 7,596.85
The NASDAQ Composite retreated 190.52 points to 26,062.82.
Higher oil prices continued to weigh on sentiment, as the war between the U.S. and Iran stretched into a seventh month. U.S. West Texas Intermediate futures for October jumped above $100 per barrel. Futures for the international benchmark Brent crude for November delivery spiked above $105 a barrel.
The jump in oil prices pushed the 10-year Treasury yield above 4.9%, the highest level since November 2023.
High beta chip stocks that have led the bull market traded lower on fears higher rates and oil could slow the economy. Intel decreased 3% and Micron Technology fell 2%.
The major averages are coming off a three-day slide, after the Treasury Department said it would buy back up to $6 billion in longer-term debt – triple the usual amount. Less than a month ago, the Treasury said it would more than double the size of its $2-billion government debt repurchases.
Prices for the 10-year Treasury were lower, raising yields to 4.92% from Wednesday’s 4.84%. Treasury prices and yields move in opposite directions.
Oil prices added $3.63 to $99.68 U.S. a barrel.
Gold prices slid $54.60 to $4,406.10 U.S. an ounce.
