Closing Bell: Stocks Lower Despite Tech Stock Strength and Drop in Oil

Major U.S. stocks indexes were down Tuesday, despite a rise in some tech stocks, following further gains in Treasury yields. 

The S&P 500 (SPX) was down 0.17%, and the Dow Industrial Average ($DJI) fell 0.26%. The tech-heavy Nasdaq-100 (NDX) gained 0.21%. The small-cap Russell 2000 (RUT) declined 0.35%. Oil prices were lower by more than 3.5% to about $89 a barrel. 

U.S. consumer confidence fell in September to its lowest level since 2014 amid concerns about the cost of living and the labor market. The benchmark 10-year U.S. Treasury yield climbed to 5.255%. See Consumer Confidence Hits COVID Era Lows, Addressing Anthropic's 'Risk to Humanity' 

Tech provided a positive note. Micron (MU) shares rallied more than 1% ahead of its earnings report after the close Wednesday. Semiconductor equipment that were higher included Lam Research (LRCX), up 3%; KLA Corp (KLAC), up 3.9%; and Applied Materials (AMAT), up 5.2%. The PHLX Semiconductor Index (SOX) rose 1.32%.  

A few Things to Watch from Tuesday’s Markets: 

The Biggest Movers in the SPX: Fair Isaac (FICO) slumped nearly 27%, the worst S&P 500 performance Tuesday, based on a mortgage scoring change that could lower its fees. Meanwhile, Carnival Cruise Lines rallied 13%, the best SPX performance, after posting record revenue in Q3, with demand appearing to hold up despite geopolitical uncertainty and higher fuel costs. 

Powering Data Center Expansion? Bloom Energy (BE) gained nearly 11% after the City of Fremont, California, said the company purchased a 158,000-square-foot facility to expand existing manufacturing operations. Morgan Stanley said the move indicates "continued strong demand" for Bloom, which makes and sells fuel cells that generate onsite electricity for commercial, industrial, and data center customers. 

Nvidia (NVDA) shares fell 0.72% Tuesday. The company said it is holding talks with insurance companies about AI chip financing risk, according to the Financial Times. See Nvidia Record Buyback, Agent-Safety Push Reinforce AI Growth Story 

Technology Announcements:  

• Corning (GLW) shares jumped 4.7% after the company announced a multi-year agreement with AT&T (T) valued at more than $3 billion to supply fiber and cable for network expansion. AT&T shares fell 1.7%. 
• Alphabet (GOOGL) shares were down 0.53% after it announced it is a technology partner in America.gov. that will utilize Gemini. 
• Meta Platforms (META), whose shares rose 3.24%, announced Muse for Small Business, a version of its AI agent that connects to software such as Slack and Canva. See META Muse Strengthens AI Profit Path, Trust in Platform Raises Next Roadblock 

For this week’s economic and earnings calendar, see Week Ahead: Watch Jobs Data, GDP, and Micron Technology (MU) Earnings 

This material is intended for informational purposes only and should not be considered a personalized recommendation or investment advice. Investors should review investment strategies for their own particular situations before making any decisions.

Schwab Network is brought to you by Charles Schwab Media Productions Company (“CSMPC”). CSMPC is a subsidiary of The Charles Schwab Corporation and is not a financial advisor, registered investment advisor, broker-dealer, or futures commission merchant.

Charles Schwab Media Productions Company and all third parties mentioned are separate and unaffiliated, and are not responsible for one another's policies, services or opinions.

Data contained herein is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. All events and times listed are subject to change without notice.