Stocks rose on Wednesday as tech stocks stabilized after a two-day sell-off and oil prices declined to their lowest level in months.
The blue-chip Dow Jones Industrial Average was up 1.1% in recent trading to lead the indexes higher. The tech-heavy Nasdaq Composite and benchmark S&P 500 each rose 0.7%. The major indexes all declined yesterday, with the S&P 500 and Nasdaq closing sharply lower as memory and chip stocks sold off amid rising concern about interest rates and valuations.
Chip and memory stocks were under pressure again after tumbling yesterday. Micron (MU), which fell 13% yesterday, slipped 1% ahead of its earnings report after the bell. Sandisk (SNDK) and Western Digital (WDC) slipped 2% and 4%, respectively. The Magnificent Seven mega-cap tech stocks were mostly higher, with Amazon (AMZN) rising about 2% to lead the group as Microsoft (MSFT) and Tesla (TSLA) ticked lower. SpaceX (SPCX) stock rose 2% after eking out a small gain yesterday to snap a three-day losing streak.
Shares of Cerebras (CBRS) tumbled 16% after the AI chip designer, in its first earnings report as a public company, forecast its gross margins would narrow by up to 10 percentage points in the current quarter. FedEx (FDX) shares fell 1% despite its quarterly results beating Wall Street's estimates.
S&P Global announced changes to its marquee stock indexes late Tuesday. It said Alphabet (GOOG) would replace Verizon (VZ) in the Dow effective Monday. S&P also said Honeywell Aerospace, which is being spun-off from industrial giant Honeywell (HON), would replace food company Conagra Brands (CAG) in the benchmark S&P 500 as of next week.
Oil prices continued to slide, falling to their lowest levels since the war with Iran began. West Texas Intermediate futures, the U.S. benchmark, dropped about 4% to trade at $70 a barrel, just a few dollars above their pre-war price. Brent crude, the global benchmark, also fell 4% to about $74.
The 10-year Treasury yield, which influences interest rates on a variety of consumer loans, including mortgages, was recently 4.41%, down from 4.50% yesterday. The yield reflecting inflation expectations is well off its recent highs, but the yield on the 2-year bond, a proxy for interest rate expectations, remains near its highest level this year at 4.16%.
Bitcoin was recently trading at $60,600 after topping $65,000 earlier this week. Gold futures slumped 3% to $4,025 a troy ounce, putting the precious metal on track for its lowest close this year. The U.S. dollar index, which tracks the value of the greenback against a basket of foreign currencies, was recently up 0.2% at 101.60.
Have a great day!... Show More
Not investment advice. The author may have financial interests in the mentioned instruments.
Thanks mate for the updates. Hope to catch up with you in the pro investor meet in Cyprus this Nov. ... Show More
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