Oil Retreat Supports Tech Shares as Financial Stocks Drag Indexes into Mixed Trading

The S&P 500 Index ($SPX) and its SPY ETF gained 0.01%, while the Dow Jones Industrial Average ($DOWI) and its DIA ETF declined 0.41%. The Nasdaq 100 Index ($IUXX) and QQQ ETF rose 0.43%. December E-mini S&P 500 futures (ESZ26) advanced 0.03%, and December E-mini Nasdaq-100 futures (NQZ26) climbed 0.45%.

Stock indexes traded mixed, with the S&P 500 reaching a five-week high and the Nasdaq 100 touching a three-and-a-half-month high. Falling crude oil prices eased inflation concerns, pushed bond yields lower, and improved investor sentiment. WTI crude oil dropped nearly 1% to a three-week low after Japan’s Kyodo News Agency reported that Iran had proposed reopening the Strait of Hormuz within seven days if the United States lifted its blockade.

Equities also found support from expectations for a summit later this week between Presidents Trump and Xi Jinping, along with gains in semiconductor and artificial intelligence infrastructure stocks.

Indexes retreated from their session highs and finished mixed after the September Richmond Fed manufacturing survey fell more than expected to a seven-month low. Treasury yields also rose after Boston Fed President Susan Collins warned that inflation could remain above the Federal Reserve’s 2% target, indicating that she may support further monetary tightening. Declining financial shares added pressure to the Dow Jones Industrial Average.

The Richmond Fed manufacturing index dropped six points to -2, its lowest level in seven months and well below expectations for a reading of 2.

Collins reinforced a hawkish outlook by saying she saw an “increased likelihood” of scenarios in which inflation remained “notably above 2%.”

October WTI crude oil futures (CLV26) fell nearly 1% to a three-week low following the Kyodo report about Iran’s proposal to reopen the Strait of Hormuz if the US blockade of Iranian ports ended. Crude extended its decline amid signs that diplomacy could help end hostilities in the Middle East. A spokesman for Iran’s Islamic Revolutionary Guard said, “If our national interests require us to negotiate alongside the war, we must negotiate.” People familiar with the matter also said Saudi Arabia was in the early stages of restarting its East-West pipeline and preparing to resume crude exports from its Red Sea port of Yanbu later this week.

Markets assigned a 53% probability to a 25-basis-point Federal Reserve rate increase at the October 27-28 FOMC meeting.

Overseas stock markets advanced. The Euro Stoxx 50 rose 0.28% to a one-and-a-half-week high, while China’s Shanghai Composite gained 0.067% and reached a two-week high. Japan’s Nikkei 225 did not trade because domestic markets were closed for a national holiday.

Interest Rates

December 10-year Treasury note futures (ZNZ6) slipped two ticks. The 10-year Treasury yield increased 0.8 basis point to 4.959%. Treasuries surrendered an early gain after Collins suggested that inflation might remain above the Fed’s target and that additional tightening could be warranted. A heavy schedule of government debt sales also weighed on prices, with the Treasury planning to auction $211 billion in notes and floating-rate notes this week, starting with Monday’s $69 billion sale of two-year notes.

Treasury notes initially advanced as WTI crude oil fell more than 1% to a three-week low, reducing inflation expectations. The sharper-than-expected decline in the Richmond Fed manufacturing survey to a seven-month low also supported the bond market.

European government bond yields were mixed. The German 10-year bund yield touched a one-and-a-half-week low of 3.422% and was last at 3.448%, down 1 basis point. The UK 10-year gilt yield reached a two-week low of 5.166% before rising 0.8 basis point to 5.219%.

The Eurozone’s September consumer confidence index declined one point to -16.5, missing expectations for -16.0.

ECB Chief Economist Philip Lane said a new wave of elevated energy prices would keep Eurozone inflation higher for longer than the European Central Bank had initially expected.

Markets priced a 46% probability of a 25-basis-point ECB rate increase at its October 29 meeting.

US Stock Movers

Semiconductor and AI-related shares advanced, helping the broader market. The iShares Semiconductor ETF (SOXX) rose 0.55% to a five-week high. SanDisk (SNDK) gained more than 5%, while Micron Technology (MU), Marvell Technology (MRVL), and Western Digital (WDC) each advanced more than 2%. Seagate Technology Holdings (STX) and ARM Holdings (ARM) also rose more than 1%.

Financial shares declined and weighed on the broader market. Charles Schwab (SCHW) fell more than 6%, making it the S&P 500’s largest decliner, while Raymond James Financial (RJF) dropped more than 5%. Morgan Stanley (MS), JPMorgan Chase (JPM), and Wells Fargo (WFC) each lost more than 3%. Bank of America (BAC), Citigroup (C), Northern Trust (NTRS), and US Bancorp (USB) declined more than 2%.

Viking Therapeutics (VKTX) surged more than 24% after reporting study results in which patients taking its VK2735 GLP-1 weight-loss drug retained as much as 97% of their weight loss, compared with 61% for the placebo group.

Vicor (VICR) jumped more than 13% after raising its third-quarter revenue-growth guidance to over 20% quarter over quarter, from a previous estimate of 10%. The company cited royalties from a nonexclusive license to Vertical Power Delivery.

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

AutoZone (AZO) rose more than 6% after reporting fourth-quarter earnings per share of $56.05, exceeding the consensus estimate of $54.03.

Amgen (AMGN) gained more than 4% to lead the Dow’s advancers after announcing that a Phase 3 study of dazodalibep in adults with Sjogren’s disease, a chronic autoimmune condition, had met its primary endpoint.

Quest Diagnostics (DGX) fell more than 4%, and Labcorp Holdings (LH) declined more than 3% after the Centers for Medicare and Medicaid Services released new preliminary Medicare payment rates for laboratory services.

Earnings Reports (9/22/2026)

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

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