Stocks Slip for Third Day as Yields Near 5% and Oil Tops $100

U.S. stocks fell for a third straight session on Wednesday in New York trading. The Dow dropped 405.41 points to 52,380.66, the S&P 500 slipped 0.48% to 7,636.36 and the Nasdaq fell 0.64% to 26,253.34.

Rising Treasury yields and higher oil prices weighed on the market. The 10-year Treasury yield climbed to 4.84%, its highest level since November 2023, moving closer to 5%.

The Treasury Department announced a repurchase of longer-dated debt totaling $6 billion, triple the prior amount. The repurchase did not stop yields from rising. Some market participants had expected a larger buyback; market analyst Peter Boockvar reported investor estimates ranged from $7 billion to $8 billion.

Escalating tensions between the United States and Iran pushed oil higher. Brent crude rose 3.36% to $101.21 a barrel, its strongest close since May, and West Texas Intermediate gained 3.25% to $96.05. Traders cited concerns about potential disruptions to Middle East energy supplies.

Thomas Martin of Globalt Investments described the situation as ‘an unusual standoff in market sentiment,’ noting that equity sentiment and sentiment for higher interest rates were both at extremes and unlikely to persist together for long.

The losses followed the Dow’s worst single day in nearly three weeks on Tuesday. Market participants are watching upcoming economic data, Treasury operations and geopolitical developments for signs of how yields and energy prices will move.