A decline in oil prices brought some relief to Wall Street, with stocks bouncing despite a renewed bout of volatility in giant chipmakers.
The S&P 500 halted back-to-back losses. Brent crude fell to around $103 after jumping more than 4% in the previous session. But the drop wasn’t enough to lift bonds as still-elevated energy costs fuel concern about inflation. A closely watched gauge of semiconductor powerhouses whipsawed amid concerns about the sustainability of the artificial-intelligence trade.
Equities held gains despite data showing US consumer sentiment fell in early October and views of current economic conditions hit an all-time low as inflation weighed on households.
Geopolitical worries, rising yields, AI investment concerns have contributed to investor pessimism. But earnings expectations remain robust, and the eventual resolution of election uncertainty could provide another catalyst for equities, according to Bob Edwards at Edwards Asset Management.
“I believe corporate earnings remain remarkably strong,” he said.
Corporate Highlights:
- SpaceX · is closing in on a crucial swath of spectrum needed to turn Elon Musk’s rocket, satellite and AI company into a “major mobile carrier,” setting the stage for a clash with stalwarts like T-Mobile US Inc., Verizon Communications Inc. and AT&T Inc.
- Apple Inc. fell after after a report that the company cut component orders for the iPhone 18 Pro and iPhone 18 Pro Max following weaker-than-expected demand.
- Lumentum Holdings Inc. · ’s optical components are “completely sold out” through early 2029 on demand from tech companies clamoring for faster AI data centers, according to its chief executive officer.
- Delta Air Lines Inc. · reduced its full-year earnings outlook as jet fuel prices remain elevated, signaling mounting pressure on an airline industry whose smaller players are even less equipped to weather spiraling costs.
- Humana Inc. jumped as the company improved its performance on crucial Medicare Advantage quality ratings that will boost future revenue.
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Some of the main moves in markets:
Stocks
- The S&P 500 rose 0.3% as of 10:02 a.m. New York time
- The Nasdaq 100 rose 0.2%
- The Dow Jones Industrial Average rose 0.3%
- The Stoxx Europe 600 rose 1.1%
- The MSCI World Index rose 0.4%
Currencies
- The Bloomberg Dollar Spot Index rose 0.1%
- The euro fell 0.2% to $1.1193
- The British pound was little changed at $1.3227
- The Japanese yen fell 0.3% to 158.37 per dollar
Cryptocurrencies
- Bitcoin rose 0.8% to $82,411.82
- Ether rose 0.1% to $2,476.9
Bonds
- The yield on 10-year Treasuries advanced four basis points to 5.26%
- Germany’s 10-year yield declined one basis point to 3.48%
- Britain’s 10-year yield declined four basis points to 5.45%
Commodities
- West Texas Intermediate crude rose 0.1% to $91.62 a barrel
- Spot gold rose 1.3% to $4,187.75 an ounce