Markets in 5Friday, October 16
Tech selloff eases as yields fall and producer prices spike
Stocks recovered on Thursday as investors rotated out of tech into defensive names, while producer prices surged and the 10-year yield eased to 5.10%.
Stocks
S&P 500 snaps three-day losing streak with 0.3% gain
The S&P 500 closed at 7,744.06 on Thursday, up 0.3% or 25.12 points, ending a three-day losing streak and sitting just below last week's record high. The Dow Jones rose 1.1% to 52,177.69, the leading gain among the majors, while the Nasdaq Composite added only 0.1% to 26,713.03 after falling more than 1% intraday. The Russell 2000 jumped 1.4% to 2,767.27. For the week through Thursday, the S&P is down about 0.9% and the Nasdaq down 2.4%.
Rates
Ten-year Treasury yield eases to 5.10%
The 10-year Treasury par yield closed at 5.10% on October 15, down 9 basis points from 5.19% the day before and from 5.00% a month earlier. The two-year yield stood at 4.77%, leaving the 2s10s spread at 33 basis points, and the 30-year closed at 5.43%. Bonds drew safe-haven buying during the session, according to research notes, as yields eased across much of the curve.
Economy
Producer prices jump 1.3% in September, largest monthly gain since 2022
Producer prices rose 1.3% month over month in September, the largest monthly gain since March 2022 and well above the 0.6% consensus, according to CNBC. On an annual basis, the index climbed 6.3%, up from 5.6% in August. Energy drove much of the increase, with wholesale gasoline prices up 20.3%. The figures followed September consumer prices, which rose 0.6% monthly and 3.7% annually.
Sectors
Nike leads Dow gainers as consumer names rebound
Nike rose 5.3% to lead Dow gainers as beaten-down consumer names drew buyers. Salesforce gained about 4.5% and Home Depot about 4.3%, with the IGV software ETF adding about 1%. Homebuilders also advanced, with Lennar up 5.7%, D.R. Horton 4.4% and PulteGroup 3.3%, while Campbell's gained about 5% as money moved out of technology. Nvidia closed down 1.84% at 217.23.
Earnings
Kimberly-Clark rises after preliminary third-quarter beat
Kimberly-Clark gained about 4% after preliminary third-quarter results beat Wall Street estimates. Taiwan Semiconductor's American depositary receipts slipped 1.8% despite a record quarter. CoreWeave closed up 5.9% at 69.69 after reversing earlier losses, though its bonds have traded at 81 cents on the dollar, yielding more than 15%, and CNBC reported investors are charging neocloud firms more to borrow.