Wall Street Falls as Oil Prices Surge Amid Middle East Tensions
US stocks declined on Wednesday as Treasury yields rose and Iran's president vowed not to surrender to US pressure. The S&P 500 fell by 0.75%, while the Nasdaq dropped 1.13% and the Dow Jones Industrial Average declined 0.68%. Oil prices surged almost 4% after Iranian President Masoud Pezeshkian's speech at the UN, but this did not stop US business activity from reaching a more than five-year high in September, pushing government bond yields higher.
The Federal Reserve is now expected to raise interest rates at its October meeting, with traders pricing in a 71% chance of such a move. This would be on the back of inflation remaining above the Fed's 2% target, as stated by Federal Reserve Governor Michael Barr. The S&P 500 energy sector index rallied after President Pezeshkian's speech, but Alphabet and Amazon led the decline in Wall Street.
META Platforms rose 1%, its third day of gains this week following a strong reception to its 'Muse' AI assistant. However, Google parent Alphabet fell by 3.8% and Amazon dropped 2.2%, as they have blocked the AI assistant from their shopping platforms.