The U.S. 10-year Treasury yield broke above 5% on Tuesday, and crude oil stormed past $105 a barrel, a combination that left every major U.S. equity index in the red at midday.
President Donald Trump said on Truth Social that “the world’s diesel price rise is mostly caused by the Russia/Ukraine War, not Iran.”
West Texas Intermediate crude jumped 3.7% to $105.12 a barrel after Saudi Aramco canceled or delayed cargoes to European refiners.
Brent crude rose 2.4% to $108.20. Heating oil surged 5.5% and gasoline futures climbed 3.2%, with U.S. diesel prices now averaging $6.26 a gallon, surpassing the previous record set in 2022.
The 10-year Treasury yield rose for the fifth straight session, climbing to 5.04% before settling near 5.00%. The 30-year yield stood at 5.37% and the 20-year at 5.40%.
Treasury Secretary Scott Bessent told lawmakers that “the need to address [the] deficit is one factor affecting 10-year treasury bond yield,” while stressing the Treasury does “not set equilibrium price for yield levels.”
Traders are assigning roughly a 92% probability to a 25-basis-point rate hike from the Federal Reserve on Wednesday, which would be the first increase since July 2023.
Across U.S. equity markets by midday Tuesday, losses were broad-based but orderly, with nine of 11 S&P 500 sectors lower.
The S&P 500 slipped 0.5% to 7,580.85, hitting its lowest level in three weeks. The Dow Jones Industrial Average was the clear laggard, shedding 496 points, or 1%, to 51,925.70.
The Nasdaq 100 fell 0.6% to 28,946.97. Gold eased 0.2% to $4,290.64 an ounce, leaving the metal down 2.8% over the past month as a fifth straight day of dollar gains capped bullion.
Tuesday’s Performance In Major US Indices
| Index | Last | % Change | MTD | YTD |
|---|---|---|---|---|
| S&P 500 | 7,580.85 | -0.5% | -1.3% | +11.0% |
| Dow Jones | 51,925.70 | -1.0% | -2.3% | +8.1% |
| Nasdaq 100 | 28,946.97 | -0.6% | -1.7% | +14.7% |
| Russell 2000 | 2,865.28 | -0.9% | -3.3% | +15.5% |
According to the Benzinga Pro platform:
- The Vanguard S&P 500 ETF (NYSE:VOO) fell 0.5%.
- The SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA) slid 0.9%.
- The Invesco QQQ Trust (NASDAQ:QQQ) dropped 0.6%.
- The iShares Russell 2000 ETF (NYSE:IWM) declined 1.2%.
Drillers Cash In While 5% Yield Crushes The Multiples
The Energy Select Sector SPDR Fund (NYSE:XLE) was the only S&P 500 sector ETF with a meaningful gain, rising 1.9% and pushing its year-to-date advance to 49%.
The Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY) was the worst performer, down 1.4%, followed by the Utilities Select Sector SPDR Fund (NYSE:XLU), down 1%.
At the industry level, the SPDR S&P Oil & Gas Exploration & Production ETF (NYSE:XOP) led all groups with a 2.9% gain, while the VanEck Oil Services ETF (NYSE:OIH) advanced 1.9%. APA Corp. (NASDAQ:APA) jumped 4.8%, with Diamondback Energy Inc. (NASDAQ:FANG) up 3.5%, EOG Resources Inc. (NYSE:EOG) up 3.2% and Devon Energy Corp. (NYSE:DVN) up 3.2%.
The pain was concentrated in rate-sensitive and consumer-facing groups. The Invesco Solar ETF (NYSE:TAN) slid 2.5%, the SPDR S&P Retail ETF (NYSE:XRT) fell 2.4%, the U.S. Global Jets ETF (NYSE:JETS) dropped 1.8% on higher fuel costs, and the iShares U.S. Home Construction ETF (BATS:ITB) lost 1.5% with mortgage rates anchored to a 5.4% 30-year.
Forgent Power Solutions Inc. (NYSE:FPS) was the single best performer in the Russell 1000, surging 11.5% after the electrical distribution equipment maker reported fiscal fourth-quarter adjusted earnings of 25 cents per share, ahead of the 23-cent consensus, on revenue of $461.7 million versus $425.6 million expected.
Skyworks Solutions Inc. (NASDAQ:SWKS) jumped 10.5% and Qorvo Inc. (NASDAQ:QRVO) rose 7.4% as merger-arbitrage spreads on their $22 billion combination continued to compress, after CEO Phil Brace said last week that the deal has entered its final regulatory stage with China’s SAMR review targeting a year-end close.
The RF complex rallied with them: Qualcomm Inc. (NASDAQ:QCOM) climbed 3.7% and Cirrus Logic Inc. (NASDAQ:CRUS) added 4.6%.
Life-science tools were the day’s standout group as executives presented at the Morgan Stanley 24th Annual Global Healthcare Conference.
Revvity Inc. (NYSE:RVTY) rose 6.9% after its conference appearance, with Thermo Fisher Scientific Inc. (NYSE:TMO) up 3.2%, Quest Diagnostics Inc. (NYSE:DGX) up 3.4%, Illumina Inc. (NASDAQ:ILMN) up 5.5% and Tempus AI Inc. (NASDAQ:TEM) up 5.6%. Caris Life Sciences Inc. (NASDAQ:CAI) rose 6.1%, moving in sympathy with the diagnostics and tools complex.
The steepest decline in the Russell 1000 belonged to Ascendis Pharma A/S (NASDAQ:ASND), down 11.9% after the Danish biotech said Monday evening that its collaboration with Novo Nordisk has been terminated and that all rights to TransCon products in metabolic and cardiovascular disease – including once-monthly TransCon Semaglutide – will revert to Ascendis.
Wingstop Inc. (NASDAQ:WING) tumbled 11.2%, caught in a broad selloff of restaurant equities that also hit CAVA Group Inc. (NYSE:CAVA), down 7.4%, Chipotle Mexican Grill Inc. (NYSE:CMG), down 6.1%, and Texas Roadhouse Inc. (NASDAQ:TXRH), down 4.8%.
Circle Internet Group Inc. (NYSE:CRCL) dropped 8.9% ahead of a Senate cloture vote on the Clarity Act scheduled for 2:15 p.m. ET, with a revised draft of the bill reportedly imposing strict limits on stablecoin yields.
Coinbase Global Inc. (NASDAQ:COIN) fell 5.9% alongside it.
Tuesday’s Russell 1000 Top Gainers
| Name | % change |
|---|---|
| Forgent Power Solutions, Inc. | +11.46% |
| Skyworks Solutions, Inc. | +10.52% |
| Qorvo, Inc. | +7.41% |
| Revvity, Inc. | +6.85% |
| Caris Life Sciences, Inc. | +6.11% |
Tuesday’s Russell 1000 Top Losers
| Name | % change |
|---|---|
| Ascendis Pharma A/S | -11.90% |
| Wingstop Inc. | -11.22% |
| Axon Enterprise, Inc. | -9.82% |
| Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) | -9.13% |
| Circle Internet Group, Inc. | -8.88% |
Photo: Shutterstock AI on Shutetrstock.com
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