US stocks fell for a fourth consecutive session on Thursday as surging oil prices fuelled inflation concerns and pushed Treasury yields sharply higher.
The Dow Jones Industrial Average dropped 316.56 points, or 0.6%, to 52,064.10. The S&P 500 fell 0.58% to 7,591.70, while the Nasdaq Composite declined 0.65% to 26,081.72.
Higher bond yields weighed particularly on rate-sensitive technology stocks. Intel fell 5.6% and Micron Technology lost 4.7%. Apple bucked the trend, jumping 3.6% following the launch of its first foldable smartphone, while Alphabet and Microsoft also finished modestly higher.
Oil prices surged as the Iran war entered its seventh month. WTI crude jumped 6.7% to US$102.48 a barrel, while Brent gained 5.9% to US$107.63, with prices pushing higher again after settlement.
The jump in energy prices intensified concerns that inflation could remain elevated and force the Federal Reserve to raise interest rates. The probability of a 25-basis-point increase climbed above 70%, with investors now focused on Friday’s US CPI report for further direction.
The US 10-year Treasury yield rose 12 basis points to around 4.96%, its highest level since October 2023. Bond yields also climbed sharply across Europe, with the UK 10-year rising to 5.37%, France’s to 4.44% and Germany’s to 3.50%.
Australian Market Outlook
Australian shares are set to extend their losses, with S&P/ASX 200 futures down 78 points, or 0.9%, to 8,733. Surging oil prices and higher global bond yields are likely to remain the main drivers at the open. Energy stocks could benefit from the sharp rise in crude, while higher borrowing costs may weigh on the broader market. Investors will also be watching Friday’s US inflation figures, with a stronger-than-expected reading likely to reinforce expectations for a Federal Reserve rate increase and maintain upward pressure on global yields
