WASHINGTON (dpa-AFX) - Extending the downward move seen over the two previous sessions, stocks have moved mostly lower during trading on Wednesday. The Dow hit its lowest intraday level in over a month in early trading, although the major averages have regained some ground since then.
Currently, the major averages remain in negative territory. The Dow is down 325.32 points or 0.6 percent at 52,460.75, the Nasdaq is down 132.10 points or 0.5 percent at 26,289.31 and the S&P 500 is down 26.94 points or 0.4 percent at 7,646.58.
The continued weakness on Wall Street comes amid an extended surge by the price of crude oil, with U.S. crude oil futures spiking by 3.5 percent.
The international benchmark brent crude futures have topped $100 a barrel for the first time since July.
The jump in crude oil prices comes as U.S. forces destroyed five Iranian crude oil carriers after the Islamic Revolutionary Guard Corps targeted a U.S. Navy warship with ballistic missiles.
U.S. Central Command said Iran has used the tankers as part of a multibillion-dollar shadow network that funds the IRGC and its regional proxies.
Iran retaliated by launching a barrage of missiles targeting U.S. military positions in Jordan, raising fears of a wider regional conflict.
The sharp increase in crude oil prices has led to renewed concerns about the outlook for inflation ahead of the Federal Reserve's monetary policy meeting next week.
'Brent crude pushing above $100 a barrel has had a psychological effect on the market, pushing a hypothetical inflation worry gauge to 'serious' status and dragging down financial assets,' said Dan Coatsworth, head of markets at AJ Bell.
'The oil price has now jumped by 28% since early August,' he added. 'This type of ascent could leave businesses and consumers feeling sick at the thought of sharp cost increases and potentially higher borrowing costs if central banks choose to fight inflation with interest rate hikes.'
However, traders seem somewhat reluctant to make more significant moves ahead of the release of key inflation data in the coming days.
Sector News
Despite the weakness being shown by the broader markets, most of the major sectors are showing only modest moves on the day.
Retail stocks are seeing considerable weakness, however, with the Dow Jones U.S. Retail Index falling by 1.4 percent.
Notable weakness is also visible among telecom stocks, as reflected by the 1.3 percent loss being posted by the NYSE Arca North American Telecom Index.
On the other hand, gold stocks have shown a strong move to the upside, driving the NYSE Arca Gold Bugs Index up by 1.4 percent.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Wednesday. Japan's Nikkei 225 Index dipped by 0.2 percent, while China's Shanghai Composite Index rose by 0.3 percent.
Meanwhile, the major European markets have all moved to the downside on the day. The French CAC 40 Index is down by 1.8 percent, the German DAX Index is down by 1.7 percent and the U.K.'s FTSE 100 Index is down by 1.3 percent.
In the bond market, treasuries have shown a lack of direction over the course of the session. Currently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by less than a basis point at 4.804 percent.
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