US stock markets fell Thursday, extending losses for a fourth straight session, while oil prices surged past $100 a barrel and hotter-than-expected producer prices stoked fresh inflation fears.
The Dow Jones Industrial Average declined 0.3 percent to 52,216 points. The S&P 500 slipped 0.5 percent to 7,595, and the technology-heavy Nasdaq fell 0.7 percent to 26,060. The Nasdaq 100 gave up 0.9 percent to close at 29,161.
US producer prices rose 5.4 percent year-on-year in August, surpassing the 5.3 percent forecast, according to data released before the open. Traders now priced in a 70 percent likelihood — up from 65 percent previously — that the Federal Reserve raises rates by at least 25 basis points next week. Consumer price data, which the Fed watches closely, is due Friday.
Oil prices added to inflation anxieties. US light sweet crude WTI climbed above $100 a barrel for the first time since May, while Brent crude rested at $105.30 a barrel, having breached the mark Wednesday. Both contracts were roughly 4 percent higher for the session. The moves followed reports that Iran-backed Houthi forces captured the Yemeni port city of Mokha near the Bab al-Mandab strait, disrupting shipping through the Strait of Hormuz and the Red Sea.
Chip and memory stocks faced the sharpest selling. Western Digital, ARM, Intel, Sandisk and Micron all shed up to 5 percent, weighed down by competitive pressure from Chinese AI challenger Deepseek, which unveiled a new model on Thursday. Software and data-center firm Oracle was down 1 percent pre-market ahead of after-hours earnings. Adobe also traded lower.
Mining stocks suffered a sharp correction as copper and silver prices pulled back on deferred US tariff decisions and oil-driven growth concerns. Freeport-McMoran and Southern Copper each fell more than 7 percent.
In earnings, several retailers and industrial names posted mixed results. Macy's gave up about 5 percent after posting second-quarter numbers that exceeded expectations but left its third-quarter guidance below forecasts; the company said higher store remediation costs would weigh on the current quarter despite an annual outlook upgrade buoyed by Bloomingdale's and Bluemercury. American Eagle Outfitters plunged 13 percent on disappointing sales. Contact-lens maker Cooper Companies dropped 15 percent after cutting its growth outlook and canceling the sale of its CooperSurgical unit, prompting Bank of America to rescind its buy rating. Drone manufacturer AeroVironment rose nearly 6 percent after beating revenue estimates. Business-travel firm Navan cratered 22 percent as operating losses doubled on elevated costs.
On the European side, the Swiss Market Index (SMI) fell 0.36 percent to 13,754. Kühne+Nagel led gainers, up 2.2 percent, while Alcon and Amrize each lost 2.5 percent.
Attention now turns to the Fed, which will decide on rates next week, and to Friday's consumer-price report. The European Central Bank raised its key rate by 25 basis points to 2.5 percent as expected, shifting investor focus across the Atlantic.
