US Stocks Slide Fourth Straight Day on Rising Oil Prices, Treasury Yields
US stocks declined for a fourth consecutive day on Thursday, marking their longest losing streak since June. The S&P 500 Index dropped 0.6% to its lowest level since July, while the Nasdaq 100 Index shed 1.1%. The decline was driven by rising oil prices and Treasury yields, which surged across maturities with 10-year rates topping 4.9%, a multiyear high.
The US producer price index rose 0.4% in August from July, the most since May. European Central Bank President Christine Lagarde said the region's inflation would remain well above target into 2027. Economists noted that this points to a possible global central bank rate-hike cycle, which does not support risk assets.
Investors will look next to Friday's report on US consumer prices, which will help set expectations for next week's Fed decision. Traders boosted expectations for a hike next week to about 70% and fully priced in a move by October. Higher borrowing costs are a headwind for equities, particularly growth shares with lofty valuations.