US stocks: S&P 500 ends down as oil tops US$100 per barrel

US STOCKS closed lower on Wednesday (Sep 9) as oil prices soared above US$100 a barrel, while Apple dipped and Treasury yields rose ahead of crucial inflation data expected later in the week.

Worries about the global oil supply and a flare-up in Middle East tensions pushed Brent crude above US$100 a barrel, a sensitive level for the stock market.

The US-Israeli war on Iran, now in its seventh month, has stoked fears of a broader regional conflict, with high oil prices fueling inflation.

The S&P 500 energy index rose 1.1 per cent, while all other sector indexes fell.

Apple ended down 0.3 per cent after it held its first smartphone launch under new CEO John Ternus.

The yield on the benchmark 10-year US Treasury note climbed to its highest since November 2023 after the Treasury Department said it would buy up to US$6 billion in 10- to 20-year government bonds. Some analysts had expected a larger purchase, in the range of US$8 billion to US$10 billion.

Higher yields on risk-free government bonds make it less attractive for investors to own stocks.

“That’s leaving markets a little concerned, particularly as we don’t have a lot to go on in terms of earnings expectations until we start to get into third-quarter reporting season,” said Rob Haworth, senior investment strategist at US Bank Wealth Management in Seattle.

US Producer Price Index data on Thursday and consumer price data on Friday will be in focus for clues on the Federal Reserve’s interest-rate path.

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Traders are pricing in a 60 per cent chance the Fed will raise interest rates at its policy meeting next week.

The S&P 500 declined 0.48 per cent to end the session at 7,636.46 points.

The Nasdaq declined 0.64 per cent to 26,253.34 points, while the Dow Jones Industrial Average declined 0.77 per cent to 52,381.02 points.

The S&P 500 is down around 2 per cent from its Aug 13 record high close, and it remains up about 12 per cent in 2026.

Meta jumped over 6 per cent and limited the S&P 500’s decline after the social media company rolled out a long-touted AI assistant that can autonomously send emails, sell a car or make travel bookings on behalf of users.

Alphabet declined 2.3 per cent after the Google parent said it would invest at least US$15.1 billion in AI infrastructure in Finland over the next two years, including a major deal for the supply of nuclear power.

The Philadelphia Semiconductor Index rose 0.37 per cent, with Advanced Micro Devices gaining 3 per cent.

Dow fell 0.6 per cent after Bloomberg News reported the chemicals maker was considering exiting its US$20 billion partnership with Saudi Aramco.

Declining stocks outnumbered rising ones within the S&P 500 by a 4.1-to-one ratio.

The S&P 500 posted seven new highs and 25 new lows; the Nasdaq recorded 41 new highs and 170 new lows.

Volume on US exchanges was relatively light, with 14.7 billion shares traded, compared to an average of 14.9 billion shares over the previous 20 sessions. REUTERS