Stock market today: Dow, S&P 500, Nasdaq extend losses as bond yields jump, oil holds above $100

US stocks sank on Thursday morning as oil prices and Treasury yields continued to climb and investors assessed fresh wholesale inflation data.

The Dow Jones Industrial Average ( ^DJI ) fell 0.3%, while the S&P 500 ( ^GSPC ) fell 0.5%. The tech-heavy Nasdaq Composite ( ^IXIC ) dropped 0.8%, with all three indexes deepening losses from the past three days.

Stocks have cooled this week as oil prices topped $100 per barrel after Iran targeted US Navy warships in the latest escalation in the Middle East conflict. The move higher in oil has helped support rising Treasury yields. The 10-year yield ( ^TNX ) hit a three-year high on Wednesday after the Treasury Department announced it would buy up to $6 billion in longer-term debt.

President Trump said Wednesday that oil prices may not come down until after the midterm elections two months away. The ongoing US-Iran war and disruptions in the Strait of Hormuz have raised concerns that an energy shock could flow into broader inflation and all but force the Federal Reserve to raise interest rates.

On Thursday, wholesale inflation data showed producer prices rose on a monthly and yearly basis, largely in line with expectations, setting the stage for the government's consumer inflation report, due out Friday. The Producer Price Index rose 5.4% year-on-year, and 4.6% on a core basis.

Investors are also considering a proposal Trump floated in Dallas on Wednesday to send every American adult a $5,000 check if the Republicans keep control of Congress in the midterm elections. It's not clear how Trump would implement such a costly measure, as Congress would need to approve it.

After the bell, Oracle ( ORCL ) is expected to report earnings, offering a reality check on AI capital expenditures and demand.

Investors are increasingly betting that the Federal Reserve will raise interest rates at its upcoming meeting.