S&P 500 Gains, Crude Falls Ahead Of Fed's Expected First Hike Since 2023: Stock Market Today
A sharp reversal in crude oil handed U.S. equities a reprieve on Wednesday, with stocks grinding higher off six-week lows just hours before the Federal Reserve is expected to raise interest rates for the first time since 2023. The S&P 500 added 0.4% to 7,615.70, while the Dow Jones Industrial Average was effectively flat at 52,113. The Nasdaq 100 outperformed, rising 0.9% to 29,198 as hardware and semiconductor names extended Tuesday’s rebound from AI-safety jitters. U.S. Energy Secretary Chris Wright told CNBC that the outage on Saudi Arabia’s damaged East-West crude pipeline would be a “brief and temporary interruption” measured in days, and Riyadh moved to route additional barrels through Oman. West Texas Intermediate crude slid 3.6% to $102.02 a barrel, slipping back below $103 after a 20.6% surge so far this month. Brent fell 3.3% to $105.17. The cheaper barrel rippled straight into the Treasury market. The 10-year yield eased 5 basis points to 4.96%, taking a breather after five straight sessions of gains that carried it to 5.04% on Tuesday, the highest since July 2007. The reprieve does not change the Fed’s arithmetic. Markets price in roughly a 93% chance that the central b
A sharp reversal in crude oil handed U.S. equities a reprieve on Wednesday, with stocks grinding higher off six-week lows just hours before the Federal Reserve is expected to raise interest rates for the first time since 2023. The S&P 500 added 0.4% to 7,615.70, while the Dow Jones Industrial Average was effectively flat at 52,113. The Nasdaq 100 outperformed, rising 0.9% to 29,198 as hardware and semiconductor names extended Tuesday’s rebound from AI-safety jitters.
U.S. Energy Secretary Chris Wright told CNBC that the outage on Saudi Arabia’s damaged East-West crude pipeline would be a “brief and temporary interruption” measured in days, and Riyadh moved to route additional barrels through Oman. West Texas Intermediate crude slid 3.6% to $102.02 a barrel, slipping back below $103 after a 20.6% surge so far this month. Brent fell 3.3% to $105.17.
The cheaper barrel rippled straight into the Treasury market. The 10-year yield eased 5 basis points to 4.96%, taking a breather after five straight sessions of gains that carried it to 5.04% on Tuesday, the highest since July 2007. The reprieve does not change the Fed’s arithmetic. Markets price in roughly a 93% chance that the central bank will lift the target range by 25 basis points to 3.75%-4.00% this afternoon, its first hike in nearly three years, with another move expected by December.
Wednesday’s data did nothing to soften the case: August retail sales jumped 1.2% month-over-month against forecasts of 0.8%, the control group used in GDP calculations surged 1.4% versus 0.4% expected, and import prices climbed 0.7%, well above the 0.4% consensus. Wednesday’s Performance In Major US Indices Index Last % Change MTD YTD S&P 500 7,615.70 +0.4% -0.8% +11.5% Dow Jones 52,113 +0.04% -1.9% +8.5% Nasdaq 100 29,198 +0.9% -0.9% +15.6% Russell 2000 2,883.46 +0.5% -2.6% +16.4% Updated by 12:15 PM ET According to the Pro platform: The Vanguard S&P 500 ETF (NYSE: VOO ) gained 0.4%. The SPDR Dow Jones Industrial Average ETF Trust (NYSE: DIA ) edged up 0.1%.
The Invesco QQQ Trust (NASDAQ: QQQ ) climbed 0.8%. The iShares Russell 2000 ETF (NYSE: IWM ) rose 0.5%. Read Also: Fed Hike Odds Hit 93%: 3 Things That Could Really Surprise Markets Wednesday Energy Stocks Pullback, Freight Stocks Hit by Lower Margins The Energy Select Sector SPDR Fund (NYSE: XLE ) was far and away the worst performer, sliding 2.1% as the crude reversal gutted producers. The SPDR S&P Oil & Gas Exploration & Production ETF (NYSE: XOP ) plunged 3.2% and the VanEck Oil Services ETF (NYSE: OIH ) shed 1.3%.
The Financial Select Sector SPDR Fund (NYSE: XLF ) was the only other sector in the red, off 0.5%. At the other end, the Technology Select Sector SPDR Fund (NYSE: XLK ) led with a 1.0% gain, trailed by the Industrials Select Sector SPDR Fund (NYSE: XLI ) at 0.9% and the Health Care Select Sector SPDR Fund (NYSE: XLV ) at 0.6%. Chips did the heavy lifting: the VanEck Semiconductor ETF (NASDAQ: SMH ) jumped 1.7%, the best industry move on the board, while the iShares Biotechnology ETF (NASDAQ: IBB ) added 0.9% and the SPDR S&P Metals & Mining ETF (NYSE: XME ) rose 0.7%. Forgent Power Solutions Inc.
(NYSE: FPS ) topped the large-cap board, rallying 11.6% after fourth-quarter revenue rose 94% year-over-year to $462 million and adjusted EBITDA jumped 163% to $113 million. Record quarterly bookings of $1.5 billion left the company with a $3 billion backlog covering more than 90% of fiscal 2027 revenue guidance of $2.4 billion to $2.6 billion. The rest of the leaderboard was an AI-connectivity pile-on with little hard news behind it. Semtech Corp.
(NASDAQ: SMTC ) surged 11.0%, extending Northland’s upgrade to Outperform with a $182 price target, which flagged connectivity as the AI bottleneck. The optics complex moved together and, again, without a company-specific trigger. Lumentum Holdings Inc. (NASDAQ: LITE ) rose 8.2%, Credo Technology Group Holding Ltd (NASDAQ: CRDO ) gained 8.0% and Coherent Corp.
(NYSE: COHR ) climbed 6.4%. The correlated bounce looks like short covering after a brutal month for the group. Astera Labs Inc. (NASDAQ: ALAB ) rode the same wave, up 6.0%, alongside Dell Technologies Inc.
(NYSE: DELL ) at 5.2% and Intel Corp. (NASDAQ: INTC ) at 5.0%. J.B. Hunt Transport Services Inc.
(NASDAQ: JBHT ) collapsed 12.5% after a rare intra-quarter warning delivered at a Morgan Stanley conference. The carrier guided third-quarter earnings to fall 5% to 10% from the second quarter, citing a $10 million fuel headwind and $25 million of added driver-related costs. Chief Financial Officer Brad Delco said the company has seen “some of the most radical and abnormal swings” in fuel prices it has ever experienced. Knight-Swift Transportation Holdings Inc.
(NYSE: KNX ) fell 3.9% in sympathy. Permian operators took the brunt of the crude unwind, and all four of the next-worst names share the same catalyst. Diamondback Energy Inc. (NASDAQ: FANG ) dropped 9.0% on more than 14 times normal volume; its mineral-rights affiliate Viper Energy Inc.
(NASDAQ: VNOM ) fell 7.2%, Matador Resources Co. (NYSE: MTDR ) lost 6.5%, and Permian Resources Corp. (NYSE: PR ) slid 6.1%. The Saudi pipeline restart headline and the reversal in the barrel account for the whole move, compounded by a government report showing crude inventories fell just 0.64 million barrels last week against expectations for a 1.6 million-barrel draw.
The damage ran deep through the patch. EOG Resources Inc. (NYSE: EOG ) fell 5.5%, Occidental Petroleum Corp. (NYSE: OXY ) lost 5.3%, ConocoPhillips (NYSE: COP ) shed 4.8% and Devon Energy Corp.
(NYSE: DVN ) dropped 4.7%. Elsewhere, First Solar Inc. (NASDAQ: FSLR ) fell 5.4% and crypto-linked names sold off, with Circle Internet Group Inc. (NYSE: CRCL ) down 5.8%.
Wednesday’s Russell 1000 Top Gainers Name % change Forgent Power Solutions, Inc. +11.57% Semtech Corporation +11.03% Lumentum Holdings Inc. +8.17% Credo Technology Group Holding Ltd +8.02% Coherent Corp. +6.43% Wednesday’s Russell 1000 Top Losers Name % change J.B.
Hunt Transport Services, Inc. -12.52% Diamondback Energy, Inc. -9.03% Viper Energy, Inc. -7.22% Matador Resources Company -6.48% Permian Resources Corporation -6.09% Image created using artificial intelligence via Midjourney.