U.S. stocks fell for a third straight session on Wednesday, September 9, 2026, as crude oil surged past $100 a barrel for the first time since May and Treasury yields climbed to their highest levels since 2023. The declines came as investors weighed an intensifying U.S.-Iran conflict in the Strait of Hormuz, a debt buyback plan from the Treasury Department, and growing bets that the Federal Reserve could raise interest rates at its meeting next week. The S&P 500 has now shed 1.1% for the week, though it remains up more than 11% for the year.

Wall Street Slides as Oil Tops $100 a Barrel

The S&P 500 fell 37.16 points, or 0.5%, to close at 7,636.36, while the Dow Jones Industrial Average dropped 405.41 points, or 0.8%, to 52,380.66. The Nasdaq Composite lost 168.07 points, or 0.6%, to finish at 26,253.34, and the small-cap Russell 2000 underperformed with a 1.3% decline. The selloff came as Brent crude jumped 3.4% to settle at $101.21 a barrel, its highest close since May 22, while West Texas Intermediate advanced 3.3% to $96.05. Crude prices spiked after the U.S. military destroyed five Iranian oil tankers a day earlier in retaliation for attacks on an American warship, deepening fears over energy flows through the Strait of Hormuz.

Treasury Yields Hit Highest Level Since 2023

The 10-year Treasury yield climbed to 4.845%, its highest level since November 2023, after the Treasury Department unveiled a $6 billion debt buyback plan roughly triple its usual size. The move, tied to Treasury Secretary Scott Bessent’s debt management strategy, added to concerns that heavy government borrowing could keep long-term rates elevated even as inflation risks build from higher energy costs. Bond investors also weighed the prospect of heavier Treasury issuance in the months ahead. Rising yields weighed on equity valuations already strained by the jump in oil prices, with rate-sensitive sectors among the session’s weakest performers.

Fed Rate-Hike Bets Build Ahead of September 16 Meeting

Traders increasingly priced in the possibility of a Federal Reserve interest-rate hike at the September 16 policy meeting, with market-implied odds near 52% to 53% for a quarter-point increase as the oil shock stoked inflation concerns. Fed Chair Kevin Warsh and other policymakers face a delicate balance between a cooling labor market and renewed price pressures from energy costs and tariffs. The dollar slipped to a four-month low as investors awaited producer price and consumer price data later in the week, seen as key inputs for the Fed’s decision. Gold held steady near $4,400 an ounce, supported by the weaker dollar.

Canada Trade Tensions Add to Market Unease

Trade tensions with Canada also weighed on sentiment after Ottawa’s retaliatory tariffs on roughly $20 billion of U.S. goods, covering products such as steel, household appliances, agricultural equipment and dairy, took effect earlier in the week. In response, the Trump administration signed proclamations banning a range of Canadian products, including alcoholic beverages, motorcycles and whey, and expanded tariff coverage to include golf carts, drawing paper and additional steel and aluminum parts. The product bans take effect September 29, with related tariff modifications beginning September 15, adding another layer of uncertainty for investors navigating a volatile week of headlines.

Daily market analysis by BCM Markets.