Wall Street Slumps on Rising Oil Prices and US-China Summit Uncertainty

Wall Street's main indexes declined on Thursday as uncertainty over the Middle East conflict lifted oil prices and Treasury yields, keeping risk appetite in check ahead of a crucial US-China summit.

The Dow Jones Industrial Average fell 208.36 points to 51,303.23, while the S&P 500 dropped 24.04 points to 7,681.99, and the Nasdaq Composite lost 159.54 points to 26,778.64.

Treasury yields rose, with the 30-year Treasury bond reaching its highest since 2004, putting pressure on riskier assets as investors priced in a long war and higher borrowing costs.

Despite this, faith in the AI trade, which powered the Nasdaq to record highs earlier this week, limited losses among riskier assets, analysts said.