Major indexes fell Tuesday, retreating from record highs as technology stocks stumbled, while crude oil prices jumped on concerns about escalating tensions in the Middle East.
The Dow Jones Industrial Average was down 0.2% in afternoon trading, while the S&P 500 and Nasdaq Composite were off 0.8% and 1.4%, respectively. The major indexes rose on Monday, with the Dow and S&P 500 hitting record closing highs, to cap off a strong month and quarter. The S&P 500 gained 21% over the first three quarters of the year, its best start to a year in the 21st century.
Large-cap tech stocks, which have underpinned the broader market’s gains this year, were leading the move lower on Tuesday. AI investor favorite Nvidia (NVDA) and Apple (AAPL) were each down more than 3%, while Microsoft (MSFT) and Amazon (AMZN) also lost ground. The VanEck Semiconductor ETF (SMH), was down about 2.5%, while Intel (INTC), Broadcom (AVGO), Micron (MU) and other chipmakers fell sharply.
Crude oil futures jumped about 4% as Iran fired missiles into Israel in the latest escalation of conflict in the Middle East.
Shares of energy and oilfield services companies moved higher in tandem with the rise in oil prices, with Marathon Oil (MRO), Connophillips (COP), Occidental Petroeum (OXY) and Halliburton (HAL) all solidly higher. Defense contractors, including Northrop Grumman (NOC) and Lockheed Martin (LMT), were also moving higher amid the rising Middle East tensions.
U.S. stocks have rallied in recent weeks as investors have grown increasingly confident that the economy is headed for a soft landing and the Federal Reserve will continue cutting its benchmark interest rate, after the central bank eased rates for the first time in four years last month. While Fed officials have made clear that the easing will continue, Fed Chair Jerome Powell said Monday that the Fed’s policy committee isn’t in a hurry to cut rates, noting that incoming data will guide decision-making.
The economic data calendar is busy the remainder of the week, with the big event coming Friday when the September jobs report will be released. Market participants will be keeping close tabs on the economic releases, as well as several scheduled appearances from Fed officials this week.
Investors are also keeping an eye on the massive strike by dockworkers in the U.S. that started overnight, affecting shipments at 14 ports stretching from Maine to Texas and potentially having a big negative impact on the economy.
Gold futures were up nearly 1% at around $2,680 an ounce, nearing a fresh record high, while bitcoin was down 2% to around $62,000.
Apple Tumbles as Barclays Warns of ‘Softer’ iPhone 16 Demand
1 hr 15 min ago
What a difference a day makes for Apple (AAPL).
Its shares neared record territory Monday after JPMorgan analysts gave a relatively upbeat assessment of demand for the Pro versions of the iPhone 16.
The shares reversed direction today, falling alongside broader markets as Barclays analysts reported weakening demand for the phone.
Apple’s stock was recently down about 3.4%, well ahead of the tech-focused Nasdaq’s 1.4% decline in recent afternoon trading.
Justin Sullivan / Getty Images
Barclays said it has indications that orders for the December quarter have been reduced at an important Taiwanese iPhone component supplier. Analysts Tim Long and George Wang wrote in a note to clients that Apple “may just have cut roughly 3 million units at a key semiconductor component in iPhones for the [December quarter], which if confirmed would be the earliest build cut in recent history.”
The analysts added that they previously have noted shorter lead times across iPhone models globally, and that both of those factors “indicate softer demand for IP16, in our view.”
U.S.-Traded Chinese Stocks Rise as Stimulus Rally Continues
2 hr 31 min ago
Shares of Chinese companies traded in the U.S. surged again Tuesday, bucking a broader retreat for the U.S. stock market.
Chinese stocks have rallied for the past week following news that authorities were implementing a wide-ranging stimulus plan.
The Nasdaq Golden Dragon China index (HXC)—an index of 64 China-based companies traded in the U.S—was up more than 3% in early-afternoon trading Tuesday.
The iShares MSCI China ETF (MCHI) was up 2.5% and has gained 21% since the first batch of stimulus measures were unveiled early last Tuesday.
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Among Chinese stock gaining today, PDD Holdings (PDD), parent of online marketplace Temu, was up nearly 5%, leading S&P 500 gainers. Shares of online retailer JD.com (JD) were also up about 5%, while conglomerate Alibaba Group Holding (BABA) gained 4% and Li Auto (LI) rose 8%.
Five Stocks to Watch in October
4 hr 14 min ago
The major indexes entered the fourth quarter near record highs after the Fed’s rate cut fueled a rebound from a shaky start to September.
Looking ahead at specific companies, October brings a major product launch from one of the Magnificent Seven and earnings reports from key companies in the tech, banking, and apparel industries.
Five stocks worth watching for potential market-moving news are Tesla (TSLA), Microsoft (MSFT), Intel (INTC), JPMorgan Chase (JPM) and Nike (NKE).
Read the full article here.
How the Major Indexes Performed in September and Q3
6 hr 6 min ago
The Nasdaq Composite was the big gainer among the three major indexes in September, rising 2.7%. Each of the indexes recovered from steep selloffs recorded during the first week of the month. The S&P and Dow are riding five-month winning streaks, while the Nasdaq has posted gains in two straight months.
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For the third quarter, the Dow Jones Industrial Average turned in the best performance, rising 8.2%.
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Major Stock Index Futures Mixed
6 hr 54 min ago
Futures tied to the Dow Jones Industrial Average were down 0.2%.
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S&P 500 futures were down fractionally.
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Nasdaq 100 futures were up 0.1%.
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