US Stocks continue to decline on Tuesday as Treasury yields rise, and chipmakers experience downside pressure. This article explores the factors driving the market and provides updates on specific stocks and economic data. The risk-averse sentiment in the equity markets is prevalent as investors await the Federal Open Market Committee (FOMC) meeting scheduled for Wednesday. There is growing concern about the possibility of more hawkish remarks regarding the future, as inflationary pressures fueled by surging oil prices raise concerns. Meanwhile, WTI crude oil remains steady at $91 per barrel, reaching a high of $92.25 during early European trading hours. Treasury yields are on the rise, with the 10-year benchmark surging to 4.34%, the highest level since October 2007. In Tuesday’s trading, all sectors on Wall Street showed losses. The S&P 500 fell 0.8%, while both the Nasdaq 100 and the Dow Jones Industrial Average slipped 0.9%. Surprisingly, small caps fared relatively better, with the Russell 2000 index down 0.6%. Looking at specific exchange-traded funds (ETFs), the SPDR S&P 500 ETF Trust (SPY) and the SPDR Dow Jones Industrial Average ETF (DIA) both experienced declines of 0.8% and 0.9% respectively, while the Invesco QQQ Trust (QQQ) dropped by 0.9%. Among the different S&P 500 sectors, the Consumer Discretionary Select Sector SPDR Fund (XLY) was the worst performer, down 1.2%. The Energy Select Sector SPDR Fund (XLE) and the Industrials Select Sector SPDR Fund (XLI) also saw similar decreases. On the other hand, the Utilities Select Sector SPDR Fund (XLU) showed the best relative performance, although it was still down 0.3%. In terms of economic data, building permits experienced a significant increase of 6.9% in August, surpassing market expectations. However, housing starts saw a sharp decline of 11.3% on a month-over-month basis, reaching the lowest level since June 2020 and falling significantly below the forecast. Several stocks were in focus on Tuesday. Enphase Energy, Inc. (ENPH) saw a 5% increase in its stock price, thanks to growing adoption of Enphase Energy Systems by installers in Australia. United States Steel Corporation (X) rose over 1% in premarket trading following a positive preannouncement. Nio, Inc. (NIO) experienced a 15% drop after announcing a $1 billion convertible note offering. CBOE Global Markets, Inc. (CBOE) surged 4% following the resignation of CEO Edward T. Tilly and the appointment of Fredric J. Tomczyk as the new CEO. Walt Disney (DIS) also experienced a 3% drop after revealing plans to increase investment in the parks, experiences, and products segment. Steelcase, Inc. (SCS) is set to report its quarterly results after the market closes. In terms of commodities and bonds, crude oil fell 0.3%, while Treasury yields were higher. Gold and silver prices also experienced minor declines. Bitcoin, on the other hand, rose by 1.5% to $27,167. Overall, Tuesday’s market performance reflects a cautious sentiment as investors await the outcome of the FOMC meeting and react to various economic indicators and company news.

By James TaylorSeptember 19, 2023Updated:September 19, 2023No Comments1 Min Read