Stock markets retreated on Friday amid concerns about rising bond yields and the ongoing strike by the United Auto Workers union. Oil prices also climbed, reaching $90 per barrel. The strike by the union against major automakers, including Ford Motor, Stellantis N.V., and General Motors, has raised concerns about potential wage increases and their impact on the economy. President Joe Biden has emphasized the need for improved treatment of workers, advocating for a fairer distribution of profits. The increase in Treasury yields further dampened risk sentiment, with the 10-year yield inching closer to the August peak of 4.35%, last observed in November 2007. The S&P 500 fell 1%, while the Nasdaq 100 dropped 1.3%. Blue chips in the Dow Jones performed better but still closed 0.5% lower for the day. Small caps fell 1.2%. In terms of ETF performance, the SPDR S&P 500 ETF Trust (SPY) was 1.2% lower, the SPDR Dow Jones Industrial Average ETF (DIA) fell 0.9%, and the Invesco QQQ Trust (QQQ) dropped 1.4%. Among sector ETFs, the Health Care Select Sector SPDR Fund (XLV) fell 0.2%, outperforming other sectors. The Technology Select Sector SPDR Fund (XLK) was the worst performer, down 1.6%, followed by the Consumer Discretionary Select Sector SPDR Fund (XLY), which fell 1.3%. The University of Michigan’s U.S. consumer sentiment index declined in September, falling short of expectations. Current economic conditions dropped, while future expectations improved. Year-ahead inflation expectations decreased, reflecting consumer anticipation of reduced inflationary pressures. In specific stock news, Adobe, Inc. (ADBE) fell over 4% following the release of its quarterly results. Apellis Pharmaceuticals (APLS) rose 7% after Wells Fargo upgraded the company. Planet Fitness Inc (PLTN) hit a three-year low after the CEO stepped down. In commodities and bonds, crude oil fell 0.3%, with the United States Oil Fund ETF (USO) also lower. Treasury yields were slightly higher, and the iShares 20+ Year Treasury Bond ETF (TLT) was 0.3% lower. The dollar eased, while gold and silver prices rose. Bitcoin was lower. Overall, risk appetite was affected by inflationary pressures, the UAW strike, and climbing bond yields.
By James Taylor
James Taylor
A writer and finance enthusiast who loves diving into the exciting world of stocks, commodities, forex, and crypto. I'm all about making the financial markets less intimidating and more accessible, so I write engaging content that simplifies complex concepts and shares practical investment strategies. Whether you're a seasoned investor or just getting started, I've got your back! But hey, life isn't all about work, right? On weekends, you'll find me hanging out and having a blast with my awesome friends and family. We love bonding over shared interests, trying out new adventures, and simply enjoying each other's company. Striking that balance between work and play is super important to me, because what's the point of success if you can't share it with the people you love? So, if you're up for some financial market insights and a good dose of weekend fun, stick around! Together, we'll navigate the money world and make the most of our time off. Let's learn, grow, and create memories along the way!
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