Wall St slips as higher yields and oil prices flag inflation risk
SPY•U.S. stocks fell as oil rose 4.2% to above $104 a barrel and the 10-year Treasury yield reached 5.29%. The Dow lost 0.17%, the S&P 500 fell 0.36% and the Nasdaq dropped 0.58%.
1. Stocks edge lower
U.S. stocks declined as higher oil prices and Treasury yields stoked inflation concerns ahead of earnings season. At 9:43 a.m. ET, the Dow was down 0.17%, the S&P 500 0.36% and the Nasdaq 0.58%. Brent crude rose 4.2% to more than $104 a barrel, while the 10-year Treasury yield stood at 5.29%, near its highest level since 2002.
2. Earnings and company moves
Investors are awaiting results from major banks, including JPMorgan Chase, next week. The S&P 500 is expected to post 30.6% quarterly earnings growth, while technology and energy are expected to report the biggest gains. Wolfspeed jumped 9.6% after receiving a $1.5 billion conditional loan commitment from the U.S. Department of Defense. PepsiCo shares rose 2.1% after it cut its annual core profit forecast and said it would pursue additional spending cuts.
3. Fed outlook
Federal Reserve Governor Christopher Waller indicated a possible pause at the central bank’s upcoming meeting, while saying further rate increases would likely be needed to bring inflation to the Fed’s 2% target. Traders widely expect rates to hold steady in October, though a December increase remains possible.
