The Nasdaq composite fell on Monday as oil jumped after attacks on a Saudi airport. Investors are waiting for bank earnings and US economic data this week, while traders raised their bets on a Fed rate hike.
The technology-heavy Nasdaq composite closed lower on Monday as oil prices jumped nearly $2 a barrel after attacks on a Saudi airport. Investors also waited for banks to start the third-quarter earnings season and for economic data due this week.
The Nasdaq Composite lost 120.27 points, or 0.44%, to 27,245.90. The S&P 500 ended barely lower, down 0.06%, while the Dow Jones Industrial Average rose 0.38% to 51,850.55.
Oil climbs and chip stocks slide
Oil futures rallied after deadly strikes on Riyadh's international airport over the weekend. Energy outperformed among the S&P 500's 11 major sectors, gaining 1.5%.
Technology, down 0.9%, and consumer discretionary, off 0.7%, were the biggest sector laggards. The Philadelphia semiconductor index finished down 2.7% after hitting a three-week low. Meta, however, gained more than 3%, and Microsoft finished up 1.1% after announcing plans for major deployment of its own AI chips.
Banks report as rate-hike bets rise
Goldman Sachs, Citigroup and JPMorgan Chase report early on Tuesday. Analysts expect S&P 500 earnings to surge 30.6% in the third quarter, according to LSEG IBES data.
September readings for US consumer and producer inflation and retail sales data are also due. Stock investors have been wary of bond yields' recent advance to 24-year highs as elevated energy prices have stoked inflation concerns.
Traders now price an almost 22% chance of a Fed rate hike this month, according to CME's FedWatch tool, up from 17.7% on Friday. Cleveland Fed President Beth Hammack said the central bank should move "relatively quickly" to a more restrictive stance to fight inflation.
Source: Reuters via Investing.com
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