Wall St turns lower as crude spikes, chip stocks weigh
SPY•SPY•SPY•SPY•U.S. stocks fell Thursday as crude prices surged on supply concerns and semiconductor shares slumped. The Dow lost 0.07%, the S&P 500 fell 0.61% and the Nasdaq dropped 1.37%.
All three major U.S. indexes declined, with the Nasdaq down the most. Semiconductor stocks fell 3.0%, while technology was the weakest of the S&P 500’s 11 major sectors and energy led the gainers.
Oil prices jumped on supply concerns after attacks on shipping in the Strait of Hormuz and a cut in U.S. output due to hurricane activity. U.S. crude has risen more than 60% this year during the Iran war. Treasury yields moved higher, and markets priced in a 67.9% probability of a December Federal Reserve rate hike.
Micron fell 4.1%, Broadcom dropped 3.9% and Oracle declined 4.9%. PepsiCo gained 2.1% after announcing additional spending cuts and lowering its annual core profit forecast. Starbucks dipped 4.2% following reports it was exploring a purchase of Chipotle, whose shares rose 7.3%; Palantir gained 1.6% after Goldman Sachs upgraded it to buy.
