At 17:00 GMT, the Dow Jones Industrial Average is at 38492.57, down 360.29 or -0.93%. The S&P 500 Index is trading 5276.27, down 29.77 or -0.56% and the Nasdaq 100 Index is at 16965.34, down 54.54 or -0.32%.
Broad Market Weakness
All eleven sectors of the S&P 500 declined, with around 450 stocks trading lower. The Dow Jones Industrial Average saw two-thirds of its components fall, led by UnitedHealth’s 4% drop following negative remarks about its Medicaid business. Other healthcare stocks like Molina Healthcare, Humana, and Elevance Health also fell.
Treasury Yields Pressure Stocks
The 10-year Treasury yield rose above 4.6%, pressuring equities further. The rise followed a poorly received Treasury auction, highlighting investor concerns over inflation and economic growth trajectories.
Marathon Oil and AI Stock Picks
Marathon Oil shares soared over 8% after ConocoPhillips announced an all-stock acquisition deal. This move validated the predictions of iFi AI, an AI-based investment firm that had projected significant gains for Marathon Oil.
Positive Earnings Reports Boost Individual Stocks
Bank of America upgraded Dick’s Sporting Goods to a buy, citing a strong earnings report and improved full-year guidance. Dick’s shares were up 16% by late morning, on track for their best day since May 2021. Abercrombie & Fitch also reported outstanding sales, with first-quarter revenue exceeding $1 billion, signaling a strong resurgence for the brand.
Market Forecast
Given the mixed earnings results and rising Treasury yields, the market faces a cautious outlook. While individual stocks like Dick’s Sporting Goods and Abercrombie & Fitch show strength, broader market sentiment remains weak. Expect continued volatility as traders assess the economic indicators and Federal Reserve’s next moves.
