Oil, yields keep pressure on stocks
SPY•U.S. stocks were mixed early Thursday, with the S&P 500 and Nasdaq modestly lower as crude rose more than 4% to above $90 a barrel and the 10-year Treasury yield hovered around 5.27%.
1. Stocks face oil and yield pressure
U.S. stocks struggled for direction early Thursday as rising oil prices and elevated Treasury yields revived inflation concerns. The Dow was roughly flat, while the S&P 500 and Nasdaq were modestly lower.
2. Sector moves diverge
Energy shares gained more than 2%, leading S&P 500 sectors, while health care fell around 1.5%. Biotech and semiconductor stocks were under pressure, while software and services, transports, and gold and silver miners showed strength.
3. Small caps near correction territory
The Russell 2000 was down roughly 9.5% from its August 14 record close, near the 10% decline commonly defined as a correction. Investors were watching whether corporate results could overcome pressure from higher oil prices and elevated yields as earnings season got underway.
