The Swiss SMI index closed 0.47% lower at 13,740 points on Thursday, extending a multi-day slide as traders pointed to rising oil prices and the European Central Bank's rate hike. Thirteen of twenty SMI constituents finished in the red.
Kühne+Nagel led gains, rising 1.6%, while Swisscom advanced 1.1%. Novartis recovered slightly, gaining 0.4% after steep declines the previous day. Nestlé held near flat, but Roche fell 0.6%. Alcon dropped 2.5% and Amrize lost 2.3%. Partners Group declined 1.7% after initially resisting a critical comment from a Vontobel analyst before giving up ground.
In the US, the Dow Jones fell 0.4% to 52,153, marking a fourth consecutive weak session. The Nasdaq 100 dropped 0.9% to 29,161, and the S&P 500 lost 0.5% to 7,598. Investors remain concerned about persistent inflation and the prospect of further Federal Reserve rate increases. The SMI stood 0.36% lower at 13,754 points at an intermediate reading.
The ECB raised its key rate by 25 basis points as expected, bringing the deposit rate to 2.5%. Markets now price a 70% probability, up from 65%, that the Fed will raise rates by at least 25 basis points next week, ahead of Friday's consumer-price data which the Fed regards as more significant.
US producer prices rose 5.4% year-on-year in August, exceeding the 5.3% consensus. The figure heightened inflation worries.
Oil prices escalated the pressure. US light crude WTI traded above $100 a barrel for the first time since May, while Brent crude, already above the mark on Wednesday, was quoted at $105.30 a barrel. Both contracts were up roughly 4% on the day. The Iran-backed Houthi militia seized the Yemeni port city of Mocha near the strategic Bab al-Mandab strait, Reuters reported, adding to disruption of shipping through the Strait of Hormus and the Red Sea.
Chip and memory stocks faced renewed selling. Western Digital, ARM, Intel, SanDisk and Micron fell as much as 5%, pressured in part by competitive threat from Chinese AI provider Deepseek's latest model.
Mining shares declined on weaker metal prices. Freeport-McMoran and Southern Copper each dropped more than 7% following a correction in copper and silver, attributed to postponed US tariff decisions and growth concerns linked to higher oil prices.
Post-close earnings drew attention. Oracle, down 3% pre-market, and Adobe were due to report results. The cost of debt required to fund AI infrastructure expansion remains a recurring investor concern; it weighed heavily on Oracle shares in June and July.
Among individual movers, Navan plummeted 22% after doubling its operating loss on high costs. Macy's fell roughly 5% despite raising its full-year outlook; higher store-renovation costs will weigh on the current quarter. American Eagle Outfitters dropped 13% on disappointing revenue. CooperCompanies sank 15% after lowering its growth forecast and cancelling the sale of its CooperSurgical unit, prompting Bank of America to withdraw its buy recommendation. AeroVironment rose nearly 6% after quarterly revenue beat estimates.
