Stock Market Update Tuesday October 8, 2024

Stock Market Update Tuesday October 8, 2024 Stocks resumed their ascent after yesterday’s downward detour, with the S&P 500 advancing 1% to approach new record highs. West Texas Intermediate WTI crude oil futures plunged almost 5% on Tuesday as markets reacted to geopolitical tensions in the Middle East. CNBC reports that the drop occurred as traders assessed Israel’s potential response to Iranian missile attacks and U.S. diplomatic efforts. This decline significantly impacted energy stocks, with the S&P 500 Energy Sector falling more than 2%, and major companies like Marathon Petroleum $MPC and Valero Energy $VLO experiencing losses of 5% or more.

The technology sector led the rally today. The Technology Select Sector SPDR Fund XLK was up roughly 2%, driven by gains in companies like Palantir Technologies $PLTR, Palo Alto Networks $PANW, Intel Corporation $INTC, NVIDIA Corporation $NVDA, and Broadcom Inc. $AVGO. Shares of Robinhood Markets, Inc. $HOOD surged nearly 10% after announcing its first investor day scheduled for December, as well as receiving positive analyst commentary from Piper Sandler $PIPR and Barclays $BCS.

Away From Stocks: U.S. Treasury securities stabilized after their recent selloff, exhibiting minimal changes. The yield on the two-year Treasury note dipped one basis point to 3.98%, while the 30-year long bond yield settled at 4.32%, up slightly from 4.30% on Monday. West Texas Intermediate WTI crude oil pulled back below $74 per barrel, reflecting market reactions to geopolitical tensions in the Middle East. Gold prices retreated to $2,620 per ounce, indicating a decrease in safe-haven demand. Bitcoin traded sideways at approximately $63,100, suggesting consolidation in the cryptocurrency market. The CBOE Volatility Index VIX settled just above 21 after testing 23 yesterday, signaling a modest reduction in market volatility.