Shares slip as oil jumps and bond yields stay high
SPY•Global shares fell on Thursday as oil prices settled 4% higher and bond yields remained elevated. The S&P 500 dropped about 0.5% and the Nasdaq nearly 1.3%, while the U.S. 10-year Treasury yield dipped 5 basis points to 5.227%.
1. Stocks and yields
Wall Street’s main indexes fell, with the S&P 500 down about 0.5% and the Nasdaq off nearly 1.3%. The U.S. 10-year Treasury yield dipped 5 basis points to 5.227% after a 30-year bond auction drew solid demand. The pan-European STOXX 600 fell 0.75%, while Japan’s Nikkei lost 1.4% and South Korea’s KOSPI slumped 2.6%.
2. Oil and AI financing
Oil prices settled 4% higher, with Brent crude at $104.28, as concerns grew about the Middle East war and supply disruptions from a hurricane approaching the U.S. Gulf Coast. Broadcom was looking for $50 billion in financing, while SpaceX planned to issue $30 billion in investment-grade debt and raise $10 billion in loans to buy chips from Nvidia.
3. Company earnings
Samsung Electronics reported a 783% jump in third-quarter operating profit to 107.4 trillion won ($80.17 billion), but its shares fell 2.4%. TSMC reported record third-quarter revenue of T$1.49 trillion ($46.71 billion), up 50% from a year earlier; its shares fell 1.35%.
