Stocks Extend Slide as Oil Nears $100 and Treasury Yields Climb

The major averages extended their holiday-shortened week decline on Wednesday as another surge in crude oil and higher Treasury yields kept equities under pressure throughout the session. The S&P 500 declined 0.5%, the Nasdaq Composite fell 0.6%, and the Dow Jones Industrial Average lost 0.8%. Weakness was even more pronounced outside the large-cap benchmarks, with the Russell 2000 down 1.3% and the S&P MidCap 400 falling 1.1%.

Crude oil remained one of the market’s primary headwinds as the U.S.-Iran conflict continued to escalate. WTI futures settled $3.05 higher, or 3.3%, at $96.07 per barrel, pushing crude closer to the psychologically important $100 threshold and extending the sharp advance that has weighed on equities since the beginning of September.

Oil prices climbed following reports that the U.S. struck several Iranian oil tankers in response to an attack on an American warship. Iran subsequently warned that it would escalate its counterstrikes if U.S. attacks continue, adding to concerns about further disruption to regional energy supplies.

The latest advance in crude provided a considerable boost to energy stocks, with the sector gaining 1.1%. Energy stood alone in positive territory among the 11 S&P 500 sectors, underscoring how the same oil-price surge benefiting producers was creating a more challenging backdrop for much of the rest of the market.

Treasury yields provided another source of pressure. Rates moved sharply higher during the late morning following the Treasury Department’s announcement of plans to buy back $6 billion of long-term debt. The move in yields coincided with equities falling to their session lows, and the 10-year Treasury yield ultimately finished three basis points higher at 4.84%.

The combination of higher oil prices and rising interest rates weighed particularly heavily on economically and rate-sensitive areas. Consumer discretionary declined 1.4%, while consumer staples lost 0.9%. Utilities (-1.2%) and real estate (-1.1%) also struggled as higher yields reduced the relative appeal of their dividend-oriented profiles and maintained pressure on rate-sensitive valuations.

Industrials (-1.5%) finished at the bottom of the sector standings. Vertiv (VRT 262.87, -27.96, -9.61%) was among the group’s most pronounced laggards, falling nearly 10%.

Casey’s General Stores (CASY 629.03, -104.46, -14.24%) was another major decliner and finished as the weakest component in the S&P 500 following its earnings report. The company exceeded earnings-per-share and revenue expectations, but investors appeared disappointed with aspects of its inside-store operations and outlook for the remainder of the year.

Information technology (-0.2%) once again held up considerably better than the broader market as semiconductor stocks extended their recent relative strength. The PHLX Semiconductor Index gained 0.4%, with several chipmakers ranking among the stronger S&P 500 performers. NVIDIA (NVDA 223.79, -1.94, -0.86%) moved in the opposite direction, however, limiting the group’s contribution to the broader market.

Apple (AAPL 315.34, -0.88, -0.28%) briefly moved into positive territory during the afternoon following the company’s product event before ultimately finishing modestly lower. Apple introduced the iPhone Duo, its first foldable iPhone, alongside the iPhone 18.

Meta Platforms (META 653.69, +40.21, +6.55%) was the clear standout among the mega-cap stocks, surging 6.6% following the debut of its Muse personal AI agent. Meta’s sizable advance helped limit the communication services sector’s loss to just 0.3%.

Strength in Meta offset some of the pressure from Alphabet (GOOG 328.38, -7.00, -2.09%), Comcast (CMCSA 24.59, -1.74, -6.61%), and Charter Communications (CHTR 133.89, -11.85, -8.13%). Comcast and Charter came under particularly heavy selling pressure after Comcast highlighted heightened “competitive intensity” during remarks at the Goldman Sachs Communacopia + Technology Conference.

By the closing bell, isolated strength in semiconductors and Meta had done little to alter the broader complexion of Wednesday’s session. Ten of the 11 S&P 500 sectors finished lower, small- and mid-cap stocks significantly underperformed, and market breadth reflected widespread selling beneath the headline indexes.

Energy was the lone sector to advance, but its strength was driven by the same surge in crude oil that represented a growing headwind for the broader economy and equity market. With WTI crude now above $96 per barrel and the 10-year Treasury yield back at 4.84%, investors faced simultaneous pressure from higher energy costs and tighter financial conditions.

Wednesday’s decline therefore extended the defensive tone that has characterized the abbreviated week. Scattered strength in AI-related and semiconductor stocks continued to provide pockets of resilience, but with oil approaching $100 and Treasury yields moving higher, the broader market remained firmly on the defensive.

Our FTinvest 11 model portfolio plunged 5.83% to close at 939.41, marking a sharp acceleration in the recent selloff and one of the portfolio’s most significant daily declines of the year. The drop pushed FTInvest 11 decisively into correction territory, with the portfolio now approximately 14.3% below its all-time closing high of 1,096.33. The index also moved substantially below the 1,000 level, representing a significant reversal from the record highs reached less than two months ago.

FTinvest 11 is now up only approximately +1.21% year-to-date, meaning the portfolio has surrendered nearly all of its 2026 gains during the recent downturn. Today’s unusually large decline represents a clear deterioration from the volatile but relatively contained trading seen around 1,000 in recent sessions. Despite the severity of the short-term drawdown, FTInvest 11 remains marginally positive for the year and continues to follow its disciplined, value-driven investment approach with a focus on long-term capital appreciation.