US Equities Trim Losses
US stock indices eased from record highs as concerns of high bond yields returned to the market's forefront, risking earnings projections on credit-sensitive sectors. The S&P 500 and the Nasdaq 100 dropped 0.3% from their peaks, while the Dow fell 0.6%. Oil prices softened from morning gains and longer maturity yields pulled back following a strong 10-year note auction. Still, tight credit conditions remained and FOMC members were in agreement that higher rates are needed to tame inflation, per the latest meeting minutes. AI infrastructure stocks erased their gains from earlier this week amid the increasing impact of high yields and credit spreads on their orders, with Micron, AMD, Oracle, Lam Research, and Applied Materials dropping up to 2%. This was despite positive news for the sector, with SpaceX set to borrow $40 billion to buy Nvidia chips. Nvidia was 1% down and SpaceX fell 3%. Meanwhile, pharmaceuticals and consumer staple companies were higher.
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US stock indices eased from record highs as concerns of high bond yields returned to the market's forefront, risking earnings projections on credit-sensitive sectors. 6%. Oil prices softened from morning gains and longer maturity yields pulled back following a strong 10-year note auction. Still, tight credit conditions remained and FOMC members were in agreement that higher rates are needed to tame inflation, per the latest meeting minutes.
AI infrastructure stocks erased their gains from earlier this week amid the increasing impact of high yields and credit spreads on their orders, with Micron, AMD, Oracle, Lam Research, and Applied Materials dropping up to 2%. This was despite positive news for the sector, with SpaceX set to borrow $40 billion to buy Nvidia chips. Nvidia was 1% down and SpaceX fell 3%. Meanwhile, pharmaceuticals and consumer staple companies were higher.