4 hrs ago
Wall Street Falls as Oil Surges and Chip Stocks Slide
U.S. stocks mostly moved lower on Thursday.
The Nasdaq, which includes many technology companies, fell the most.
Oil prices jumped after attacks on ships and hurricane-related cuts to U.S. oil output raised concerns about supply.
More expensive oil can add to inflation worries.
Investors were also concerned that higher interest rates could make it harder for technology companies to pay for investments.
Chip stocks fell, even though Samsung forecast record quarterly profit.
Starbucks shares declined after reports it was considering buying Chipotle, while Chipotle shares rose.
Palantir gained after Goldman Sachs upgraded its rating.
All three major U.S. stock indexes fell Thursday, with the Nasdaq down 1.37%.
Oil prices surged amid Middle East shipping attacks and hurricane-related cuts to U.S. output.
Semiconductor stocks dropped 3.0% as investors worried higher interest rates could hinder AI investment.
Treasury yields rose, while markets priced in a 67.9% chance of a Federal Reserve rate hike in December.
Starbucks fell after reports it was exploring a purchase of Chipotle, whose shares gained 7.3%.
- Who
- U.S. stock investors and companies whose shares traded on Wall Street.
- What
- Major stock indexes fell as oil prices surged and semiconductor shares weakened.
- Where
- Wall Street and U.S. financial markets.
- When
- Thursday, October 8; the article does not specify the year.
- Why
- Supply concerns pushed crude prices higher, raising inflation and interest-rate worries; chip stocks also came under pressure.
Key facts
- Dow Jones Industrial Average
- Fell 0.07% to 51,145.18.
- S&P 500
- Fell 0.61% to 7,753.82.
- Nasdaq Composite
- Fell 1.37% to 27,160.19.
- Semiconductor stocks
- Fell 3.0% as a group.
- Oil supply concerns
- Attacks on shipping in the Strait of Hormuz and hurricane-related U.S. output cuts contributed to a crude-price jump.
- December rate hike probability
- Markets put the probability at 67.9%, according to CME's FedWatch tool.
- Notable share moves
- Chipotle gained 7.3%; Starbucks fell 4.2%; Palantir rose 1.6%.
Quotes
Christopher Waller
Federal Reserve governor
“The market is in a state of nervousness due to high oil prices, as it prepares for earnings season which basically starts next week. That's the excuse for what I believe is profit-taking.”
livemint.com
“It's a somewhat cautious market, but 'cautious' is not a dirty word.”
livemint.com
Sources
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