US stocks extended their declines as a sharp rise in oil and fuel prices pushed Treasury yields higher and squeezed expected profit margins for companies. The S&P 500 fell 0.6%, the Dow Jones Industrial Average slipped 0.4%, and the Nasdaq 100 dropped 1.3%.
Producer prices rose 0.4% in August from the prior month, as the ongoing war in Iran drove wholesale energy costs higher. Oil and fuel benchmarks have climbed further since the start of September amid renewed escalation in the conflict and increased demand from Asia. The move has intensified pressure on equities, reinforcing expectations that the Federal Reserve could deliver a rate hike next week.
Chipmakers weakened on concern over their sensitivity to rising long-term borrowing costs, with Marvell, Intel, and Lam Research each down about 3%. Nvidia lost 1%, while Oracle slipped 1.5% ahead of its earnings report due after the close.
Apple edged higher, trimming the previous session’s losses, after unveiling a slate of new products, including the foldable iPhone Duo.
