Stock market today: Dow falls, S&P 500 and Nasdaq retreat from records amid bond market jitters
US equities declined on Wednesday morning as global bond yields climbed, while <a s September meeting.
The Dow Jones Industrial Average (^DJI) fell 0.6%. The S&P 500 (^GSPC) dropped 0.2%, and the tech-heavy Nasdaq Composite (^IXIC) retreated 0.2%, with both indexes pulling back from record highs.
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The yield on 30-year Treasury (^TYX) bonds reached its highest point since 2002 before paring back some of those gains. The 30-year yield finished the session at 5.66%.
During the afternoon, <a s September meeting, which suggested that policymakers view another rate hike as likely before the end of the year, though no specific timeline was provided. As of Wednesday, traders were pricing in approximately 17% odds of a rate hike at the Fed's October meeting next week.
Market sentiment had been more optimistic earlier in the week as strong earnings estimates helped push major indexes to all-time highs. However, as Brian Sozzi noted on Tuesday, those records mask a highly concentrated market where the index’s top three holdings—Nvidia (NVDA), Apple (AAPL), and Microsoft (MSFT)—represent roughly one-fifth of the S&P 500.
Factors that have pressured markets throughout the year remain potential obstacles. Brent crude oil futures (BZ=F) are hovering near $100 per barrel amid ongoing Houthi attacks in the Middle East.
Regarding the earnings calendar, Levi Strauss & Co. (LEVI) and Applied Digital (APLD) are scheduled to report their results.
S&P 500, Nasdaq retreat from record highs as bond yields rise, Nvidia slips from all-time high
Stocks moved away from record highs on Wednesday as bond yields trended upward and oil prices climbed back toward $100 per barrel.
The Dow Jones Industrial Average (^DJI) declined 0.6%. Meanwhile, the S&P 500 (^GSPC) and the tech-heavy Nasdaq Composite (^IXIC) fell 0.2% from their record peaks.
AI chip leaders Nvidia (NVDA) and AMD (AMD) also saw their shares slip less than 1% from their all-time highs.
Bitcoin (BTC-USD) dropped to $83,000 following forced <a likely be appropriate by year end"
The Federal Reserve minutes from the September policy meeting indicated that officials are leaning toward an additional rate hike before the year concludes.
“With regard to the outlook for monetary policy beyond the current meeting, most participants assessed that another increase in the target range for the federal funds rate would likely be appropriate by year end,”
However, the minutes noted that participants “emphasized that they approached each meeting with an open mind and decisions at future meetings would depend on incoming information its implications for the outlook balance of risks.”
These 7 major S&P 500 stocks need to rally at least 200% to reclaim their peaks
Brian Sozzi reports:
It will be a long journey back to all-time stock price highs for several well-known companies currently navigating difficult industry conditions and management errors.
Seven S&P 500 (^GSPC) stocks with market capitalizations exceeding $20 billion require a gain of at least 200% to return to their record highs, according to the Bespoke team. These include: PG&E (PCG), PayPal (PYPL), Ford (F), Nike (NKE), Las Vegas Sands (LVS), Zoetis (ZTS), and Crown Castle (CCI).
PayPal and Nike serve as examples of the trend connecting these firms: underwhelming financial years and declining investor confidence.
SailPoint CEO: AI agents need a ‘kill switch’ to stop the worst from happening
Humans should have the ability to immediately deactivate AI agents if they begin to negatively impact a business.
“We talk about discover, govern, and protect. The ultimate protection is a kill switch,” SailPoint (SAIL) CEO Mark McClain said on Yahoo Finance’s Sozzi Unleashed. “But we’re also beginning to try to get folks to understand there’s a danger in an unsophisticated kill switch.”
Constellation Brands stock falls despite Corona maker posting better-than-expected results
Constellation Brands (STZ) shares dropped 5% even though the producer of Corona and Modelo beer outperformed Wall Street’s earnings expectations.
For the second quarter, Constellation Brands reported $2.63 billion in net sales, exceeding the $2.54 billion anticipated by analysts, according to S&P Global Market Intelligence consensus data. Adjusted earnings per share of $3.74 also surpassed the projected $3.55.
Constellation Brands noted that off-premise sales, which include beverages purchased at grocery and convenience stores, saw a decline, while on-premise sales at bars and restaurants increased.
This trend was consistent during the World Cup in June and July, where on-premise volumes remained strong, but off-premise World Cup sales fell short of industry expectations.
The company maintained its full-year adjusted earnings per share guidance of $11.20-$11.90. It continues to project beer sales between down 1% and up 1%, wine sales between down 1% and up 1%, and enterprise sales between down 1% and up 1%.
