NEW YORK (Diya TV) — U.S. stocks fell Wednesday as Brent crude climbed above $100 a barrel amid renewed fighting between the United States and Iran, raising concerns about energy supplies and inflation.
The Dow Jones Industrial Average fell about 0.8%, while the S&P 500 declined 0.5% and the Nasdaq Composite lost 0.6% in Wednesday trading. Energy was the only S&P 500 sector trading higher.
Brent crude rose more than 3% to around $101 a barrel, crossing $100 for the first time since late July. U.S. West Texas Intermediate crude climbed to about $96 a barrel.
Oil prices rose after an escalation in attacks involving U.S. and Iranian forces. The United States disabled five Iran-linked oil tankers, while Iran attacked several vessels near the Strait of Hormuz, according to Reuters. Shipping through the strait remains well below normal levels.
The Strait of Hormuz is a major route for global energy shipments. Disruptions since the conflict began have reduced Middle Eastern oil exports and contributed to higher crude and refined fuel prices.
U.S. gasoline prices averaged about $4.22 a gallon Wednesday, up from about $3.19 a year earlier, according to AAA. The national average for diesel reached about $5.94 a gallon, a record in AAA’s data.
Higher energy costs have increased concerns about inflation ahead of next week’s Federal Reserve meeting. A Reuters poll found most economists expect the Fed to keep its benchmark rate at 3.50% to 3.75%, although a growing number expect at least one rate increase before the end of the year.
Investors are also awaiting new inflation data. The Labor Department is scheduled to release the August Producer Price Index on Thursday and the Consumer Price Index on Friday.
Treasury yields also rose Wednesday, with the benchmark 10-year yield reaching about 4.85%, its highest level since November 2023. Higher bond yields added pressure to stocks.
Meta Platforms was among the exceptions to the broader market decline, rising nearly 6% after launching Muse, an artificial intelligence assistant that can perform tasks including sending emails and booking travel.
