U.S. equities drifted lower into midday Tuesday with the S&P 500 and Nasdaq 100 easing from near record highs set earlier in the session, as a fresh surge in crude oil prices and rising Treasury yields tempered the April rally.
• State Street Energy Select Sector SPDR ETF shares are advancing steadily. Why are XLE shares climbing?
Pakistan’s information minister said a formal response from Iran confirming whether it will send a delegation to the Islamabad peace talks was still awaited as of midday, leaving traders pricing an uneasy middle ground between a potential diplomatic breakthrough and a re-escalation in the Strait of Hormuz.
WTI crude oil climbed 2.7% to around $90 a barrel, while Brent rose 2.5% to $97.80.
The S&P 500 slipped 0.3% to 7,091, while the Dow Jones Industrial Average gave up 90 points, or 0.2%, to 49,352.
The CBOE Volatility Index climbed 5.4% to 19.89, reflecting a modest bid for hedges as the session’s risk appetite deteriorated.
The Nasdaq 100 outperformed, shedding just 0.1% to 26,567, as software and semiconductor strength offset weakness elsewhere.
Within Magnificent Seven stocks, Amazon.com Inc. (NASDAQ:AMZN) rose about 2% after pledging more than $20 billion in additional investment in AI start-up Anthropic, while Apple Inc. (NASDAQ:AAPL) slid more than 2% after announcing hardware chief John Ternus will succeed Tim Cook as CEO in December. Tesla Inc. (NASDAQ:TSLA) dropped about 1% heading into its earnings release on Wednesday, while NVIDIA Corp. (NASDAQ:NVDA) eased about 0.7%.
The Russell 2000 was the weakest corner of the market, dropping 0.5% to 2,780 as regional banks and transportation names dragged small caps broadly lower.
A second macro focal point emerged on Capitol Hill, where Fed Chair nominee Kevin Warsh opened his confirmation hearing with unusually pointed prepared remarks. Warsh told senators the central bank “needs new tools and new communications,” and called for “a regime change in the conduct of Fed policy” alongside a “new inflation framework.”
The 10-year Treasury yield advanced roughly four basis points to 4.29%, with the two-year yield rising about six basis points to 3.78% after U.S. retail sales jumped 1.7% in March — the biggest monthly gain since January 2023 — and ADP showed a sharp pickup in private payrolls, underscoring the resilience of the U.S. consumer.
Precious metals sold off sharply, with spot gold falling 1.7% to $4,738 an ounce, while silver fell 4% to $76 an ounce.
Tuesday’s Performance In Major U.S. Indices
| Index | Last | % Change |
|---|---|---|
| S&P 500 | 7,091.12 | -0.3% |
| Dow Jones | 49,352.23 | -0.2% |
| Nasdaq 100 | 26,567.29 | -0.1% |
| Russell 2000 | 2,779.59 | -0.5% |
According to the Benzinga Pro platform:
- The Vanguard S&P 500 ETF (NYSE:VOO) slipped 0.3%.
- The SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA) eased 0.2%.
- The Invesco QQQ Trust (NASDAQ:QQQ) dipped 0.1%.
- The iShares Russell 2000 ETF (NYSE:IWM) fell 0.5%.
Gold Miners Crater, Airlines Grounded As Oil Bids Return
Energy was the clear leader at the sector level, with the Energy Select Sector SPDR Fund (NYSE:XLE) rising 1.31% as the crude bid fed through to supermajors and services names.
At the other end, the Real Estate Select Sector SPDR Fund (NYSE:XLRE) dropped 1.4% as the back-up in yields hit rate-sensitive names, while the Industrials Select Sector SPDR Fund (NYSE:XLI) fell 1.2%, weighed down by transport and airline exposures.
At the industry level, the VanEck Oil Services ETF (NYSE:OIH) led the board with a 1.7% gain, followed by the iShares Expanded Tech-Software Sector ETF (BATS:IGV) up 1.4%.
The SPDR S&P Oil & Gas Exploration & Production ETF (NYSE:XOP) added 2.14%, while the VanEck Semiconductor ETF (NASDAQ:SMH) held a 0.4% gain.
The session’s sharpest damage was concentrated in gold miners. The VanEck Gold Miners ETF (NYSE:GDX) plunged 4.1%, a sharp underperformance versus bullion’s own 1.9% decline. The U.S. Global Jets ETF (NYSE:JETS) sank 2.2% as the spike in crude pressured airline margins, the Vanguard Real Estate ETF (NASDAQ:VNQ) dropped 1.3% on the yield back-up and the SPDR S&P Metals & Mining ETF (NYSE:XME) fell 1.3%.
On the regional banking side, the SPDR S&P Regional Banking ETF (NYSE:KRE) slipped 0.9%.
Earnings Aftermath: Good and Bad
Valmont Industries, Inc. (NYSE:VMI) led the Russell 1000 with a 12.60% surge to $461.52 after the infrastructure and agriculture products maker posted stronger-than-expected results and upbeat guidance.
Mueller Industries, Inc. (NYSE:MLI) added 8.53% to $131.22 after the copper products maker delivered first-quarter EPS of $2.16 — 45% above the $1.49 consensus — on revenue of $1.193 billion versus $1 billion a year earlier, and hiked its quarterly dividend to 35 cents from 25 cents.
UnitedHealth Group Inc. (NYSE:UNH) rallied over 8% after the insurer posted adjusted first-quarter EPS of $7.23 against a $6.59 consensus, with revenue of $111.7 billion ahead of the $109.44 billion estimate, and raised its 2026 adjusted EPS guidance.
On the downside, Tractor Supply Company (NASDAQ:TSCO) cratered 10.8% to $39.99 after missing first-quarter sales expectations.
GE Aerospace (NYSE:GE) also tumbled 6% amid disappointing guidance.
Tuesday’s Russell 1000 Top Gainers
| Name | % change |
|---|---|
| Valmont Industries, Inc. | +12.60% |
| Astera Labs, Inc. (NASDAQ:ALAB) | +8.80% |
| Mueller Industries, Inc. | +8.53% |
| UnitedHealth Group Inc. | +8.44% |
| Lucid Group, Inc. (NASDAQ:LCID) | +8.06% |
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