Stocks slipped as oil prices jumped 3% on geopolitical conflict, forcing investors to recalibrate risk expectations amid renewed inflation concerns and rising bond yields.
Brent crude surged 3% to break above $100 for the first time since July following escalation in US-Iran tensions.
US West Texas Intermediate advanced roughly 3% to top $95, extending a two-day rally on geopolitical supply concerns.
European natural gas prices followed the rally, jumping 4% and approaching 79 euros a megawatt-hour.
The 10-year U.S. Treasury yield briefly topped 4.8% as oil's rise pressured bonds, though yields steadied on Wednesday.
The Dow fell 300 points as oil prices surged above $100 a barrel, raising inflation concerns and pushing the 10-year yield near 4.8%.
The S&P 500 declined 0.3% as oil-driven inflation fears weighed on equities.
The Nasdaq Composite slipped 0.5% amid rising oil prices and shifting investor focus to risk.
U.S. equities retreated Wednesday as Brent crude prices breached the $100-a-barrel threshold for the first time since July. The rally, fueled by escalating U.S.-Iran tensions, triggered inflation fears and pushed the 10-year Treasury yield toward 4.8%, weighing heavily on major market indices.
Oil prices are surging due to heightened geopolitical tensions between the U.S. and Iran, specifically following the sinking of Iranian tankers by American forces.
The surge in oil prices has reignited inflation concerns, leading to higher bond yields and a shift in investor focus toward risk, which has caused major indices like the Dow and S&P 500 to decline.