US stocks extended declines Thursday as rising oil prices intensified inflation concerns and fueled bets on further Federal Reserve rate hikes. The S&P 500 fell 0.4%, the Nasdaq 100 dropped 0.7%, and the Dow Jones Industrial Average slipped 0.3%. Treasury yields remain at their highest levels since the Global Financial Crisis, following Wednesday's sharp selloff.

Keith Lerner, chief investment officer at Truist Advisory Services, noted markets have been "contracting or correcting for several weeks" beneath the surface, citing weakness in homebuilding, retailers, and the equal-weight index. Homebuilders are cutting prices with mortgage rates above 7%. New home sales data and initial jobless claims were released Thursday, while a lineup of Fed speakers, including New York Fed President John Williams, emphasized ongoing inflation risks from high energy prices and AI-driven demand.

In tech, Oracle Corp. shares fell after moves to limit expenses on a massive New Mexico data center. Meta Platforms Inc. unveiled the palm-sized Muse Charm AI device, boosting its shares. Geopolitically, the US and China agreed to extend their trade truce for two months ahead of a Trump-Xi Jinping summit. Oil prices rose after Iran's supreme leader threatened to expand conflict to the Indian Ocean. Despite volatility, strategists at Susquehanna International Group and Barclays Plc argued equities should outperform bonds given strong earnings and a resilient consumer.