Key Takeaways
- US stocks fell as soaring oil prices and Treasury yields near multi-year highs stoked inflation concerns.
- Tech stocks, including Amazon, Tesla, and Nvidia, saw losses, while energy and consumer staples sectors gained.
- Earnings season is expected to test market gains, with big banks like JPMorgan set to report results next week.
US stocks edged lower on Thursday, with the S&P 500 and the Nasdaq slipping from record highs, as soaring oil prices and Treasury yields near multi-year highs stoked inflation concerns.
Brent crude futures surged 4.2% to over $104 a barrel, amid persistent worries about supply disruptions from the Middle East, following attacks on shipping in the Gulf and the Strait of Hormuz.
The yield on the benchmark 10-year Treasury bond stood at 5.29%, close to its highest mark since 2002, exacerbating fears of rising inflation and tightening financial conditions.
Megacap growth stocks, including Amazon, Tesla, and Nvidia, were broadly lower, with shares down between 0.3% and 1.3%.
Chip-related companies also faced pressure, with Marvell Technology and Intel losing about 3% each, and AMD down 2%.
Forecasts of record quarterly profit from memory-chip giant Samsung Electronics failed to lift sentiment, and its shares closed lower in South Korea, while Micron Technology dropped 1.4%.
Tech stocks, particularly those in the technology and energy sectors, experienced significant declines, while energy and consumer staples sectors saw gains, rising about 2% and 1%, respectively.
Utilities were marginally higher, with the Dow Jones Industrial Average falling 88.19 points, or 0.17%, to 51,096.19, the S&P 500 losing 28.08 points, or 0.36%, to 7,773.69, and the Nasdaq Composite shedding 155.07 points, or 0.58%, to 27,383.62.
Art Hogan, chief market strategist at B. Riley Wealth, noted, 'We’ve got dueling headwinds with energy prices and Treasury yields and light on the economic data front, kind of a wait and see on earnings which really kick off in earnest next week.'
We’ve got dueling headwinds with energy prices and Treasury yields and light on the economic data front, kind of a wait and see on earnings which really kick off in earnest next week.
Art Hogan, Chief Market Strategist at B. Riley Wealth
