U.S. Stocks Give Back Ground After Early Move To The Upside
Large-cap tech gains masked weakness as breadth narrowed and 75% of S&P 500 stocks fell this month, Morgan Stanley analysts said.
- On Wednesday, the Dow slid 443.87 points or 0.9 percent to 50,906.05 and the S&P 500 fell 19.30 points or 0.3 percent to 7,651.54, though the benchmark index remains about 1% below its August all-time high.
- Rising oil prices up about 14% and a ten-year Treasury yield reaching 5.26% on September 29—its highest level since 2002—pressured most sectors after Fed Chair Kevin Warsh's late August Jackson Hole address prompted hawkish rate expectations.
- Morgan Stanley analysts reported that S&P 500 stocks trading above their 200-day moving average fell to 49% from roughly 75% over the summer, while nearly three-quarters of benchmark stocks declined in September as leadership concentrated.
- Gains in Apple, Nvidia, Alphabet, Microsoft and Meta Platforms masked broader weakness, with the VanEck Semiconductor ETF surging 9.41% on AI demand while Chris Toomey, Morgan Stanley managing director of private wealth management, said investors are "just being more defensive."
- Strategist Michael Wilson advised to "stick with large cap quality and add to riskier stocks in October," citing stronger earnings and lower multiples, while warning that valuation concerns persist under the 5.26% Treasury yield.
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Higher yields and oil prices pressure most S&P 500 sectors
The sharp rise in oil prices is reaching far beyond the energy market. It is amplifying inflation anxiety, pushing long-term borrowing costs higher and revealing how much of this year's equity advance depends on a small group of technology-linked companies. A widely watched measure of Treasury-market volatility rose 19% over the week, its largest increase since March and the second largest since April 2025. The move came as Brent crude climbed a…
The American stock indices did not show a single movement in the outcome of the bid on Wednesday.
U.S. Stocks Give Back Ground After Early Move To The Upside
Stocks moved mostly higher in early trading on Wednesday but gave back ground over the course of the session. The major averages pulled back well off their highs as the day progressed, with the Dow and S&P 500 sliding into negative territory. The Dow and the S&P 500 ended the session at their worst levels of the day.
The leading stock markets closed mixed on Wednesday: the Hungarian stock exchange ended trading with a significant drop, primarily due to the weakness of OTP and MOL. In the US market, the Dow Jones and S&P 500 closed in the red, while the Nasdaq managed to rise. US PCE inflation was more favorable than expected and core inflation also slowed down, while government bond yields rose. We will also address similar topics at our Portfolio Investment…
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