Stocks Rise as Falling Crude Prices Dampen Bond Yields

The S&P 500 Index ($SPX) rose 0.72%, the Dow Jones Industrial Average ($DOWI) climbed 0.82%, and the Nasdaq 100 Index ($IUXX) gained 0.50% today. September E-mini S&P futures (ESU26) were up 0.56%, while September E-mini Nasdaq futures (NQU26) increased 0.33%.

Market gains followed a rebound from Tuesday’s sharp selloff, with investors eyeing Micron Technology’s earnings release to gauge the pace of artificial‑intelligence adoption. Micron, a key beneficiary of the AI infrastructure boom, has risen over 260% year‑to‑date and was a strong driver of today’s market rally.

The inflow of capital into AI hardware and its supply chain supports equity valuations. South Korea’s Kospi index added over 3% after SK Hynix announced a $29 billion U.S. listing to finance expanded chip‑making capacity.

Home‑building and building‑materials stocks rallied on the passage of the 21st Century Road to Housing Act, while airlines and cruise operators benefitted from a 3.5‑month low in crude oil prices. Conversely, U.S. May new‑home sales fell to a four‑month trough, and mining stocks slipped as gold, silver, and copper prices dropped to multi‑month lows.

Reduced crude prices lowered inflation expectations and bond yields, boosting equity sentiment. WTI crude fell more than 4% to a 3.5‑month low as increased tanker activity through the Strait of Hormuz expanded global supply. The 10‑year Treasury yield fell 8 basis points to 4.41%, its lowest in six weeks.

U.S. mortgage‐bank applications rose 1.0% in the week ended June 19, with mortgage refinance applications up 3.0% and the average 30‑year fixed‑rate mortgage falling 1 basis point to 6.59%.

The U.S. first‑quarter current‑account deficit widened to $225.8 billion, exceeding the expected $208.9 billion. Markets discounted a 32% probability of a 25‑basis‑point rate hike at the July 28‑29 FOMC meeting.

International equity markets were mixed. The Euro Stoxx 50 slipped to a one‑week low, down 0.39%. China’s Shanghai Composite added 0.11%, while Japan’s Nikkei 225 fell 0.88% to a one‑week low.

Interest Rates

September 10‑year Treasury notes (ZNU6) tracked higher, with the 10‑year yield falling 9 basis points to 4.06%. The yield reached a six‑week low of 4.406%. Falling crude prices dampened inflation expectations, supporting Treasury prices. The 10‑year breakeven inflation rate fell to a 14‑month low of 2.176%.

European government bond yields moved lower: the 10‑year German bund dropped 5.7 basis points to 2.863%, and the 10‑year UK gilt fell 7.8 basis points to 4.676%, the lowest in three months.

German IFO business confidence rose 0.6 to 85.6, above expectations of 85.5. The ECB market discounted a 7% chance of a 25‑basis‑point rate hike at its July 23 meeting.

US Stock Movers

Home‑builders and suppliers led the market, with KB Home up 16% and Builders Firstsource up 11%. Lennar, D.R. Horton, PulteGroup, and Toll Brothers gained over 7%. Home Depot also jumped over 4%.

Airlines and cruise operators lifted higher as lower fuel costs improved profitability prospects. Alaska Air Group, United Airlines, and American Airlines all rose over 6%. Royal Caribbean, Delta, Carnival, Norwegian, and Southwest added between 3% and 5%.

Travel companies surged on lower fuel costs. MakeMyTrip rose over 10%, Expedia over 9%, Booking Holdings over 8%, and Airbnb and TripAdvisor captured gains of 4% or more.

Mining shares fell. Anglogold Ashanti, Barrick Gold, and Coeur Mining dropped more than 4%. Freeport‑McMoRan, Southern Copper, Hecla Mining, and Newmont also slipped around 3%.

Energy producers and service providers faced pressure as crude dropped over 4%. Baker Hughes, Halliburton, APA Corp, ConocoPhillips, SLB, Devon Energy, Diamondback, Exxon Mobil, Occidental, Chevron, Marathon Petroleum, Phillips 66, and Valero all declined between 1% and 5%.

Telecommunication firm Twilio up 3% after Goldman Sachs added a buy rating with a $300 target. Honeywell Aerospace climbed 3% after S&P Dow Jones announced its addition to the S&P 500. Terex also gained 3% following new coverage.

FuelCell Energy rose 1% after announcing a 380 MW clean‑power supply agreement for data centers. Cerebras Systems fell 15% after missing revenue expectations. Flowserve dropped 7% following a downgrade to hold, and Principal Financial Group fell 4% after a downgrade to underperform.

FedEx missed expectations in its first earnings post‑spin‑off, slipping 1%.

Earnings Reports (24 June 2026)

Daktronics, HB Fuller, Immersion, Jefferies, Methode Electronics, Micron, Millerknoll, Novagold Resources, Paychex, and Worthington Steel.

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