Wall St slips as Middle East uncertainty lifts oil; Trump-Xi talks in focus
SPY•U.S. stocks fell as Middle East uncertainty lifted oil and Treasury yields ahead of a closely watched Trump-Xi summit. The Dow lost 0.40%, the S&P 500 fell 0.30% and the Nasdaq dropped 0.58%.
1. Stocks fall as oil rises
Wall Street’s main indexes declined as uncertainty over a resolution to the Middle East conflict lifted oil prices and Treasury yields. Brent crude rose above $100 a barrel after U.S. and Iranian leaders exchanged barbs at the United Nations, while the 30-year Treasury yield reached its highest level since 2004.
2. Rate hike expectations grow
Investors priced in a 71% chance of at least a quarter-point Federal Reserve rate increase next month, up from about 50% a day earlier. New York Fed President John Williams said another rate increase this year could be reasonable; weekly jobless claims also fell.
3. Company shares move
Oracle fell 5.5% after a report said it sent a force majeure notice to a New Mexico data center, and developer Blue Owl dropped 5%. MGM Resorts slumped 10% after Barry Diller’s People withdrew its buyout proposal. Meta Platforms rose 1.1% after launching Charm, a handheld gadget for using its Muse consumer AI agent.
