Oil heat, chip pain send S&P 500, Nasdaq lower
SPY•The Nasdaq fell more than 1% and the S&P 500 lost about 0.5% on Thursday as oil prices surged around 3%; the Dow edged higher. The 10-year Treasury yield fell to about 5.23%.
1. Indexes end mixed
Wall Street’s main indexes ended mixed as higher oil prices revived inflation concerns, while a pullback in Treasury yields helped limit losses. US crude rose around 3% amid escalating Middle East tensions and lower US output. The 10-year Treasury yield retreated to about 5.23%, after reaching 5.3645% on Wednesday, its highest level since 2002.
2. Technology lags
The Nasdaq fell more than 1%, the S&P 500 lost 0.5%, and the Dow finished slightly higher. Technology dropped about 1.8%, while energy gained about 3%. Semiconductor stocks fell more than 3% as investors worried that elevated borrowing costs could eventually weigh on AI-related spending.
3. Small caps rebound
The Russell 2000 recovered from an intraday low of 2,762.58 to finish slightly higher at 2,794.13, leaving it down 8.9% from its record closing peak. Earlier, it had fallen as much as 9.97% from its August 14 record close.
