Post-Bell | Tech Rout Pressures U.S. Benchmarks as Oil Climbs And Yields Hover Near Highs

01 Stock Market

The U.S. major indexes closed as follows: Dow Jones declined 0.60% at 52,064.10; S&P 500 fell 0.58% at 7,591.70; NASDAQ slipped 0.65% at 26,081.72. A fourth straight day of losses was driven by renewed selling in big-tech and semiconductor names, outweighing a late-session lift from energy shares.

Semiconductors dominated the day’s unusual moves. NVIDIA (NVDA) fell 2.26% at $218.36; Micron (MU) slid 4.90% at $977.41; leveraged chip ETF SOXL dropped 8.03% at $115.76, while inverse fund SOXS jumped 8.09% at $46.74. Broader tech weakness hit heavyweights: Oracle (ORCL) declined 5.38% at $152.94 despite upbeat earnings headlines, Intel (INTC) sank 5.57% at $100.32, and Advanced Micro Devices (AMD) lost 3.36% at $503.60. On the upside, Apple (AAPL) gained 3.56% at $326.57, buoyed by enthusiasm around its new foldable devices, and drone maker AeroVironment (AVAV) advanced 4.45% at $147.06.

Broad-based ETFs echoed the risk-off tone. Benchmark trackers SPY slipped 0.60% at $757.83, QQQ retreated 1.06% at $708.69, and VOO eased 0.60% at $696.65, mirroring the pullback in major averages. Rising oil prices and near-5% Treasury yields added to valuation concerns, prompting profit-taking in growth stocks even as select defensive names saw relative resilience. Altogether, the day underscored investors’ sensitivity to higher rates and energy costs as they reassess tech-driven valuations.

02 Other Markets

U.S. 10-year Treasury yield held flat, unchanged at 4.94%. USD/CNH rose 0.03%, at 6.78; USD/HKD was little changed, up 0.0004%, at 7.84. U.S. Dollar Index declined 0.01%, at 99.07. WTI crude futures rose 1.30%, at $103.81 USD/bbl; COMEX gold futures fell 1.10%, at $4,358.70 USD/oz.

03 Top News

1. Oracle beat profit and revenue expectations, signaling robust AI-driven cloud demand. The company added more than $30 billion in new AI cloud contracts, lifting backlog to $664 billion. Management said most deals won’t require heavy chip spending, easing cash-burn fears.

2. Apple’s premium $1,999 foldable “iPhone Duo” spurred carrier promotions to entice buyers. Wireless firms are offering aggressive trade-in credits and multi-year plans. Early search and social-media data show a surge in consumer interest despite the steep price tag.

3. The U.S. Treasury expanded “Operation Economic Outcast,” sanctioning entities that finance Iranian-aligned militias. The move targets firms supporting Kata’ib Hezbollah and Hezbollah, aiming to tighten economic pressure on Iran. Affected businesses face asset freezes and transaction bans.

4. U.S. 30-year fixed mortgage rates climbed above 7%, the highest in over a year. Rising Treasury yields and geopolitical tensions have pushed borrowing costs higher. Economists warn the increase may further chill an already subdued housing market.

5. Producer-price inflation accelerated as energy costs surged. The Producer Price Index rose 0.4% in August, matching forecasts but highlighting mounting cost pressures. Elevated diesel and gasoline prices threaten to filter through to consumer goods.

6. WTI crude topped $100 amid Middle East supply fears, lifting energy markets. Renewed attacks on regional shipping lanes and refineries stoked supply anxiety. Analysts caution prices are now in overbought territory but see limited near-term relief.

7. U.S. natural-gas storage grew by 40 Bcf, undershooting seasonal norms. Analysts note milder weather tempered demand, yet injections may rise before heating season. Henry Hub futures edged up 0.4% to $2.83/MMBtu after the report.

8. Silver Lake and Intel-backed Altera are reportedly planning a U.S. IPO that could exceed $2 billion. Sources say banks have been engaged for a confidential filing in coming weeks. A successful listing would be the largest semiconductor IPO since Arm’s 2023 debut.

9. Rising fuel costs are squeezing U.S. consumers, with diesel near record highs. Analysts warn expensive diesel will lift shipping and grocery bills, compounding inflation concerns. Gasoline averages have climbed over $4.25 per gallon nationwide.

10. Nvidia CEO Jensen Huang defended the firm’s “circular” financing of AI data-center projects. Speaking at a technology conference, Huang said providing financial backstops yields “a hundredfold” return in demand for Nvidia chips. Shares closed down 2.26% before the comments.

Sources: Reuters, Dow Jones, public market data Disclaimer: This content is for reference only and does not constitute investment advice.