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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 took a header of 316.2 points to 52,064.46.
The S&P 500 sank 44.57 points to 7,581.79
The NASDAQ Composite retreated 171.62 points to 26,081.73.
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 closed at $102.48, up 6.7%, the highest close since May 19.
Since the Iran war began at the end of February, WTI is up 52.9%, and it’s up by 78.47% year-to-date. Futures for the international benchmark Brent crude for November delivery spiked above $105 a barrel during the trading day.
The jump in oil prices pushed the 10-year Treasury yield above 4.945%, the highest level since at least October 2023.
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.
High beta chip stocks that have led the bull market traded lower on fears higher rates and oil could slow the economy. Intel and Micron Technology both fell 5%.
Prices for the 10-year Treasury descended, raising yields to 4.95% from Wednesday’s 4.84%. Treasury prices and yields move in opposite directions.
Oil prices added $6.58 to $102.63 U.S. a barrel.
Gold prices jettisoned $98.90 to $4,361.80 U.S. an ounce.
Dow Records 4-Day Drop
