Stocks slip as Brent above $97 reignites rate-hike fears
U.S. stocks fell Tuesday as crude oil extended higher, pushing the 10-year Treasury yield above 4.8% and reviving bets the Federal Reserve could raise rates next week. The Dow led declines, while Amgen was the biggest drag.
S. 8% for the first time since October 2023, reviving speculation that the Federal Reserve could raise rates next week. The Dow Jones Industrial Average bore the brunt of the damage, falling 578 points. Market Reaction West Texas Intermediate crude hovered near $92 a barrel, up roughly 12% over the past month, while Brent held above $97 and is up about 11% on the month.
S. 4 million barrels, the lowest since 1982. 78%, its highest level in nearly three years. 25%.
Traders now assign roughly a 58% probability to a 25-basis-point rate hike at next week’s Federal Open Market Committee meeting, a remarkable repricing for an economy that added 162,000 jobs in August. 4%. 34, a decline of 578 points. Amgen Inc.
6%. 83, though the internals were far better than the headline. Within Magnificent Seven stocks, Tesla Inc. 8%, NVIDIA Corp.
(NASDAQ: NVDA ) added 2% and Apple Inc. 4% ahead of Wednesday’s iPhone event. 5% to about $4,384 an ounce, leaving the metal essentially flat for September and short of any new milestone. 29.
S. 4%. 1%. 4%.
2%. 2% gain, followed by the Energy Select Sector SPDR Fund (NYSE: XLE ), up 1% as crude held near multi-month highs. 4%. 2%, by far the worst performer.
9%. Beneath the sector level, the split was violent. 7%. 6%.
Rate-sensitive consumer and software groups took the pain. S. 8%. Tuesday’s Movers Amgen was the story of the session.
15 after Novartis AG (NYSE: NVS ) disclosed that pelacarsen, its investigational lipoprotein(a)-lowering therapy, failed to reduce cardiovascular death, heart attack or stroke versus placebo in a pivotal Phase 3 trial despite cutting Lp(a) levels. The read-across hit Amgen’s rival candidate olpasiran, and BMO Capital downgraded the stock. The fallout spread across medtech, with Stryker Corp. 2%.
Roivant Sciences Ltd. 7% after mosliciguat, the lead asset at subsidiary Pulmovant, succeeded in a mid-stage trial in patients with pulmonary hypertension associated with interstitial lung disease. The company also expects to launch brepocitinib for dermatomyositis by the end of September after the FDA accepted the application under Priority Review. The power-and-compute trade did the heavy lifting elsewhere.
Bloom Energy Corp. 58 on confirmation it will join the S&P 500 before the open on Sept. 21, with UBS lifting its price target to $325 from $300 and estimating passive funds could ultimately hold 10% to 15% of shares outstanding. Intel Corp.
91 following a media report that the chipmaker is planning another round of price increases to lift gross margin, an accompanying analyst upgrade, and confirmation that it has processed more than one million wafers using High-NA EUV lithography on its 18A process. CoreWeave Inc. 38 and Fermi Inc. 76.
Both moves look like positioning in the AI infrastructure and neocloud complex ahead of Oracle Corp. (NYSE: ORCL ) fiscal first-quarter results Thursday. Oracle itself rose about 5% ahead of the print. Lumentum Holdings Inc.
94, extending a run that began with a late-August fiscal fourth-quarter beat-and-raise in which adjusted earnings and revenue roughly doubled year over year and prompted a wave of price-target hikes, including Mizuho’s move to $1,140. Enterprise software kept bleeding. Guidewire Software Inc. 63, extending a roughly 20% post-earnings slide from Sept.
6 million consensus. UiPath Inc. 10, also extending losses tied to what analysts characterized as a low-quality beat paired with slowing growth. GoDaddy Inc.
97 after a securities class action notice was issued Tuesday over the February disclosure that bookings growth decelerated to 5%, compounding a recent Wells Fargo downgrade to Underweight with a $76 price target. Shift4 Payments Inc. 78 on no confirmed company-specific news, moving with a broad de-rating across payments and fintech that also caught peers WEX, Remitly and Paymentus. On the tape late morning, QUALCOMM Inc.
(NASDAQ: QCOM ) chief financial officer said the company has landed another hyperscaler engagement, expects to begin recognizing Amazon revenue in the December quarter and holds high confidence in its $5 billion data center target. Tuesday’s Russell 1000 Top Gainers Name % change Roivant Sciences Ltd. 74% CoreWeave, Inc. 57% Fermi Inc.
60% Lumentum Holdings Inc. 96% Tuesday’s Russell 1000 Top Losers Name % change Amgen Inc. 62% Shift4 Payments, Inc. 04% Guidewire Software, Inc.
49% GoDaddy Inc. 25% UiPath, Inc. 21%