US equities retreated further on Wednesday as oil prices climbed, compounding investor concerns about inflation and interest rates. The Dow Jones Industrial Average fell about 0.5% to 52,499 points by the two-hour mark before closing — its lowest level since the end of July.
The broader S&P 500 slipped 0.4% to 7,647 points, while the technology-heavy Nasdaq 100 was relatively more resilient, dipping just 0.2% to 29,453 points.
Meta led gains in the tech sector after the company introduced an AI agent called Muse, sending its shares up 6.4%. The product was seen as positioning Meta to benefit from the artificial-intelligence investment cycle, competing directly with OpenAI's ChatGPT and Alphabet's Gemini. Shares of Alphabet declined more than 2% on the competitive pressure. Mizuho Securities noted that investors had been looking for signs that AI spending would yield results, calling the launch "a significant step in that direction."
Other AI-related names also moved higher on renewed interest in the chip and memory sectors, including Marvell Technology, AMD, SanDisk and Micron.
Energy stocks were well-sought after as crude prices pushed higher following renewed mutual attacks in the Persian Gulf. A barrel of Brent crude for November delivery surpassed $100 for the first time since July.
The oil price spike added urgency to upcoming central-bank and data releases. Economists pointed to the European Central Bank's interest-rate decision on Thursday, with markets pricing in a rate hike, and US inflation data due Friday as particularly consequential developments given the current oil-price environment. Meanwhile, the Federal Reserve's September policy meeting carries roughly a 60% market probability of another tightening move.
Among smaller-cap names, Casey's shares dropped 15% after the convenience-store chain posted mixed signals on fuel margins and sales volume; annual forecasts were only confirmed rather than raised. ServiceTitan tumbled 30% after issuing quarterly revenue guidance below expectations, with early market commentary suggesting that scaling the company's AI agent is slowing.
