From mint · · 1m 20s
Wall St Dips as Oil Rises, Chip Stocks Fall
Wall Street drops as oil prices surge and semiconductor stocks slump amid Middle East tensions and rate hike fears.
In brief
Wall Street drops as oil prices surge and semiconductor stocks slump amid Middle East tensions and rate hike fears. Wall Street fell 0.07% to 51,145.18 as crude prices spiked on Middle East tensions and chip stocks dropped 3.0% due to rising interest rates. Originally reported by mint.
Wall Street Dips
Wall Street dipped on Thursday as crude prices surged on Middle East tensions and a cut in US output that fed inflation and rate-hike fears.
Stock Indexes Down
All three major US stock indexes lost ground, with the tech-heavy Nasdaq down the most at 1.37%.
Chip Stocks Fall
Chipmakers, which have soared over 80% so far this year, were clear underperformers, falling 3.0% as investors worried rising interest rates could become a headwind to AI buildout.
Oil Prices Spike
Oil prices jumped on supply concerns after a spate of attacks on shipping in the Strait of Hormuz, combined with a cut in US output due to hurricane activity.
Fed Rate Hikes
The US Federal Reserve hiked interest rates in September for the first time since July 2023, with markets expecting a December rate hike probability of 67.9%.
Market Reactions
Starbucks dipped 4.2% following reports of a potential Chipotle Mexican Grill purchase, while Palantir climbed 1.6% after Goldman Sachs upgraded its rating to 'buy'.
The takeaway
Wall Street fell 0.07% to 51,145.18 as crude prices spiked on Middle East tensions and chip stocks dropped 3.0% due to rising interest rates.
