Market Wrap
Published
The S&P 500 fell 0.7% as long-term Treasury yields surged to their highest levels since 2007, with the 10-year note reaching 5.081% and the 30-year touching 5.367%, pressuring rate-sensitive equities even as an Iran-linked oil spike gave energy shares a lift.
The yield move followed a stronger-than-expected September composite PMI reading of 58.4, up from 56, alongside hawkish Fed commentary. Vice Chair Barr said inflation is not clearly trending toward 2% and further rate hikes are likely needed, while Governor Goolsbee warned that large supply shocks can leave a lasting inflation imprint. On Iran, Tehran's security chief Rezaei said the country has given the US four to five days to lift its naval blockade, release frozen assets and end hostilities before Strait of Hormuz talks can resume, and Secretary of State Rubio confirmed Iran fired on commercial vessels, adding that military options remain on the table. The White House also floated and then denied a 90-day diesel export ban, a headline that briefly sent US diesel futures down more than 7% before recovering; crude still settled up, with WTI near $92.16 a barrel.
Energy was the only sector to close higher, tracking the crude gain, while Utilities, Real Estate and Consumer Discretionary led the downside as higher yields hit rate-sensitive names and travel-exposed stocks. Homebuilders, airlines and cruise lines were among the weakest groups. Technology and Health Care also declined, though enterprise software and security names outperformed within the group.
Company News
- Voyager Technologies extended a multi-day slide, falling sharply again after Tuesday's after-hours and premarket declines.
- Paychex dropped after missing revenue expectations, even after raising its fiscal 2027 guidance for PEO and Insurance Solutions growth.
- McDonald's fell after unveiling new long-term targets, including operating margin expansion to the low-to-mid 50% range by 2030 and roughly 4.5% net new unit growth in 2027.
- KB Home beat on earnings but flagged weakening housing demand tied to higher mortgage rates, cutting its outlook.
- Cintas raised its full-year revenue and EPS guidance after a better-than-expected quarter.
- General Mills reaffirmed its fiscal 2027 outlook, citing improved product innovation and cost savings.
- Royal Caribbean agreed to acquire a 50% stake in Sandals and Beaches Resorts for about $3.0 billion.
- Blackstone flagged more than $350 million in preliminary quarter-to-date realization revenue.
- CoreWeave and Halozyme Therapeutics each closed large convertible note offerings, and Aurora Innovation laid out a 2030 target of more than 30,000 driverless trucks in operation.