US stocks mixed on higher oil prices, bond yields

Wall Street experienced a mixed day on Wednesday as US economic data provided a positive outlook for the economy, but elevated bond yields dampened investor sentiment. The Commerce Department revised upward its estimate for Q2 GDP growth in the United States to 2.2 percent, largely attributed to the rapid growth in artificial intelligence investments.

The Federal Reserve's preferred inflation gauge remained steady at 3.4 percent year-on-year in August, unchanged from the previous month. Private payroll firm ADP reported stronger-than-expected job growth in September. However, long-term bond yields remained high, adding to market uncertainty. Arun Sundaram, a representative from CFRA Research, stated that higher yields are likely due to stronger economic growth expectations, driven by the AI boom, which is leading to record capital spending and significant productivity gains in the long run.

While both the Dow and S&P 500 indexes declined, the Nasdaq index managed to rise. Meanwhile, European stock markets closed lower after France, Germany, and Italy reported surging prices, particularly at the petrol pumps. Economic releases from the Eurozone have not improved the outlook, with rising inflation and weakening sentiment contributing to concerns about stagflation, according to Forex.com analyst Fawad Razaqzada.

London's FTSE 100 ended the day on a down note after a brief rally following initial estimates of better-than-expected growth in the UK economy for the second quarter.

Oil prices soared on Wednesday due to the absence of progress in US-Iran negotiations to resolve the dispute over the Strait of Hormuz. The S&P 500 closed the day down by 0.3 percent, reaching 7,652 points; the Dow Jones Industrial Average fell by 0.9 percent, settling at 50,906 points; and the Nasdaq Composite index rose slightly by 0.2 percent, hitting 26,861 points.