Wall Street dips, oil continues climb ahead of US inflation data

Wall Street experienced a dip on Thursday as investors remained cautious ahead of key U.S. inflation data. The stock indices Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all closed lower for the day. Brent crude climbed above $100 a barrel, reaching its highest level since July, signaling potential inflationary pressures.

The European Central Bank raised its interest rate to 2.50 per cent on Thursday, following the U.S. and Iranian tanker missile strikes in the Strait of Hormuz. U.S. bond yields hovered near multi-decade highs, with Germany's 10-year bond yield at 3.45 per cent and France's OAT yield at 4.35 per cent. Investors were also watching for signs of a possible $5,000 dividend from President Donald Trump if his party won upcoming congressional elections.

The U.S. Treasury also announced a $6 billion buyback of longer-dated bonds. Market attention now turned to the U.S. where key inflation data, including producer price index and consumer price inflation data, would be released before a Federal Reserve rate-setting meeting. Economists expected the Federal Reserve to hold interest rates steady at their September 15-16 meeting and throughout the rest of the year.