U.S. stocks slipped by midday Thursday as oil surged more than 5% on fresh Persian Gulf tanker attacks, while Treasury yields climbed back toward their highest levels since 2002 and the Federal Reserve’s hawkish minutes kept rate-hike bets alive.
President Donald Trump said he no longer wants a deal with Iran, while noting Tehran was willing to offer “anything to stop” the conflict.
Reports that Washington is preparing possible large-scale strikes, combined with lower tanker transit through the Strait of Hormuz and Gulf Coast production shut-ins ahead of a hurricane, sent crude sharply higher.
West Texas Intermediate crude futures climbed about 5% to roughly $93 per barrel. Brent crude rose about 5.6% to around $106.
The 10-year Treasury yield rose about 5 basis points to 5.35%, nearing its highest level since 2002, while the 30-year yield hovered near 5.69%, close to a 24-year high. Minutes from the Federal Reserve’s Sept. 15-16 meeting showed most policymakers expect another rate hike before year-end.
On the data front, initial jobless claims fell 2,000 to 197,000 in the week ended Oct. 3, below the 200,000 forecast. Continuing claims rose to 1.716 million, slightly above the 1.710 million estimate, while the four-week average eased to 198,000 from 200,500.
The Atlanta Fed’s GDPNow model pegged third-quarter growth at 3.6%, down from 3.7%.
Across U.S. equity markets by midday Thursday, losses were modest but broad, with small caps taking the brunt of the selling.
The S&P 500 slipped about 0.4% to 7,771, while the Dow Jones Industrial Average fell roughly 221 points, or 0.4%, to 50,959.
The Nasdaq 100 declined 0.6% to 30,973. The Russell 2000 underperformed, sliding 1.1% to 2,763.
Gold edged higher, with the SPDR Gold Shares (NYSE:GLD) gaining 0.3%, while silver futures fell about 2.0% to $59.11 per ounce.
Bitcoin (CRYPTO: BTC) slid 2.5% over 24 hours to about $81,166, after trading between $80,912 and $83,645 as higher yields pressured risk assets.
Thursday’s Performance in Major US Indices
| Index | Last | % Change | MTD | YTD |
|---|---|---|---|---|
| S&P 500 | 7,771.02 | -0.39% | +1.56% | +13.52% |
| Dow Jones | 50,959.07 | -0.43% | +0.10% | +6.02% |
| Nasdaq 100 | 30,973.16 | -0.60% | +1.86% | +22.67% |
| Russell 2000 | 2,762.58 | -1.10% | -1.23% | +11.31% |
According to the Benzinga Pro platform:
- The Vanguard S&P 500 ETF (NYSE:VOO) fell 0.4%.
- The SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA) slipped 0.4%.
- The Invesco QQQ Trust (NASDAQ:QQQ) declined 0.6%.
- The iShares Russell 2000 ETF (NYSE:IWM) slid 1.1%.
Energy Rides Oil’s Surge While Data Center Plays Slide
The Energy Select Sector SPDR Fund (NYSE:XLE) was the standout, jumping 2.8%, followed by the Consumer Staples Select Sector SPDR Fund (NYSE:XLP), up 1.4%.
The Health Care Select Sector SPDR Fund (NYSE:XLV) was the weakest group, down 1.8%, followed by the Utilities Select Sector SPDR Fund (NYSE:XLU), off 0.8%, and the Technology Select Sector SPDR Fund (NYSE:XLK), down 0.7%.
Oil-linked names led the Russell 1000 gainers. Marathon Petroleum Corp. (NYSE:MPC) climbed 5.0% and APA Corp. (NASDAQ:APA) rose 4.8% as crude spiked, with Chevron Corp. (NYSE:CVX) and Exxon Mobil Corp. (NYSE:XOM) each gaining about 3%.
Chipotle Mexican Grill Inc. (NYSE:CMG) jumped 6.5% on heavy volume after a report that Starbucks explored a takeover, while Starbucks Corp. (NASDAQ:SBUX) fell about 3%.
Jersey Mike’s Subs Inc. (NYSE:JMKE) rose 6.2%, moving in sympathy with the restaurant group.
GlobalFoundries Inc. (NASDAQ:GFS) gained 4.3% after announcing an agreement to establish a U.S.-based supply of silicon interposers for advanced AI packaging.
On the downside, Applied Optoelectronics Inc. (NASDAQ:AAOI) dropped 9.8% on dilution concerns tied to a $600 million share offering program. Revolution Medicines Inc. (NASDAQ:RVMD) fell 9.6% on elevated volume, with no confirmed catalyst identified in the news flow.
AI infrastructure and data center names sold off as yields rose: TeraWulf Inc. (NASDAQ:WULF) fell 7.3% and Fermi Inc. (NASDAQ:FRMI) slid 7.2%. AST SpaceMobile Inc. (NASDAQ:ASTS) dropped 7.1%.
Thursday’s Russell 1000 Top Gainers
| Name | % change |
|---|---|
| Chipotle Mexican Grill, Inc. | +6.48% |
| Jersey Mike’s Subs Inc. | +6.22% |
| Marathon Petroleum Corporation | +5.04% |
| APA Corporation | +4.84% |
| GLOBALFOUNDRIES Inc. | +4.32% |
Thursday’s Russell 1000 Top Losers
| Name | % change |
|---|---|
| Applied Optoelectronics, Inc. | -9.79% |
| Revolution Medicines, Inc. | -9.59% |
| TeraWulf Inc. | -7.28% |
| Fermi Inc. | -7.18% |
| AST SpaceMobile, Inc. | -7.05% |
Image: Shutterstock
