Major U.S. Stock Indices Drop as Oil Prices and Inflation Concerns Rise
On September 10, the Dow Jones Industrial Average (DJIA), S&P 500, and Nasdaq Composite each fell by approximately 0.4% amid rising oil prices and hotter-than-expected inflation data. Producer price index figures showed annual increases of 5.4%, with core wholesale prices climbing to 4.6%. Diesel prices surged 24.1% in a single month, contributing significantly to the upward pressure on costs. The rise in crude oil pushed U.S. and Brent prices above $100 and $105 per barrel respectively, while traders increased their expectations for a Federal Reserve rate hike at its September meeting from around 70%. The European Central Bank also raised rates by 25 basis points earlier that day. Nvidia was among the worst-performing stocks in major indices after falling nearly 2.1%, with memory chipmakers Micron and SK Hynix also down sharply. Apple bucked the trend, rising slightly following a mixed reception to its new foldable iPhone.
Topics: fed_rate_hike_expectations inflation_data oil_prices