Stocks Mixed as Crude Oil Prices and Financial Stocks Fall

The S&P 500 Index ($SPX) (SPY) is up by +0.01% today, the Dow Jones Industrial Average ($DOWI) (DIA) is down by -0.41%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.43%.  December E-mini S&P futures (ESZ26) are up +0.03%, and December E-mini Nasdaq futures (NQZ26) are up +0.45%.

Stock indexes are mixed today, with the S&P 500 posting a 5-week high and the Nasdaq 100 posting a 3.5-month high.  Weaker crude oil prices today are easing inflation risks, lowering bond yields, and boosting market sentiment.  WTI crude oil is down nearly -1% today at a 3-week low after Japan’s Kyodo News Agency reported that Iran has proposed to reopen the Strait of Hormuz within seven days if the US blockade is lifted.

Stocks also have support on positive anticipation ahead of a summit later this week between Presidents Trump and Xi Jinping.  In addition, stock indexes rose on support from a rally in chipmakers and AI-infrastructure stocks. 

Stock indexes fell back from their best levels and turned mixed after the Sep Richmond Fed manufacturing survey fell more than expected to a 7-month low, and after T-note yields moved higher when Boston Fed President Susan Collins warned that inflation may remain above the Fed’s 2% target, suggesting she may favor additional Fed tightening.  Weakness in financial stocks are also weighing on the Dow Jones Industrials.

The US Sep Richmond Fed manufacturing survey fell -6 to a 7-month low of -2, weaker than expectations of 2.

Hawkish comments today from Boston Fed President Susan Collins suggest she may favor additional Fed tightening when she said she saw an "increased likelihood" of scenarios in which inflation remains "notably above 2%." 

Oct WTI crude oil prices (CLV26) are down nearly -1% today at a 3-week low after Japan's Kyodo News Agency reported that Iran has proposed to reopen the Strait of Hormuz within seven days if the US blockade of Iranian ports is lifted.  Crude prices added to their losses on signs that diplomacy may bring an end to Middle East hostilities after a spokesman for Iran's Islamic Revolutionary Guard said that "if our national interests require us to negotiate alongside the war, we must negotiate."  In addition, people familiar with the matter said Saudi Arabia is in the early stages of restarting its East-West pipeline and resuming crude exports from its Red Sea port of Yanbu later this week.

Markets are discounting a 53% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.

Overseas stock markets are higher today.  The Euro Stoxx 50 rose to a 1.5-week high and is up +0.28%.  China's Shanghai Composite climbed to a 2-week high and closed up +0.067%.  Japan's Nikkei-225 Stock Average did not trade today with Japanese markets closed for a National holiday.

Interest Rates

December 10-year T-notes (ZNZ6) are down by -2 ticks today.  The 10-year T-note yield is up +0.8 bp to 4.959%.  T-notes gave up an early advance today and moved lower on hawkish comments from Boston Fed President Susan Collins, who warned inflation may remain above the Fed’s 2% target, suggesting she may favor additional Fed tightening.  Supply pressures are also bearish for T-note prices as the Treasury will auction $211 billion of T-notes and floating-rate notes this week, beginning with today’s auction of $69 billion of 2-year T-notes.

T-notes initially moved higher today after WTI crude oil fell more than -1% to a 3-week low, easing inflation expectations.  Also, today’s larger-than-expected decline in the Sep Richmond Fed manufacturing survey to a 7-month low is supportive for T-notes.   

European government bond yields are mixed today.  The 10-year German bund yield slid to a 1.5-week low of 3.422% and is down -1.0 bp to 3.448%.  The 10-year UK gilt yield fell to a 2-week low of 5.166% and is up +0.8 bp to 5.219%.

The Eurozone Sep consumer confidence index fell -1.0 to -16.5, weaker than expectations of -16.0.

ECB Chief Economist Philip Lane said a new wave of high energy prices means Eurozone inflation will stay elevated longer than the ECB initially anticipated.

Markets are discounting a 46% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.

US Stock Movers

Chipmakers and AI stocks are moving higher today, supporting gains in the broader market.  The iShares Semiconductor ETF (SOXX) is up +0.55% at a 5-week high.  SanDisk (SNDK) is up more than +5%, and Micron Technology (MU), Marvell Technology (MRVL), and Western Digital (WDC) are up more than +2%.  Also, Seagate Technology Holdings Plc (STX) and ARM Holdings Plc (ARM) are up more than +1%.

Financial stocks are sliding today, weighing on the broader market.  Charles Schwab (SCHW) is down more than -6% to lead losers in the S&P 500, and Raymond James Financials (RJF) is down more than -5%.  Also, Morgan Stanley (MS), JPMorgan Chase (JPM), and Wells Fargo & Co (WFC) are down more than -3%, and Bank of America (BAC), Citigroup (C), Northern Trust (NTRS), and US Bancorp (USB) are down more than -2%. 

Viking Therapeutics (VKTX) is up more than +24% after announcing results from a study showing patients taking its VK2735 GLP-1 weight-loss drug maintained up to 97% of weight loss versus 61% for placebo.

Vicor Corp (VICR) is up more than +13% after raising its guidance on Q3 revenue growth to over 20% q/q from a previous estimate of 10%, citing royalties from a non-exclusive license to Vertical Power Delivery.

Shopify (SHOP) is up more than +7% to lead gainers in the Nasdaq 100 after announcing that it was “partnering deeply” with Meta Platforms’ Muse artificial intelligence agent.

AutoZone (AZO) is up more than +6% after reporting Q4 EPS of $56.05, better than the consensus of $54.03.

Amgen (AMGN) is up more than +4% to lead gainers in the Dow Jones industrials after saying the primary endpoint was met in a Phase 3 study evaluating its dazodalibep drug in adults with Sjogren’s disease, a chronic autoimmune condition. 

Quest Diagnostics (DGX) is down more than -4%, and Labcorp Holdings (LH) is down more than -3% after the Centers for Medicare and Medicaid Services (CMS) released new preliminary medicare payment rates for lab services.

Earnings Reports (9/22/2026)

AutoZone Inc (AZO), KB Home (KBH), MillerKnoll Inc (MLKN), Thor Industries Inc (THO), Worthington Enterprises Inc (WOR).

On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.