Wall St slips as Middle East uncertainty lifts oil; Trump-Xi talks in focus

Wall Street's main indexes fell on Thursday as doubts over a settlement of the Middle East conflict pushed oil and Treasury yields higher, according to Business Recorder. Brent crude climbed back above $100 a barrel after US and Iranian leaders traded sharp words at the UN General Assembly, and a possible ban on US diesel exports added to investor caution. Technology shares led losses on the S&P 500, with Nvidia, Broadcom and Micron each slipping more than 1 per cent.

Oracle lost 5.5 per cent after a report said it had issued a force majeure notice for a New Mexico data center, and Blue Owl, the developer of that project, dropped 5 per cent. Yields on the 30-year Treasury bond rose to their highest level since 2004, weighing on riskier assets as markets priced in the chance of a prolonged war and costlier borrowing. Analysts said the AI trade, which had lifted the Nasdaq to record levels, limited losses.

Attention is now turning to the summit between Trump and Xi, where AI regulation, the Middle East and Taiwan are expected to be discussed. US Treasury Secretary Scott Bessent said the two countries have agreed to a truce extension running to January 10. Investors now put the odds of a Federal Reserve rate increase next month at 71 per cent, according to CME Group data.