Renewed gains in oil prices are weighing on both equities and bonds, as rising energy costs continue to exert price pressure. The latest inflation figures have further solidified market expectations that the Federal Reserve will raise interest rates soon.

As of 9:31 a.m. in New York, the S&P 500 was down 0.6%, the Nasdaq 100 fell 1.1%, and the Dow Jones Industrial Average declined 0.5%. Should the S&P 500 close lower today, it would mark the index's longest losing streak since June.

Data from the U.S. Bureau of Labor Statistics released Thursday showed that the Producer Price Index (PPI) rose 0.4% month-over-month in August and 5.4% year-over-year. Excluding food and energy, core PPI increased 0.2% on a monthly basis and 4.6% annually.

With this data now in hand, market attention turns to Friday's Consumer Price Index (CPI) report. The August CPI figure is expected to show a faster pace of monthly growth compared to the prior month, partly due to higher gasoline prices. Excluding the volatile energy and food components, the core CPI is anticipated to rise at a more moderate clip.

Some Fed officials have indicated that the interest rate decision at the September 15-16 meeting could hinge on this week's inflation data. Additionally, the European Central Bank has announced a rate hike.

Joe Brusuelas, chief economist at RSM US LLP, commented: "The hot U.S. PPI print, combined with Christine Lagarde's hawkish tone, both reflect the reality that global central banks may be on the cusp of a new round of rate hikes. This is a headwind for risk assets today and in the near term."

The VIX index rose approximately one point to near 18, reaching its highest level in over a month. Meanwhile, Oracle Corp (NYSE: ORCL) is set to report earnings after the market close, which will test investor tolerance for artificial intelligence spending.

Apple Inc (NASDAQ: AAPL) rose 0.9%, as analysts expressed broad optimism about the company's newly launched foldable iPhone. Meta Platforms Inc (NASDAQ: META) was roughly flat after JPMorgan Chase & Co (NYSE: JPM) upgraded its rating on the stock.