Oil reversal lifts spirits
SPY•US stocks rose on Tuesday as oil prices fell from six-month highs, while longer-dated Treasury yields also declined. The S&P 500 gained 0.3%, the Dow rose 1% and the Russell 2000 climbed 1.7%.
1. Stocks rebound as oil retreats
US stocks rose on Tuesday, reversing earlier weakness as oil prices pulled back from six-month highs. The S&P 500 gained 0.3%, the Dow rose 1% and the Russell 2000 advanced 1.7%, its biggest rise since August 4. Nine S&P 500 sectors rose, led by healthcare’s 2.3% gain; communications services fell 0.9%. Brent crude closed down 0.7% and WTI fell 1.8%, after both hit six-month peaks.
2. Energy costs remain in focus
Brent briefly nudged $112 a barrel and WTI rose above $110. WTI was nearly 80% more expensive than a year earlier, and the article said supply-driven inflationary pressures were becoming increasingly difficult for policymakers to look through.
3. Cloud firms and bond demand
South Korean neocloud firm Elice fell 32% on its debut, the worst debut in the country for a company that raised more than $100 million in an IPO. Iren shares had lost almost 50% in the past month, while CoreWeave and Nebius had each fallen 35% in two weeks. In Japan, a 20-year government bond auction drew record demand, with a bid-to-cover ratio of 5.84; the US Treasury was due to sell $13 billion of 20-year bonds on Wednesday.
