Daily Wrap
Published after every US market close · Markets, news, rates and FX on one pageStocks Slide as 10-Year Yield Hits 5% Before Fed Decision
Market & SentimentRisk appetite cooled into the Fed, with the Russell 2000 down 0.96% and the Nasdaq 100 off 0.65%. Breadth was weak: 340 decliners against 149 advancers, only 35.2% of stocks above their 50-day average, and 29 new lows versus 15 highs. Traders price a 92% chance of a hike on Wednesday, per CNBC's survey.
Sectors & StocksEnergy led, up 2.26%, as tanker rates topped $1 million a day and Chevron and Exxon gained on supply fears; Valero and Marathon Petroleum rose over 3.6%. Consumer discretionary lagged at -1.7%, with Carvana down 5.6% and Amazon off 2.09%. Qualcomm jumped 4.25% on data-center leverage, while Seagate and Western Digital fell over 3.5%.
Rates, FX & CryptoThe 10-year yield rose 3bp to 5.00%, its highest since 2007, flattening the 2s10s spread to 33bp. The dollar firmed as oil climbed and hike odds hardened: USD/CNY edged up 0.05% to 6.7115, a slightly weaker yuan, while EUR/USD slipped 0.1%. CoinEx, a Hong Kong-based crypto exchange, said it will shut down.
Earnings & AnnouncementsMicrosoft raised its quarterly dividend 8% to $0.98. D.R. Horton added a $5 billion buyback authorization, and News Corp disclosed progress on its $1 billion repurchase. Otis CEO Judith Marks will retire in 2027. Exxon won approval for its Texas Rose carbon-capture project. FedEx and Lennar report Wednesday.
- Fed rate decision and Powell press conference
- FedEx and Lennar earnings
- 10-year yield reaction to Fed
- Oil and Hormuz shipping headlines
- Bonds slumped as the 10-year yield reached 5.00%, pressuring equity valuations and raising borrowing costs ahead of the Fed's rate decision.Reuters09-15 01:44 UTC
- Respondents expect two hikes over the next year, citing higher oil and broader inflation. The shift raises the risk of tighter policy than markets had assumed.CNBC09-15 11:10 UTC
- The Iran war has left too few ships willing to cross the Strait of Hormuz, driving benchmark tanker costs above $1 million daily and adding to global energy supply risk.Bloomberg09-15 02:36 UTC
- Shipping through the Strait of Hormuz is falling as attacks escalate, threatening oil flows and global trade routes and keeping energy markets on edge.Reuters09-15 02:59 UTC
- The US Treasury Secretary will meet his Chinese counterpart, a sign of continued economic dialogue amid trade tensions and a focus on currency and tariff issues.Reuters09-15 16:52 UTC
- Amazon's cloud unit cannot restore access to two Middle East data zones damaged by war, highlighting infrastructure risk for regional operations and enterprise customers.
- The Justice Department charged two Robinhood engineers over an alleged insider trading scheme involving crypto futures, a regulatory and reputational risk for the brokerage.
- Microsoft's board declared a quarterly dividend of $0.98 per share, up 8%, payable December 10, signaling continued cash generation and shareholder returns.
- CoinEx said it will close, adding to consolidation pressure in crypto trading venues and potentially affecting market liquidity and confidence.Reuters09-15 17:33 UTC
- New US sanctions on VTB Bank over alleged Iran links escalate geopolitical tensions and could complicate global banking and energy trade flows.Reuters09-14 21:12 UTC
Stories are selected and summarized by AI from the day's news coverage. Click a headline to read the original. Not investment advice.