Nasdaq Sinks 171.62 Points to 26,081.72 as Brent Crude Tops $107 and 10-Year Treasury Yield Hits 4.95%

Mumbai, Sept 11: US equity markets closed sharply lower on Thursday, with the Nasdaq Composite bearing the brunt of a broad-based sell-off as Brent crude oil surged past $107 per barrel and the 10-year Treasury yield climbed to 4.95%, its highest level since October 2023. The tech-heavy index fell 171.62 points, or 0.65%, to close at 26,081.72, while the Dow Jones Industrial Average dropped 316.56 points, or 0.60%, to 52,064.10, and the S&P 500 declined 44.66 points, or 0.58%, to 7,591.70.  

It was the fourth consecutive session of declines for all three major averages, with the S&P 500 losing 2% over that stretch — its deepest four-day loss since June. The primary catalysts were a 6.7% jump in WTI crude to $102.48 and a 5.9% surge in Brent to $107.63, both settling at their highest levels since May, alongside a 73% probability of a Federal Reserve rate hike next week, as priced by CME FedWatch. 

Dow Jones Drops 316 Points to 52,064 as Oil Price Shock Weighs on Industrials 

The Dow Jones Industrial Average closed at 52,064.10, down 316.56 points or 0.60%, after opening at 52,291.85 and trading within a day’s range of 51,962.71 to 52,291.85. The index’s 52-week range stands at 45,057.28 to 54,744.33. The sell-off was led by sharp declines in industrial and consumer-facing components, with Boeing falling 2.05%, 3M dropping 1.86%, Honeywell declining 1.59%, UnitedHealth sliding 1.94%, and Procter & Gamble falling 2.02%.  

Chevron bucked the trend with a 1.91% gain, while IBM surged 3.38% and JPMorgan added 0.34%. The index’s decline reflects growing concerns that sustained oil prices above $100 could pressure corporate margins and consumer spending, particularly for industrial conglomerates with significant transportation and energy input costs. 

S&P 500 Falls 44.66 Points to 7,591.70 as Materials Sector Leads Broad Decline 

The S&P 500 ended the session at 7,591.70, down 44.66 points or 0.58%, after opening at 7,594.74 and trading between 7,580.06 and 7,612.86. The benchmark’s 52-week range is 6,316.91 to 7,816.70. Nine of the 11 S&P 500 sector indexes declined, led lower by materials, which fell 1.45%, followed by a 0.91% loss in information technology. The energy sector was the standout performer, gaining over 2%, as Exxon Mobil rose 2.22% and Chevron added 1.91%.  

Consumer staples was the top-performing sector with a gain of 0.25%, reflecting defensive positioning. Among individual names, Meta Platforms surged 6.55% to $653.69, while  Alphabet declined 2.28% and Amazon fell 1.78%. The S&P 500 has now lost 2% over the past four sessions, and declining stocks outnumbered rising ones by a 2.0-to-one ratio. 

Nasdaq Composite Sinks 171.62 Points to 26,081.72 as Chip Stocks Retreat 

The Nasdaq Composite closed at 26,081.72, down 171.62 points or 0.65%, after opening at 26,021.05 and trading within a range of 25,979.54 to 26,178.25. The index’s 52-week range is 20,690.25 to 27,190.21, and it remains up 11% in 2026. The decline was driven by weakness in semiconductor and high-beta technology names, with Nvidia falling 0.91%, Broadcom declining 1.13%, ASML dropping 2.00%, Lam Research falling 1.43%, and KLA Corporation plunging 3.21%.  

Advanced Micro Devices gained 3.04%, Micron Technology rose 2.75%, and Marvell Technology surged 4.26%, providing some counterbalance. Shopify was the worst performer in the Nasdaq 100, tumbling 5.45%, while Datadog jumped 7.15%. The index’s decline came as the PHLX Semiconductor Sector Index (SOX) fell 317.15 points or 2.66% to 11,614.17, reflecting the outsized impact of rising Treasury yields on growth-oriented technology valuations. 

Russell 2000 Slides 1.01% to 2,891.68 as Small-Cap Borrowing Costs Bite 

The Russell 2000 Index closed at 2,891.68, down 29.55 points or 1.01%, after opening at 2,908.52 and trading between 2,886.96 and 2,908.52. The small-cap benchmark’s 52-week range is 2,303.46 to 3,069.71. The decline was led by weakness in rate-sensitive sectors, with Ormat Technologies falling 8.48%, IBP dropping 7.67%, Cipher Digital declining 5.68%, and AVAV falling 5.36%.  

Aurora Innovation declined 6.14%, while Oscar Health dropped 3.79%. The Russell 2000’s underperformance relative to large-cap indices reflects the disproportionate impact of higher borrowing costs on smaller companies, which typically carry higher debt loads and have less access to diversified funding sources. 

Also Read: How to invest in US stocks

S&P 100 Declines 0.44% to 3,772.50 as Mega-Cap Technology Weighs 

The S&P 100 Index closed at 3,772.50, down 16.71 points or 0.44%, after opening at 3,767.00 and trading within a range of 3,760.64 to 3,779.86. The index’s 52-week range is 3,074.00 to 3,853.17, with a previous close of 3,789.21.  

The decline was led by mega-cap technology and communication services names, with Alphabet falling 2.28%, Amazon declining 1.78%, and Microsoft dropping 0.47%. Meta Platforms was the notable outlier, surging 6.55%, while Apple gained 3.56% to $326.57 following the launch of its foldable iPhone Duo. The S&P 100’s decline was less severe than the broader market due to the defensive characteristics of several of its largest constituents. 

Dow Composite, Transportation, and Utility Averages All Decline 

The Dow Jones Composite Average closed at 16,395.00, down 83.28 points or 0.51%, after opening at 16,453.77 and trading between 16,372.65 and 16,483.96. The Dow Jones Transportation Average fell 11.21 points or 0.054% to 20,562.67, with a day’s range of 20,459.20 to 20,710.84. The Dow Jones Utility Average declined 9.91 points or 0.92% to 1,073.07, trading between 1,072.88 and 1,091.20.  

The transportation average’s relatively smaller decline reflects the mixed impact of lower fuel costs for airlines offset by concerns about reduced shipping demand, while the utility average’s decline was driven by rising bond yields, which make dividend-paying utility stocks less attractive relative to fixed-income alternatives. 

Philadelphia Semiconductor Index Plunges 317.15 Points or 2.66% to 11,614.17 

The PHLX Semiconductor Sector Index (SOX) closed at 11,614.17, down 317.15 points or 2.66%, after opening at 11,663.00 and trading within a range of 11,561.03 to 11,733.68. The index’s 52-week range is 5,974.59 to 14,655.29, with a previous close of 11,931.32.  

The decline was driven by broad-based weakness across chipmakers, with Intel falling 5.24%, Micron Technology dropping 3.52%, Lam Research declining 3.83%, Arm Holdings falling 3.44%, and Nvidia dropping 2.46%.  

The semiconductor index’s sharp decline reflects the sector’s sensitivity to rising interest rates, which compress valuations for high-growth technology companies with earnings weighted toward future periods. 

NYSE Composite Falls 166.50 Points or 0.68% to 24,144.65 

The NYSE Composite Index closed at 24,144.65, down 166.50 points or 0.68%, after opening at 24,148.32 and trading within a range of 24,121.23 to 24,311.15. The index’s 52-week range is 20,906.44 to 24,866.75, with a previous close of 24,311.15.  

The broad-based decline reflected weakness across most sectors, with particular pressure on materials, industrials, and energy-related names. The NYSE Composite’s decline was slightly more pronounced than the S&P 500’s, reflecting the index’s greater weighting toward value-oriented and cyclical stocks that are more sensitive to economic growth concerns. 

S&P MidCap 400 and SmallCap 600 Decline 0.94% and 0.90% Respectively 

The S&P MidCap 400 closed at 3,683.34, down 35.12 points or 0.94%, after opening at 3,718.46 and trading between 3,679.49 and 3,718.46. The S&P SmallCap 600 fell 15.53 points or 0.90% to 1,716.71, with a day’s range of 1,713.55 to 1,727.79.  

Both indices’ 52-week ranges remain significantly below their large-cap counterparts, with the MidCap 400 ranging from 3,107.41 to 3,928.98 and the SmallCap 600 ranging from 1,364.16 to 1,832.20. The declines in mid and small-cap indices reflect the disproportionate impact of higher interest rates on companies with greater reliance on external financing and less pricing power to pass through rising input costs. 

VIX Spikes 9.36% to 18.00 as Traders Price In Fed Rate Hike Risk 

The CBOE Volatility Index (VIX) surged 9.36% to 18.00, up 1.54 points, after opening at 16.31 and trading within a range of 16.29 to 18.17. The index’s 52-week range is 13.38 to 35.30, with a previous close of 16.46. The VIX’s spike reflects heightened uncertainty ahead of Friday’s consumer price index release and the Federal Reserve’s policy meeting next week.  

The CBOE Nasdaq Volatility Index (VXN) closed at 21.07, while the CBOE S&P 500 3-Month Volatility Index (VIX3M) stood at 17.56. The elevated volatility levels indicate that options traders are pricing in increased uncertainty and potential for further market swings in the coming sessions. 

Also Read: US Stock Market Timings

S&P 500 Slides as 9 of 11 Sectors Close Lower 

The S&P 500 ended broadly lower as nine of 11 sectors finished in negative territory, with Materials, Industrials and Consumer Discretionary among the biggest decliners. Rising bond yields, weakness in technology stocks and concerns over economic activity weighed on investor sentiment. 

Materials fell 1.45%, making it one of the weakest-performing sectors. The decline was led by a 7.7% drop in Freeport-McMoRan, while copper miners also came under pressure following reports that the White House was hesitant to impose proposed metal import tariffs. 

Industrials declined 1.48%, reflecting concerns over slowing economic activity. Information Technology dropped 0.91%, while Consumer Discretionary fell 1.39%, pressured by a 3.81% decline in Booking Holdings and a 5.45% fall in Shopify. 

Utilities also weakened, dropping 1.16% as rising bond yields reduced the appeal of dividend-paying stocks. 

Energy was the standout performer, gaining more than 2% as crude oil prices moved above $100 a barrel. Exxon Mobil rose 2.22%, while Chevron added 1.91%. Consumer Staples edged up 0.25%, providing limited support to the broader market. 

Signet Jewelers Surges 24% as Resolution Minerals Crashes 26% 

Individual stocks recorded some of the session’s biggest moves. Signet Jewelers surged 23.96% to $102.48, making it the top gainer. Academy Sports and Outdoors jumped 14.40% to $51.15, while Cloudflare climbed 10.51% to $314.18. 

Sasol gained 9.62%, Pulse Biosciences advanced 8.57%, Ambarella rose 8.38%, Compass Pathways added 8.05%, MaxLinear gained 7.53% and Datadog climbed 7.15%. 

The Magnificent Seven delivered mixed results. Meta Platforms surged 6.55%, while Apple gained 3.56%. Alphabet declined 2.28%, Amazon fell 1.78%, Microsoft slipped 0.47%, Nvidia dropped 0.91% and Tesla edged down 0.10%. 

On the losing side, Resolution Minerals plunged 26.47%, followed by Regencell Bioscience with a 14.22% decline and ChronoScale Holdings with a 13.68% fall. Cipher Digital also dropped 5.68%. 

Nvidia and Intel Sink as Semiconductor Stocks Face Heavy Selling 

Semiconductor stocks were among the biggest decliners during the session. The PHLX Semiconductor Sector Index fell 2.66%, while Intel dropped 5.24% and Micron Technology declined 3.52%. 

Nvidia also remained under pressure. The weakness reflects the sensitivity of semiconductor and other growth stocks to higher interest rates, as rising yields can weigh on valuations. 

AI-related stocks were similarly mixed. Palantir fell 0.45%, CrowdStrike declined 1.06% and Palo Alto Networks slipped 0.56%. However, Datadog surged 7.15% after reporting strong earnings, bucking the broader weakness across technology and growth stocks. 

Oil Tops $100 as Exxon and Chevron Lead Energy Stocks Higher 

Energy stocks emerged as the strongest performers as crude oil prices climbed above $100 a barrel. Exxon Mobil gained 2.22%, Chevron advanced 1.91% and ConocoPhillips rose 1.10%. 

Financial stocks delivered a mixed performance. JPMorgan gained 0.34% and Bank of America rose 0.45%, while Goldman Sachs fell 0.75% and American Express declined 1.32%. 

The session highlighted a clear divergence across the market, with energy benefiting from higher oil prices while technology, industrial and materials stocks faced selling pressure. Rising yields, commodity prices and company-specific earnings remain key factors shaping investor sentiment. 

PPI Rises 5.4% Year-on-Year as Jobless Claims Come in at 206,000 

The Bureau of Labor Statistics reported that the Producer Price Index (PPI) rose 0.4% month-on-month in August, in line with economists’ expectations and above July’s revised 0.1% increase. On a year-on-year basis, headline PPI rose 5.4%, slightly above estimates of 5.3% and accelerating from July’s revised 4.8% print.  

The core PPI reading, which excludes volatile food and energy costs, advanced 0.2% month-on-month, below the expected 0.3% rise, while core PPI on a year-on-year basis came in at 4.6%, in line with estimates but above July’s 4.2% gain. Separately, weekly initial jobless claims came in at 206,000, versus 205,000 expected, while continuing claims stood at 1.77 million against expectations of 1.78 million.  

Existing home sales fell 2% in August to an annualised rate of 3.98 million, hitting their lowest level in over a year as elevated mortgage rates kept prospective buyers on the sidelines. 

Fed Rate Hike Odds Surge to 73% as Treasury Yields Hit Multi-Year Highs 

Traders now see a 73% probability that the Federal Reserve will raise interest rates by at least 25 basis points at its meeting next week, up from approximately 64% before Thursday’s PPI report, according to the CME FedWatch tool.  

The 2-year Treasury yield rose as much as 10 basis points to 4.53%, its highest level since July 2024, while the 10-year Treasury yield climbed to 4.95%, its highest since October 2023. The 30-year Treasury yield advanced to 5.35%, reaching levels last seen in 2007.  

The yield curve between 2-year and 10-year Treasuries flattened to its narrowest level since late July. The Treasury Department completed a buyback of $5.19 billion of $6 billion in long-dated Treasuries on Thursday in an effort to manage yield curves as energy prices soared. 

Also Read: What Are Fractional Shares?

Oil Surges Past $107 as Middle East Conflict Escalates; Gold Falls 2.1% 

Brent crude futures surged 5.9% to settle at $107.63 per barrel, the highest close since May 19, while US West Texas Intermediate crude jumped 6.7% to $102.48. Since the Iran war began at the end of February, WTI is up 52.9% and 78.5% year-to-date. The oil price surge followed reports that Saudi Arabia’s oil production had fallen to 6.238 million barrels per day, the lowest level since 1990, and that the US had attacked Iranian oil tankers in the Gulf of Oman.  

Natural gas prices traded around $2.88/MMBtu, while European gas prices exceeded €81 ($94.2) per megawatt-hour, hitting their highest level since the end of 2022. Gold futures fell 2.1% to $4,365 an ounce, while spot silver declined 3.90% to $64.654. Copper prices dropped from record highs, with LME copper falling over 3% to $14,300.50 per ton after the White House signalled hesitation on proposed metal import tariffs. 

US Dollar Index Rises 0.3% to 99.06; Pound Hits Two-Week High of 1.3552 

The US Dollar Index (DXY) rose 0.3% to 99.06, recovering from earlier losses as rising Treasury yields and oil prices bolstered demand for the greenback. The EUR/USD pair traded at 1.1629, while USD/JPY rose 0.3% to 154.08. The GBP/USD hit a two-week high of 1.3552 before settling at 1.3547, supported by expectations that the Bank of England could maintain a tighter monetary policy stance than the Federal Reserve.  

The USD/CNY closed at 6.7062, with the yuan strengthening for a second consecutive session to its highest level since July 2022. The offshore yuan traded at 6.7049, while the People’s Bank of China set the daily midpoint at 6.7766. 

The US market closed sharply lower on Thursday, with the Nasdaq Composite falling 171.62 points to 26,081.72 and the S&P 500 declining 44.66 points to 7,591.70, as Brent crude surged past $107 and the 10-year Treasury yield hit 4.95%. The 73% probability of a Fed rate hike next week and Friday’s CPI release remain the key catalysts to monitor. Investors should track oil price movements, Treasury yield trajectories, and the upcoming Federal Reserve policy decision for further direction. 

Source 

• https://www.nasdaq.com/ 

• spglobal.com/spdji/en/indices/equity/sp-500/ 

• https://www.dowjones.com/ 

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• https://www.spglobal.com/spdji/en/indices/equity/sp-500/ 

• https://www.nasdaq.com/market-activity/index/comp 

• https://www.nasdaq.com/market-activity/quotes/nasdaq-ndx-index 

• https://www.spglobal.com/spdji/en/indices/equity/sp-100/ 

• https://www.lseg.com/en/ftse-russell/indices/russell-us 

• https://www.nyse.com/index 

• https://www.nyse.com/index 

• https://www.spglobal.com/spdji/en/indices/equity/dow-jones-transportation-average/ 

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• https://www.spglobal.com/spdji/en/indices/equity/dow-jones-composite-average/ 

• https://www.nasdaq.com/market-activity/index/sox 
• https://www.cboe.com/tradable_products/vix/