Rebound in Tech Stocks Power Wall Street Advance as Oil Prices Ease

Barry Adams
08 Oct, 2024
New York City

Investors returned to increase stock exposure following a sell-off in the previous session, but worries of a wider war in the Middle East persisted. 

The S&P 500 index edged up 0.6% and the Nasdaq Composite advanced 1% as investors focused on the start of the earnings season and awaited results from Wells Fargo, Morgan Stanley, Bank of America, and JP Morgan. 

PepsiCo declined about 1% after the food and beverage company lowered its annual earnings outlook. 

Bond yields hovered above 4% for the second day in a row and stayed at a five-week high amid worries of a rebound in inflation following the 11% jump in crude oil prices over the last two weeks. 

Stocks have been volatile, and crude oil prices have been on the rise on the worries that Israel could strike oil infrastructure after Iran's missile attacks. 

For now, the U.S. has managed to stave off a retaliatory strike, but investors are fearful that Israel's strike could lead to a wider war that could make shipping riskier through the Strait of Hormuz. 

On the economic front, the international trade deficit declined 10% to a five-month low of $70.4 billion in August from an upwardly revised $78.9 billion in July, the Commerce Department reported Tuesday. 

Exports increased 2% from the previous month to a record high of $271.8 billion, and imports eased 0.9% to $342.2 billion. 

Trade deficit with China shrank to $27.9 billion from $31.1 billion, and with Canada, it eased to $3.1 billion from $8.1 billion. 

  

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.6% to 5,729.32, the Nasdaq Composite rose 0.9% to 18,095.15, and the Russell 2000 index fell 0.1% to 2,191.69. 

The yield on 2-year Treasury notes edged higher to 4.01%, 10-year Treasury notes inched up to 4.05%, and 30-year Treasury bonds inched higher to 4.33%.

WTI crude oil decreased $2.49 to $74.63 a barrel, and natural gas prices edged down 2 cents to $2.72 a thermal unit.

Gold fell by $2.28 to $2,640.35 an ounce, and silver decreased by $0.65 to $31.53.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 102.49.

 

U.S. Stock Movers

PepsiCo increased 1.1% to $169.11, and the food and beverage company lowered its annual earnings outlook. 

Bank of America increased 0.1% to $40.01, and the company is scheduled to release earnings next week. 

Berkshire Hathaway sold additional 9.6 million shares of the bank over the last three trading sessions and lowered its stake to 10.1%, according to a regulatory filing with the Securities and Exchange Commission. 

China-linked stocks were in focus after Chinese authorities failed to announce new stimulus measures. 

Alibaba Group decreased 6% to $110.28, Las Vegas Sands dropped 2.9% to $51.78, and Wynn Resorts declined 2.9% to $103.41. 

DocuSign jumped 8.3% to $67.95 after the company was selected to replace MDU Resources in the S&P MidCap 400 Index. 

MDU Resources advanced 3.8% to $28.50.