Markets in 5Tuesday, October 13
Chip selloff and oil gains split Wall Street as Asia slides
US stocks ended mixed on a thin holiday session as chip shares fell and energy rose, Asian markets sank overnight, and bank earnings and Wednesday's CPI come next.
Stocks
Wall Street ends mixed as chip stocks fall again
US stocks closed mixed on Monday in thin holiday trading. The Dow rose 0.38% to 51,850.55, while the S&P 500 slipped 0.06% to 7,807.24 and the Nasdaq Composite lost 0.44% to 27,245.90. The Russell 2000 fell 0.45%. The Wall Street Journal tied the split to attacks in Ukraine and the Middle East, which pushed oil higher.
Sectors
Energy and staples lead while technology lags
Energy gained 1.45% and consumer staples rose 1.17%, the best-performing sectors, according to TheStreet. Technology fell 1.25% and consumer discretionary lost 0.53%. The semiconductor ETF SMH dropped 2.05% for a fifth straight session, with Micron down 3.88% and Intel down 3.20%. Lumentum fell 7.42%, while Fair Isaac gained 10.4%.
Global
Asian shares slump as Kospi drops 6.5%
Asian stocks fell overnight, tracking US technology weakness and geopolitical tension, the Wall Street Journal reported. South Korea's Kospi dropped 6.5%, with SK Hynix and Samsung each down about 8%, amid concern over Chinese competition and crowded AI positioning. The MSCI Asia Pacific Index fell 1.7%, and Japan's Nikkei lost 2.0% to 67,644.31.
Rates
Treasury yields edged higher in Friday's last reported close
Bond markets were closed Monday for Columbus Day, so the latest official Treasury data is from Friday, Oct. 9. The 10-year yield was 5.24%, up 2 basis points on the day, and the 2-year was 4.80%. The 2s10s spread was 44 basis points. Overnight, the IMF warned government bond yields could spike in a disorderly way as debt and inflation risks worsen.
Commodities
Oil climbs on Middle East attacks as gold slips
Brent settled about 1.8% higher near $106.6 after topping $107 intraday, and WTI rose about 2.0% to near $93.7, according to Strategitz, as Saudi Arabia reported new drone and cruise-missile attacks. Gold fell 0.60% to $4,168.78 an ounce, per Trading Economics. The dollar index rose 0.36% to 102.58, and EUR/USD slipped 0.41%.