S&P 500, Nasdaq retreat from record highs as yields and oil climb
SPY•The S&P 500 fell 0.57% and the Nasdaq dropped 0.67% in late-morning trading as Treasury yields and oil prices climbed. Brent crude rose above $100 a barrel, while the 30-year Treasury yield briefly reached its highest since 2002.
1. Stocks retreat
The Nasdaq and S&P 500 eased from record highs on Wednesday as rising Treasury yields and oil prices kept investors cautious ahead of the Federal Reserve’s September meeting minutes. At 11:26 a.m. ET, the Dow was down 1.06%, the S&P 500 0.57% and the Nasdaq Composite 0.67%.
2. Yields and oil rise
Brent crude moved back above $100 a barrel as Middle East supply concerns persisted. The 30-year Treasury yield briefly rose to its highest since 2002 and was last at 5.68%. Traders widely expect the Fed to hold rates steady in October, while a December hike remains on the cards.
3. Chips and housing fall
The Philadelphia chip index fell 1.9%, with Nvidia down 0.9%. The housing-stock index dropped 3.1% to a 17-month low, and eight of the 11 S&P 500 sectors traded lower. Third-quarter earnings season is set to begin next week; analysts expect aggregate S&P 500 earnings growth of 30.6%.
