Wall Street Tumbles as Middle East Uncertainty Drives Up Oil Prices

Wall Street opened lower on Thursday as uncertainty in the Middle East drove up oil prices and Treasury yields. The S&P 500 index fell 0.09% to 7,698.90 points, while the Nasdaq declined 0.20% to 26,883.15 points.

The Dow Jones Industrial Average was down 0.31% at 51,350.11 points, with seven of the 11 S&P 500 sector indexes declining. Materials and information technology led the losses, down 1.01% and 0.66%, respectively.

Oil prices rose about 4% to $107 per barrel after a Houthi missile attack on Saudi Arabia revived fears of supply disruptions. US President Donald Trump welcomed Chinese President Xi Jinping to the White House for a summit expected to be heavy on symbolism but light on substance related to issues including AI, trade, Taiwan and the war in the Middle East.

New York Fed President John Williams said it was reasonable to think that the US central bank might need to raise interest rates again before the end of the year. Traders are now pricing in a nearly 70% chance of a hike next month, according to the CME FedWatch Tool.