US equities slide as Fed, oil prices and inflation concerns weigh on markets

US equities extended losses on Thursday, with market sentiment further pressured by escalating tensions in the Middle East, rising oil prices, and persistent inflation fears that could prompt the Federal Reserve to tighten monetary policy. Investors remain closely watching the Fed’s upcoming decision, following the European Central Bank’s surprise 0.25 percentage-point hike in its benchmark rate. Before that, Friday’s release of US inflation data—including producer prices—will be critical, with August figures showing a sharper-than-expected rise in producer prices, signaling ongoing inflationary pressures. The Nasdaq 100, which had been supported by AI-driven growth stocks, fell sharply by 0.9%, dropping to 29,169 points. The broader Dow Jones Industrial Average declined by 0.3%, marking its fourth consecutive weak session, while the S&P 500 dropped 0.5% to 7,601 points. Tech-heavy indices were particularly affected, with AI-related stocks under pressure as broader market sentiment weakened.