S&P 500 ends down as oil tops US$100 per barrel

The S&P 500 ended lower on Wednesday as oil prices broke past $100 per barrel, while other major indexes also saw declines. Worries about dwindling global oil supply and Middle East tensions contributed to the surge in oil prices, a key concern for the stock market. The US-Israeli conflict in Iran, now in its seventh month, has heightened fears of a wider regional conflict, further driving oil prices higher and fueling inflation concerns.

The S&P 500 energy index even rose 1.1%, but other sectors experienced declines. Apple saw a 0.3% drop after its first smartphone launch under new CEO John Ternus. Treasury yields rose to their highest level since November 2023, prompting investors to seek safer assets and dampening the appeal of stocks. Market participants remain cautious as key inflation data is due out later in the week, with a 60% chance of a Federal Reserve rate hike at the upcoming policy meeting.

The S&P 500 closed at 7,636.46 points, down 0.48% from the previous session. The Nasdaq and Dow Jones Industrial Average also experienced slight declines. Despite the broader market downturn, Meta saw a significant 6% increase following the rollout of an advanced AI assistant, while Alphabet faced a 2.3% drop after announcing substantial investments in AI infrastructure.