Wall Street slips as Middle East tensions lift oil; Trump-Xi talks in focus
SPY•Wall Street’s main indexes fell as Middle East tensions lifted oil prices and Treasury yields, with investors watching a US-China summit. The Dow dropped 0.65%, the S&P 500 fell 0.46% and the Nasdaq lost 0.74%.
1. Indexes decline
At 11:44 a.m. ET on Thursday, the Dow fell 337.09 points to 51,174.50, the S&P 500 lost 35.17 points to 7,670.68 and the Nasdaq dropped 199.02 points to 26,737.02. Eight of the S&P 500’s 11 sectors were lower, while energy gained 1.5%.
2. Oil and rate concerns
Crude prices rose about $4 a barrel, with Brent reaching $107, after Yemen’s Houthis said they attacked Saudi military sites. The 30-year Treasury yield reached its highest level since 2004. Investors priced in a 71% chance of at least a quarter-point Fed rate hike next month, up from around 50% a day earlier; New York Fed President John Williams said another rate increase this year was reasonable.
3. Company moves and summit
Oracle and Blue Owl shares each fell 5% after a report said Oracle sent a force majeure notice concerning potential cost increases for a New Mexico data center project. MGM Resorts dropped 10% after Barry Diller’s People Inc withdrew its purchase proposal. President Donald Trump welcomed Chinese President Xi Jinping to the White House for a summit, with investors watching for discussions on AI regulation, the Middle East and Taiwan.
