Stocks Decline as Rising Crude Prices Heighten Fed Rate Hike Expectations
Major U.S. stock indexes closed lower on Thursday, with the S&P 500 and Dow Jones Industrials hitting a five-week low amid rising crude oil prices that are increasing inflation concerns. WTI crude surged over 6% to a three-and-a-half-month high due to fears of an extended US-Iran conflict, which has pushed global bond yields sharply higher. The U.S. August Producer Price Index (PPI) rose more than expected at +5.4% year-over-year and weekly jobless claims remained near record lows, signaling persistent inflationary pressures in the economy. The 10-year T-note yield climbed to a two-and-three-quarter-year high of 4.96%, while UK gilt yields hit a 19-year peak. The ongoing trade tensions between the U.S. and Canada also contributed to market unease, with both sides imposing retaliatory tariffs on each other’s goods.
Tickers: $SPGI
Topics: inflation_risks interest_rates oil_prices stock_indices