Stocks went down on Wednesday, adding to the big losses from the previous day. This was because rising oil prices and Treasury yields made investors less optimistic.
That’s 174 points, or 0.5%, less than it was the previous day. There were times when it was up as much as 100 points. It went down 0.3% for both the S&P 500 and the Nasdaq Composite.
The 10-year Treasury yield went up by 3 basis points and is now at its highest level since 2007. The rate on the 2-year Treasury note also went up. At the same time, U.S. crude prices went up almost 3% and were last trading above $93 per barrel.
These actions show that people are more worried than usual that inflation will last, which means the Federal Reserve will keep rates higher for longer than planned.
The industry that did the best was energy, which went up more than 2%. Marathon Oil and APA were the biggest gainers, each up more than 3%.
Recently, rising rates have made stocks less stable. For the first time since June, the S&P 500 went below the important 4,300 level on Tuesday.
The Dow also lost more than 300 points in one day, which was the most since March. It closed below its 200-day moving average for the first time since May. These losses happened after data on Tuesday about new home sales and shopper confidence didn’t match what economists thought they would show.
“The biggest worry is still inflation,” said Greg Bassuk, CEO of AXS Investments. “Investors have been very worried about not only the high rate but also how that will affect businesses with the higher costs of borrowing.”
September tends to be a bad month for stocks. The S&P 500 is down more than 4% in September, and the Dow is down more than 2%. The Nasdaq has lost more than 5% this month, making it the slowest of the three.
“We do expect a bit of this roller coaster ride to continue as the Fed and investors work through inflation, [the Fed’s] interest rate policy, and getting a better picture of where the US economy is going,” Bassuk said.
But he thinks there will be some good chances to buy near the end of October and before the end of the year.
Media stocks and MillerKnoll were two of the biggest noon movers on Wednesday.
These are the stocks that are changing the most during the middle of the day:
Media stocks—Some media and studio stocks went up on Wednesday, after the end of the nearly 150-day writers’ strike. The stock prices of Warner Bros. Discovery and Paramount Global went up by more than 2.5%.
The furniture company MillerKnoll’s stock went up more than 27% after reporting earnings for the first quarter of fiscal year 2024 that were higher than what Wall Street expected. The company also raised its earnings estimate for the full year.
Costco: The discount superstore’s stock went up 2.1% after reporting better-than-expected earnings for the fourth quarter. Executives at Costco said that the store had more customers and that memberships had grown by 8% year-over-year.
Media stocks and MillerKnoll were two of the biggest noon movers on Wednesday.
These are the stocks that are changing the most during the middle of the day:
Media stocks—Some media and studio stocks went up on Wednesday, after the end of the nearly 150-day writers’ strike. The stock prices of Warner Bros. Discovery and Paramount Global went up by more than 2.5%.
The furniture company MillerKnoll’s stock went up more than 27% after reporting earnings for the first quarter of fiscal year 2024 that were higher than what Wall Street expected. The company also raised its earnings estimate for the full year.
Costco: The discount superstore’s stock went up 2.1% after reporting better-than-expected earnings for the fourth quarter. Executives at Costco said that the store had more customers and that memberships had grown by 8% year-over-year.
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