Tag: jobless claims

  • US Stock Futures Decline as Traders Increase Bets on October Fed Rate Hike

    US Stock Futures Decline as Traders Increase Bets on October Fed Rate Hike

    US stock futures fell Thursday, September 24, as rising Treasury yields and oil prices renewed concerns about inflation and further Federal Reserve rate increases. A drop in Oracle shares added pressure on technology stocks before the opening bell.

    Why are US Stock Futures Falling?

    NASDAQ-100 futures fell about 1% in early trading. S&P 500 futures lost 0.6%, while Dow Jones Industrial Average futures declined 159 points, or 0.3%. The moves pointed to a second day of losses for the US stock market after all three major indexes closed lower on Wednesday.

    The S&P 500 ended Wednesday at 7,706.03, down 0.75%. The NASDAQ Composite fell 1.13% to 26,936.04, and the Dow dropped 352.10 points to 51,511.59. Thursday’s futures figures remained subject to change before regular trading began.

    Oracle shares fell more than 5% before the bell after Bloomberg reported that the company had cited force majeure in connection with a New Mexico data center project. According to the report, the provision could protect Oracle if construction faces delays. The reported step drew attention to the timing and cost of data centers used for artificial intelligence.

    How are Treasury Yields and Oil Prices Affecting Stocks?

    The 10-year Treasury yield rose to about 5.15%, near a level last reached in 2007. Meanwhile, the 30-year yield touched 5.446%, its highest level since 2004. Bond yields rise when prices fall, and higher yields can increase borrowing costs for households and businesses.

    Oil also moved higher. Brent crude futures gained approximately 1% to USD 105 a barrel, while West Texas Intermediate futures rose about 1% to around USD 93. Higher fuel and transport costs can feed into the prices companies charge customers.

    Traders increased their expectations for another Federal Reserve rate increase. CME FedWatch pricing put the chance of an October hike above 70%, compared with roughly 55% a week earlier. These figures reflect market positions and can change quickly; they do not indicate a decision by the Fed.

    UBS Global Wealth Management strategists said Thursday that they expected energy disruption to remain limited. They also cautioned that market volatility could continue as investors assessed inflation, government debt and spending on artificial intelligence.

    What Did the US Jobless Claims Report Show?

    The Labor Department reported 197,000 initial unemployment claims for the week ending September 19. That was 1,000 fewer than the previous week’s revised total of 198,000. The earlier figure had first been reported as 196,000, which explains why some accounts described the new total as an increase.

    Continuing claims reached 1.719 million for the week ending September 12, up 2,000 from the revised prior-week figure. The four-week average of initial claims fell to 202,250. Together, the figures showed that claims remained low even as investors watched for any change in hiring or layoffs.

    Investors also weighed strong readings from S&P Global’s US business surveys. In a Wednesday note, BMO Capital Markets strategist Vail Hartman said the data gave policy rates and Treasury yields room to move higher. He warned that stronger demand could add to inflation pressure, although that outcome remains uncertain.

    What Else are US Stock Market Investors Watching?

    President Donald Trump and Xi Jinping were due to meet Thursday in Washington. Trade, artificial intelligence, Taiwan and the Iran war were among the expected topics. US Treasury Secretary Scott Bessent said the countries had agreed to extend their trade truce through January 10, beyond its previous November expiry. Investors awaited further details from the meeting.

    Corporate results offered another focus. Darden Restaurants shares fell after its quarterly results missed expectations, while Costco was scheduled to report after Thursday’s closing bell. The combination of earnings, bond yields and oil prices gave investors several developments to assess as regular US trading approached.

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  • UnitedHealth Lifts Dow as Chip Selloff Pressures NASDAQ and S&P 500

    UnitedHealth Lifts Dow as Chip Selloff Pressures NASDAQ and S&P 500

    The S&P 500 and NASDAQ Composite fell on Thursday as semiconductor shares extended their decline, offsetting gains across much of the market. Strong earnings from UnitedHealth and firm economic data supported the Dow Jones Industrial Average, but technology losses kept pressure on the other major indexes.

    At 10:00 a.m. ET, the Dow rose 82 points, or 0.16%, to 52,740.92. The S&P 500 fell 0.39% to 7,545, while the NASDAQ dropped 1% to 26,100. Eight of the 11 S&P 500 sectors traded higher, showing that weakness remained concentrated in large technology names.

    Chip Stocks Lead the NASDAQ Lower

    Semiconductor shares posted the largest losses after Taiwan Semiconductor Manufacturing released its second-quarter results. Its US-listed shares fell about 2.5%, even though the company reported earnings above forecasts. Traders focused on its higher spending plan for 2026.

    TSMC raised its expected capital spending range to between $60 billion and $64 billion from $52 billion to $56 billion. The increase renewed concern over the cost of expanding artificial intelligence capacity across the chip industry. The Philadelphia Semiconductor Index fell 3.8%. Western Digital and Seagate Technology each dropped 7.3%, while Micron Technology lost 4.8%. Arm Holdings fell more than 6%, and Advanced Micro Devices and Broadcom also moved lower.

    Shiraz Ahmed of Sartorial Wealth said the chip rally is cooling, but “not because AI is losing steam.” He said AI use is still expanding across data centers, energy systems and semiconductor production.

    UnitedHealth Supports the Dow Jones

    UnitedHealth shares rose 7.8% after the health insurer posted better-than-expected second-quarter results and raised its 2026 profit forecast. The move helped keep the Dow Jones positive while the S&P 500 and NASDAQ fell. The healthcare sector gained about 2%, while consumer staples rose 2.1%. Those gains limited the broader decline, even as the information technology sector fell 1.9%.

    Meanwhile, GE Aerospace dropped 4.4% despite reporting earnings and revenue above forecasts. The company posted adjusted earnings of $2.02 per share on revenue of $12.63 billion, compared with forecasts of $1.86 and $11.86 billion. GE Aerospace also lifted its full-year guidance. United Airlines fell 2.8% as rising oil prices added pressure to its third-quarter and full-year profit outlook.

    Retail Sales and Jobless Claims Shape Rate View

    Fresh economic data showed that US consumers kept spending during June. Retail sales rose 0.2%, matching expectations. Lower gasoline prices reduced service-station receipts, while other areas of consumer spending held up. Bill Adams, Chief US Economist at Fifth Third Commercial Bank, said slower headline retail sales growth was “actually positive” since lower fuel prices drove much of the weakness. He added that the report supports second-quarter real gross domestic product growth.

    Weekly jobless claims also came in below forecasts. Initial claims fell to 208,000 for the week ended July 11, compared with expectations of 218,000. The data pointed to resilience in the labor market. Inflation reports released earlier in the week eased concern over tighter Federal Reserve policy. Traders priced an 88% chance that the central bank will leave rates unchanged at its July meeting, according to CME FedWatch data.

    Wider Market Gains Fail to Lift Major Indexes

    The market showed a split between large technology stocks and the wider group of companies. Advancing stocks slightly outnumbered decliners on the New York Stock Exchange, while declining shares held a wider lead on the NASDAQ. The Invesco S&P 500 Equal Weight ETF rose 0.6%, showing that the average company performed better than the market-cap-weighted index. The standard S&P 500 still fell as major chip and technology shares carried greater influence.

    Geopolitical concerns also stayed in focus. Reports said Iran asked Yemen’s Houthi movement to prepare for a possible closure of the Red Sea oil route if the United States strikes Iranian power facilities. The threat kept energy prices and airline costs in view during Thursday’s early trading session.

    Investors will now watch upcoming corporate earnings and economic data for clearer signals on the strength of the US economy and the Federal Reserve’s next policy move. Whether chip stocks stabilize or extend their pullback is also likely to play a key role in determining the broader market’s direction.

  • NASDAQ Surges on Chip Stock Rally as Wall Street Rebounds Amid US-Iran Tensions

    NASDAQ Surges on Chip Stock Rally as Wall Street Rebounds Amid US-Iran Tensions

    US stocks moved higher on Thursday as investors assessed the latest turn in US-Iran tensions and renewed buying in chip stocks. The NASDAQ Composite led the market, while the S&P 500 also gained. The Dow Jones Industrial Average traded near the flatline as investors balanced geopolitical risk, oil prices, labor data, and fresh interest in the AI trade.

    NASDAQ Gains as Chip Stocks Lead the Market

    The NASDAQ Composite rose 0.6% on Thursday, supported by strong gains in semiconductor shares. The S&P 500 advanced 0.3%, while the Dow Jones Industrial Average traded little changed after a weaker session on Wednesday.

    Chipmakers led the early rebound. The VanEck Semiconductor ETF climbed 4%, with Micron Technology rising 7%. Sandisk also gained 6%. The move showed that investors returned to selected technology names, even as broader market caution stayed in place.

    The chip sector drew fresh attention ahead of SK Hynix’s expected US-listed share debut. The South Korean memory chipmaker is set to list on NASDAQ, and demand for its offering has become a focus for investors tracking AI-related stocks.

    Meanwhile, traders also watched whether the latest gains could hold through the session. Semiconductor stocks had faced recent pressure, but Thursday’s move helped lift the NASDAQ above the other major US indexes.

    US-Iran Tensions Keep Markets Cautious

    Markets also tracked renewed conflict between the US and Iran. US Central Command said the United States launched fresh strikes on Iran after attacks on commercial shipping near the Strait of Hormuz. It later said another round of strikes had been completed.

    Iran also carried out attacks on targets linked to US allies in the Middle East. The exchange of fire raised concern over energy supplies and shipping routes, especially around the Strait of Hormuz, a key passage for global oil flows.

    President Donald Trump had said the ceasefire with Iran was ‘over’ after new attacks in the region. Later, he said he called Iran to make a deal, which helped ease some pressure on crude futures.

    Mason Mendez, global real assets analyst at Wells Fargo Investment Institute, said, “Any assumption of a swift return to normalized Persian Gulf exports is certainly being challenged.” He added that low global reserves and inventories could keep a geopolitical risk premium in oil prices if tensions rise further.

    Oil Prices Stabilize After Sharp Swings

    Oil prices held steadier on Thursday after sharp moves in the previous session. Brent crude slipped 0.3% in early trading after rising on Wednesday as traders reacted to the renewed fighting.

    The oil market stayed focused on possible supply disruption. Any fall in shipping activity through the Strait of Hormuz can raise concern over global supply, as the route handles a large share of seaborne crude shipments.

    Even so, investors did not move fully into risk-off trading. US stock indexes opened higher, and markets across Europe and Asia also showed mixed but generally stable trading.

    European stocks edged higher, with the Stoxx 600 up 0.1%. In Asia, Japan’s Nikkei 225 rose 1.4%, South Korea’s Kospi gained 0.62%, and mainland China’s CSI 300 closed 2.5% higher. Hong Kong’s Hang Seng index traded lower late in the session.

    Jobless Claims Add to Rate Outlook Watch

    US labor data also stayed in focus. Initial jobless claims fell to 215,000 for the week ended July 4, down 4,000 from the prior week. Economists surveyed by Dow Jones had expected 218,000 claims.

    The data showed a mild drop in new unemployment filings after an early June spike. Continuing claims, which ran one week behind, increased by 8,000 to 1.814 million.

    Investors used the report as another signal for the Federal Reserve’s policy path. A steady labor market can affect expectations for interest rates, especially as traders watch inflation, oil prices, and global tensions.

    On Thursday, the data did not stop stocks from opening higher. The S&P 500 rose 0.2% shortly after the opening bell, the NASDAQ climbed 0.2%, and the Dow added 63 points, or 0.1%, before later trading near the flatline.

    Wall Street Turns Back to AI Trade

    As Middle East tensions stayed in focus, investors also returned to the AI trade. Chip stocks gained as traders prepared for SK Hynix’s US debut and assessed demand for memory chips used in AI systems.

    Pepsi’s results added another market signal, as the company showed that some US consumers are spending carefully due to economic concerns. Its revenue still topped expectations, giving investors another view of consumer demand.

    Mendez said, “These renewed geopolitical risks could fuel near-term risk-off sentiment, however, trends of strong equity earnings momentum and ongoing AI strengths will likely continue to drive the S&P 500 Index towards our year-end target range of 7,800 to 8,000.”

    For now, the US stock market trading today shows a split picture. Chip stocks and AI names are helping the NASDAQ rise, while oil prices and US-Iran tensions keep traders alert.