US stock markets extended losses on Wednesday, with the Dow Jones Industrial Average falling 0.77 percent to 52,380.66 points, marking its lowest level since the end of July. The broader S&P 500 dropped just under half a percent to 7,636.36, while the technology-heavy Nasdaq 100 declined 0.29 percent to 29,421.55.
The pullback was driven primarily by rising oil prices sustaining investor concerns about persistent inflation and the pace of monetary policy. Brent crude settled at $101.03 a barrel, down 0.2 percent but still holding above the psychologically significant $100 mark, while US WTI crude rose 0.2 percent to $96.22. Prices have been buoyed by escalating tensions in the Middle East, including clashes between Saudi Arabia and Houthi rebels in Yemen and ongoing confrontation between the US and Iran over control of the Strait of Hormus.
In the tech sector, Meta shares surged 6.6 percent after the company unveiled "Muse," a new artificial-intelligence assistant. Analysts at Mizuho Securities said the launch signaled that Meta was positioned to reap returns from its AI investments, providing some upside support. Semiconductors and memory-chip stocks also advanced, with Marvell Technology, AMD, SanDisk, and Micron gaining between 1.5 and 4.3 percent.
Most other major technology names closed in negative territory, however. Alphabet fell more than 2 percent as investors priced in competitive pressure from Meta’s new AI agent against Google’s Gemini. Apple slipped modestly, and its announced foldable iPhone did not generate meaningful buying interest.
Energy stocks outperformed broadly, with Chevron and ExxonMobil each climbing as much as 2.2 percent, supported by Brent’s return above $100 for November-delivered contracts—the first time the price has exceeded that threshold since July.
Several smaller US-listed names posted sharp declines. Casey’s stock sank more than 14 percent, while ServiceTitan cratered roughly 30 percent after the software company issued a quarterly revenue forecast that disappointed investors. Market commentary noted that scaling an AI agent could be slowing the firm’s growth trajectory.
Ahead of Thursday’s session, traders adopted a cautious posture, weighing a cluster of sensitive events: the US Federal Reserve’s ongoing policy path, incoming US inflation data on Thursday, the European Central Bank’s interest-rate decision, and quarterly earnings from Oracle and Adobe.
European markets mirrored the mood. Switzerland’s SMI index was expected to open 0.1 percent lower on Thursday, following Wednesday’s steep 1.8 percent loss. In Asia, the Nikkei 225 fell 0.8 percent to 64,597.46, the Topix slipped 0.3 percent to 4,032.89, Shanghai lost 0.1 percent to 3,946.28, and the Shanghai-Shenzhen broad index declined 0.2 percent to 4,564.87.
Geopolitical risk and BOJ rate-hike expectations weighed on Japanese markets. The Nikkei’s biggest loser was Nintendo, which dropped 5.8 percent, while cable manufacturers Fujikura and Furukawa Electric also sold off sharply. Banks and securities firms gained on the prospect of higher rates, and oil and coal sectors rallied. Strategist Wataru Akiyama at Nomura Securities told the Nikkei that both rising commodity prices and interest rates acted as a brake on the overall market.
On the currency front, the US dollar rose marginally to 153.51 yen and strengthened slightly to 6.7080 yuan. Against the Swiss franc, the dollar weakened 0.1 percent to 0.8090, while the euro held nearly flat at 1.1636 dollars and edged up to 0.9414 Swiss francs ahead of the ECB decision. The yen found some support from expectations that the BOJ will raise rates next week to combat inflation.
In corporate news, UBS disclosed plans to wind down its Shenzhen-based fund distribution unit—launched in 2022—by the end of September, citing an inability to compete in an intensely crowded market.
