United States stocks closed lower on Wednesday (Thursday AEST) as oil prices surged above US$100 a barrel amid escalating tensions in the Middle East, while Apple fell and Treasury yields rose ahead of key inflation data due later in the week.
The Dow Jones Industrial Average fell 405.4 points, or 0.8%, to 52,380.7; the S&P 500 declined 37.2 points, or 0.5%, to 7,636.4; and the Nasdaq fell 168.1 points, or 0.6%, to 26,253.3.
Concerns over global oil supplies and a flare-up in Middle East tensions pushed Brent crude above $100 a barrel, a level closely watched by equity investors.
The U.S.-Israeli war on Iran, now in its seventh month, has heightened fears of a broader regional conflict, with elevated oil prices adding to inflation pressures.
Apple ended 0.3% lower after holding its first smartphone launch under new CEO John Ternus.
Meta jumped 6.6%, after the social media company launched its long-awaited AI assistant, which can autonomously send emails, sell a car or make travel bookings on behalf of users.
Alphabet fell 2.3% after the Google parent said it would invest at least $15.1 billion in AI infrastructure in Finland over the next two years, including a major deal to supply nuclear power.
U.S. Producer Price Index and consumer price data due later in the week will be in focus for clues on the Federal Reserve's interest-rate path.
Traders are pricing in a 60.2% chance that the Fed will raise interest rates at its policy meeting next week, according to the CME Group FedWatch Tool.
Meanwhile, the yield on the benchmark 10-year U.S. Treasury note climbed to its highest level since November 2023 after the Treasury Department said it would buy up to $6 billion of 10- to 20-year government bonds.
The 10-year Treasury yield rose 0.8% to 5.293%, while the two-year yield gained 0.8% to 4.436%.
