Stock Market Falls After Hitting Record Highs. What Changed Overnight?

BeInCrypto2026/10/07 21:57

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Wall Street went from celebration to caution in less than 24 hours. On Tuesday, the SP 500 climbed 0.6% to a record close of 7,818.93. The Nasdaq also reached a new high as falling bond yields and another surge in AI stocks pushed investors back into equities. By Wednesday, that momentum had disappeared. Industrials were the weakest SP 500 sector. Homebuilders fell 2.9% and chip stocks lost 1.2%. Nvidia slipped around 0.7%, while SpaceX fell 2.5%. Caterpillar plunged nearly 6% after US regulators launched an inquiry into competition in the agricultural equipment market. Nvidia Stock Turns Red on Wednesday, September 7, After Hitting Record Highs. Source: Yahoo Finance Why Did US Stocks Fall? Treasury yields surged again The 30-year US Treasury yield reached a 24-year high, while the 10-year briefly moved above 5.3%. Higher bond yields give investors an increasingly attractive alternative to stocks. They also reduce what investors are willing to pay today for future corporate profits, putting particular pressure on expensive growth stocks. Oil returned above $100 Brent crude remained around $100 as Middle East supply concerns returned. Expensive energy can push inflation higher and make it harder for the Federal Reserve to lower interest rates. The Fed offered little relief Minutes from Septembers meeting showed officials remain concerned about inflation. Markets currently see only a small chance of another hike in October, but investors still expect rates to stay restrictive. Investors took profits after the record The market had avoided the correction many investors expected this summer. Wednesday gave traders an excuse to lock in gains after another record close. Will Wall Street Bounce Back? For now, major Wall Street firms are largely expecting a slowdown rather than a collapse. Goldman Sachs, JPMorgan and Morgan Stanley all have 8,000 year-end targets for the SP 500. Citi and UBS see 8,100. From Wednesdays 7,801 close, that implies only modest upside. BofA is more cautious at 7,400, while Wells Fargo sees 7,700. That leaves the market sitting close to where many banks think it should finish the year. The next move may depend heavily on whether Treasury yields and oil retreat and whether the coming earnings season can justify stocks trading near record levels. Read the article at BeInCrypto

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Updated to market close Firmus, backed by Nvidia, cancels $5 billion IPO plan; tech stocks see their biggest weekly gain in a week; Benchmark index posts gains for the second consecutive week Jasmeen Ara Islam Shaikh, Reuters, October 9 – Australian stocks rose on Friday as bargain hunters bought shares after a recent benchmark pullback; at the same time, Firmus’s decision to shelve its $5 billion IPO plan triggered an inflow of funds into local software stocks. The benchmark S&P/ASX 200 .AXJO rose 0.6% on Friday to close at 8,716.6 points after two consecutive days of declines. For the week, the index rose 0.4%, posting gains for a second straight week. Globally, comments from US President Trump that the US would pause strikes against Iran ahead of the November midterm elections provided a slight lift to market sentiment. Domestically in Australia, markets are closely watching September quarter inflation data to be released later this month, as well as awaiting the Reserve Bank of Australia’s last two policy meetings of the year in November and December. On the day, tech stocks .AXIJ jumped as much as 3.1% after data center operator Firmus, backed by Nvidia NVDA.O, called off its IPO due to lukewarm market response. Maas Group MGH.AX, a 3.2% shareholder in Firmus, resumed trading after a morning halt and saw its shares plunge as much as 10.7%. David Tuckwell, Chief Investment Officer at ETF Shares, said Firmus’s withdrawal was positive for local tech stocks as it kept fund managers’ money in existing listed shares and avoided forced rebalancing for index funds. He added that after extended selling, valuations in the sector were oversold and now operating on their own momentum. However, weak demand for Firmus indicated that investors preferred enterprises with solid performance, rather than shunning tech stocks entirely. WiseTech Global WTC.AX, Xero XRO.AX, and Life360 360.AX rose 4.2%, 3.5%, and 4.1% respectively. As gold prices edged up, gold miners .AXGD gained 1.9%, the sector's biggest gain in more than two weeks. GOL/ Weighed down by softer iron ore and copper prices, the overall mining index dipped 0.2%. IRONORE/ MET/L Financial stocks .AXFJ rebounded 0.5% after declines over the previous two sessions. Energy stocks .AXEJ edged higher by 0.2%, marking four straight gains despite weaker early oil prices. O/R Across the Tasman Sea, New Zealand’s S&P/NZX 50 index .NZ50 closed up 0.4% at 13,749.35 points. (For the convenience of non-English speakers, Reuters automatically translates its reports into several languages. Due to possible errors or omitted context in automated translations, Reuters does not guarantee the accuracy of such texts and provides them solely for reader convenience. Reuters accepts no liability for any damages or losses resulting from the use of automated translation features.) For more on "Schedules & Data": US earnings calendar RESF/US, Wall Street outlook for the week .N/O, Global economic outlook DATA/ ... See all the latest market headlines and breaking news at NEWS1.

路透社•2026/10/09 05:56