US stock markets extended their decline on Thursday, continuing losses from the previous session as equity indices came under pressure from rising oil prices and a renewed wave of selling across bond markets.
The Dow Jones Industrial Average fell 0.5 percent to 51,260 points, the S&P 500 lost 0.3 percent to 7,682, and the Nasdaq 100 gave up 0.5 percent to 30,305 — retreating from the record high it achieved on Tuesday.
The selloff in equities coincided with a sharp advance in oil prices, which triggered a broader liquidation in fixed income markets. Yields on 30-year US Treasury bonds were driven to their highest level since 2004, creating what Simon Wiersma of ING Bank described as a "noticeable headwind" for stocks.
Inflation concerns have also returned to the forefront. A warning from an Iranian official that geopolitical tensions in the Middle East could escalate further and spread to additional regions helped push oil prices higher. Separately, the US government is considering a ban on diesel exports.
On the individual-stock front, Oracle shares fell 5.1 percent. Citing unnamed Bloomberg reporters, the company took steps to protect itself against soaring costs tied to a massive data center currently under construction in New Mexico. According to the report, the project has been beset by construction obstacles and regulatory setbacks. Oracle reportedly served notice to the project developer invoking a force majeure clause, which would allow it to defer payments if the data center cannot begin operations as planned in 2028.
Dropbox stock declined 3.5 percent after Citigroup analyst Steven Enders recommended selling the shares, arguing that the stock had already priced in too much of the cloud-storage provider's artificial-intelligence ambitions. The share had recently reached its highest level since its IPO in 2018.
MGM Resorts fell 9.4 percent after People Inc, which had previously held only a minority stake in the hotel and casino operator, withdrew its acquisition offer for the remaining shares.
Everpure, by contrast, rose nearly 18 percent after the flash-storage and data-management company delivered a strong medium-term revenue outlook that won over investors.
