MARKET WRAP

Stocks fell today as the yield on the U.S. 10-year jumped above 4% for the first time in two months and oil spiked.

The S&P was down 0.96%, the Nasdaq fell 1.18% and the Russell 2000 was down 1.05%.

Energy was the only sector to close in the green. Utilities was the worst-performing group, down more than 2%.

All of the Mag 7 stocks closed lower with the exception of Nvidia, up 2%.

Amazon and Apple were hit with analyst downgrades, sending shares lower by 3% and 2.25% respectively.

MRKT MATRIX: October 7, 2024

Today’s Top Stories:

• Dow tumbles 400 points as 10-year yield tops 4%, oil jumps (CNBC)

• U.S. crude oil jumps more than 3%, closes above $77 as market waits for Israel strike against Iran (Bloomberg)

• Activist Starboard Value Takes $1 Billion Stake in Pfizer (WSJ)

• Super Micro shares soar after server company says it’s shipping over 100,000 AI GPUs per quarter (CNBC)

• Google’s Grip on Search Slips as TikTok and AI Startup Mount Challenge (WSJ)

• Microsoft’s AI Story Is Getting Complicated (WSJ)

• Meta Unveils AI Video Generator, Taking On OpenAI and Google (Bloomberg)

• AWS CEO Matt Garman on generative AI, open source, and closing services (TechCrunch)

• Foxconn beats estimates with record third-quarter revenue on AI demand (Reuters)

Today’s On The Tape is Presented by CME Group, iConnections and SoFi

Buzzing The Tower

Dan Nathan, Guy Adami, and Liz Young Thomas dive into recent market discussions, beginning with mixed reactions to the latest jobs report and its implications for economic strength and inflation. The conversation covers the potential influence of an AI event and corporate earnings on the market, addressing downgrades in major tech stocks such as Amazon and Apple. The team explores bond market movements, the potential impacts of rising oil prices, and the risks of inflation reigniting. They highlight the strong performance of banks and other sectors, questioning the sustainability of the current rally amid a lack of insider buying. Additionally, the discussion touches on geopolitical factors affecting commodities and energy, and the upcoming CPI report's significance. Closing with insights on potential earnings season expectations and broader economic narratives, the episode provides a comprehensive understanding of current market conditions.

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