U.S. stocks extended losses on Wednesday, weighed by rising oil prices that kept inflation and interest-rate concerns firmly in focus. The Dow Jones Industrial Average dropped 0.77% to 52,380.66, marking its lowest level since late July. The broader S&P 500 fell nearly 0.5% to 7,636.36.
The Nasdaq 100 proved relatively more resilient, sinking just 0.29% to 29,421.55, buoyed in part by a sharp rally in Meta Platforms shares following the launch of its new AI assistant, Muse.
Brent crude for November delivery climbed above $100 a barrel for the first time since July, lifting U.S. energy names. Shares of Chevron and ExxonMobil rose as much as 2.2%. The oil-price surge followed escalating tensions between the United States and Iran over control of the Strait of Hormuz.
Investors were positioned cautiously ahead of a busy schedule later in the week, including the European Central Bank’s interest-rate decision on Thursday, U.S. price data, and quarterly reports from Oracle and Adobe.
Meta’s stock surged 6.6% as traders wagered the company could emerge as a stronger beneficiary of generative-AI adoption with the Muse launch. An analyst at Mizuho Securities wrote that investors want evidence that AI spending is paying off, calling the release a step in the right direction.
The Muse announcement also supported other AI-linked names. Shares of Marvell Technology, AMD, SanDisk and Micron gained between 1.5% and 4.3%. Most other large-cap tech companies, however, closed in negative territory. Alphabet fell more than 2% as Meta entered direct competition with Google’s Gemini AI agent, and Apple declined modestly despite introducing a foldable iPhone concept that failed to spark investor enthusiasm.
Among smaller caps, volatility was sharp. Casey’s, a convenience-store and mini-mart operator, sank more than 14% after analysts questioned its volume outlook, noting that higher fuel margins would be needed to sustain profit growth. The company’s annual forecasts were merely confirmed. ServiceTitan, a software firm, suffered an even steeper 30% decline after issuing a quarterly revenue forecast that disappointed investors; early commentary suggested the scaling of an AI agent was slowing.
