US stocks fall as China's COVID surge sparks oil demand fears and sends energy sector lower

Wall Street has been hit by a brutal market sell-off this year.

Spencer Platt/Getty Images

• US stocks closed down on Wednesday after extending losses late in the trading session. 
• The Nasdaq led the market decline while, the energy sector was the biggest loser on the S&P 500.
• Oil prices dropped as investors grew worried over the resurgence of COVID-19 infections in China.

US stocks ended lower on Wednesday after extending losses late in the trading session, as oil prices dropped on fears of lower Chinese demand.

The Nasdaq led the market decline, while the energy sector was the biggest loser on the S&P 500. COVID-19 infections are still surging in China, adding to worries that Beijing is rushing to reopen the economy after news on Monday that China the will no longer require inbound travelers to quarantine.  

Meanwhile, Tesla stock avoided its longest-ever slump, scratching out a slim gain after seven consecutive declines.

Here's where US indexes stood shortly after the 4:30 p.m. market close on Wednesday: 

• S&P 500: 3,783.21, down 1.20%
• Dow Jones Industrial Average: 32,875.71, down 1.10% (365.85 points)
• Nasdaq Composite: 10,213.29, down 1.35%

Here's what else is going on: 

• Solana tumbled further on Wednesday as the Sam Bankman-Fried-backed cryptocurrency has lost nearly all its value this year.  
• MicroStrategy sold bitcoin for the first time despite previous comments from the firm's chief executive that it would never happen. 
• Economist Paul Krugman compared Tesla to bitcoin and said he wouldn't trust Elon Musk to feed his cat.
• Wharton professor Jeremy Siegel said US stocks could soar in the first half of 2023 if the Fed pivots from rate hikes. 

In commodities, bonds, and crypto: 

• Oil prices fell, with West Texas Intermediate down 1.07% at $78.67 a barrel. Brent crude, the international benchmark, declined 1.24% to $83.23 a barrel.
• Gold dipped 0.50% to $1,804.72 per ounce.
• The 10-year yield gained 2.7 basis points to 3.885%.
• Bitcoin pulled back 0.20% to $16,607.63.  

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