Rising energy costs and surging bond yields drive a four-day losing streak for major U.S. indices, with Brent crude hitting multi-month highs on geopolitical instability.
Light sweet crude surged above $103 to its highest since May 19 due to Middle East tensions and supply disruption fears.
Brent crude settled at $107.63, a multi-month high, driven by Houthi rebel attacks on Saudi port facilities threatening oil flows.
The 10-year Treasury yield hit a 52-week high of 4.963%, lifting mortgage rates and signaling rising bond market stress.
The S&P 500 dropped 45 points, pressured by soaring oil and higher bond yields, with September historically weak for stocks.
The Dow fell 317 points as rising energy costs and interest rates squeezed equities, contributing to a 2.1% September decline.
The Nasdaq Composite lost 172 points, reflecting broad market weakness from oil-driven inflation fears and higher rates.
Global markets face mounting pressure as Brent crude surges to $107.63 per barrel amid escalating Middle East tensions. The resulting inflationary spike has pushed the 10-year Treasury yield to a 52-week high of 4.96%, triggering a broad sell-off across the S&P 500, Dow, and Nasdaq as investors brace for a historically volatile September.
Rising oil prices fuel inflation fears, which forces bond yields higher as investors demand more compensation for long-term debt. Higher yields increase borrowing costs for consumers and businesses, compressing corporate margins and reducing equity valuations.