The S&P 500 Index ($SPX) (SPY) closed unchanged on Tuesday, the Dow Jones Industrial Average ($DOWI) (DIA) closed down by -0.36%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.82%. December E-mini S&P futures (ESZ26) fell -0.02%, and December E-mini Nasdaq futures (NQZ26) rose +0.79%.
Stock indexes settled mixed on Tuesday, with the S&P 500 falling from a 5-week high and the Nasdaq 100 reaching a new all-time high. Strength in chipmakers and AI stocks pushed the Nasdaq 100 to a record high, and weaker crude oil prices eased inflation risks and boosted market sentiment. WTI crude oil fell more than -1% on Tuesday to a 3-week low after Japan’s Kyodo News Agency reported that Iran has proposed to reopen the Strait of Hormuz within seven days if the US blockade is lifted.
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Stocks also have support on positive anticipation ahead of a summit later this week between Presidents Trump and Xi Jinping.
Stock indexes fell back from their best levels on Tuesday and settled mixed after bond yields rose on hawkish comments from Boston Fed President Susan Collins and Richmond Fed President Tom Barkin, who warned that inflation pressures could remain elevated and suggested they may favor additional Fed tightening. Also, the Sep Richmond Fed manufacturing survey fell more than expected to a 7-month low. Weakness in energy producers and financial stocks also weighed on the broader market.
The US Sep Richmond Fed manufacturing survey fell -6 to a 7-month low of -2, weaker than expectations of 2.
Hawkish Fed comments on Tuesday were negative for stocks and bonds. Boston Fed President Susan Collins said she saw an "increased likelihood" of scenarios in which inflation remains "notably above 2%." Also, Richmond Fed President Tom Barkin warned it could take time for inflationary shocks to wane, and there is a risk elevated pressures could become entrenched.
Oct WTI crude oil prices (CLV26) fell more than -1% on Tuesday to a 3-week low after Japan's Kyodo News Agency reported that Iran has proposed to reopen the Strait of Hormuz within seven days if the US blockade of Iranian ports is lifted. Crude prices added to their losses on signs that diplomacy may bring an end to Middle East hostilities after a spokesman for Iran's Islamic Revolutionary Guard said that "if our national interests require us to negotiate alongside the war, we must negotiate." In addition, President Trump said that US officials had a "very productive" meeting with Iranian representatives and that "they have another one scheduled in the very near future."
Markets are discounting a 53% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets settled higher on Tuesday. The Euro Stoxx 50 rose to a 1.5-week high and closed up +0.108%. China's Shanghai Composite climbed to a 2-week high and closed up +0.067%. Japan's Nikkei-225 Stock Average did not trade today with Japanese markets closed for a National holiday.
Interest Rates
December 10-year T-notes (ZNZ6) closed down by -1.5 ticks on Tuesday. The 10-year T-note yield rose +1.4 bp to 4.965%. T-notes gave up an early advance on Tuesday and moved lower on hawkish Fed comments, after Boston Fed President Susan Collins and Richmond Fed President Tom Barkin warned inflation may remain above the Fed’s 2% target, suggesting they may favor additional Fed tightening.
T-notes initially moved higher on Tuesday after WTI crude oil fell more than -1% to a 3-week low, easing inflation expectations. Also, today’s larger-than-expected decline in the Sep Richmond Fed manufacturing survey to a 7-month low supported T-notes. Tuesday’s $69 billion Treasury auction of 2-year T-notes had decent demand, a positive factor for T-notes, as the auction had a bid-to-cover ratio of 2.63, just above the 10-auction average of 2.62.
European government bond yields finished higher on Tuesday. The 10-year German bund yield rebounded from a 1.5-week low of 3.422% and finished up +0.5 bp to 3.463%. The 10-year UK gilt yield recovered from a 2-week low of 5.166% and finished up +2.7 bp to 5.238%.
The Eurozone Sep consumer confidence index fell -1.0 to -16.5, weaker than expectations of -16.0.
ECB Chief Economist Philip Lane said a new wave of high energy prices means Eurozone inflation will stay elevated longer than the ECB initially anticipated.
Markets are discounting a 48% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI stocks moved higher on Tuesday, supporting gains in the broader market. The iShares Semiconductor ETF (SOXX) rose to a 5-week high and closed up more than +1%. SanDisk (SNDK) closed up more than +7%, and Micron Technology (MU) and Seagate Technology Holdings Plc (STX) closed up more than +4%. Also, Western Digital (WDC) and ARM Holdings Plc (ARM) closed up more than +3%, and ASML Holding NV (ASML), Lam Research (LRCX), KLA Corp (KLAC), NXP Semiconductors NV (NXPI), and Qualcomm (QCOM) closed up more than +2%.
Financial stocks slid on Tuesday, limiting gains in the broader market. Charles Schwab (SCHW) closed down more than -6%, and Raymond James Financials (RJF), JPMorgan Chase (JPM), Wells Fargo & Co (WFC), Bank of America (BAC), and Northern Trust (NTRS) closed down more than -3%. Also, Morgan Stanley (MS), American Express (AXP), and Mastercard (MA) closed down more than -2%.
Energy stocks and service providers retreated on Tuesday after WTI crude oil fell more than -1% to a 3-week low. Valero Energy (VLO) closed down more than -4%, and APA Corp (APA) and Marathon Petroleum (MPC) closed down more than -3%. Also, Diamondback Energy (FANG) closed down more than -2%, and Phillips 66 (PSX), Occidental Petroleum (OXY), ConocoPhillips (COP), and Devon Energy (DVN) closed down more than -1%.
Viking Therapeutics (VKTX) closed up more than +36% after announcing results from a study showing patients taking its VK2735 GLP-1 weight-loss drug maintained up to 97% of weight loss versus 61% for placebo.
Vicor Corp (VICR) closed up more than +20% after raising its guidance on Q3 revenue growth to over 20% q/q from a previous estimate of 10%, citing royalties from a non-exclusive license to Vertical Power Delivery.
Shopify (SHOP) closed up more than +7% after announcing that it was “partnering deeply” with Meta Platforms’ Muse artificial intelligence agent.
Amgen (AMGN) closed up more than +4% to lead gainers in the Dow Jones industrials after saying the primary endpoint was met in a Phase 3 study evaluating its dazodalibep drug in adults with Sjogren’s disease, a chronic autoimmune condition.
AutoZone (AZO) closed up more than +3% after reporting Q4 EPS of $56.05, better than the consensus of $54.03.
Royal Caribbean Cruises Ltd (RCL) closed down more than -6% after the Financial Times reported the company is nearing a deal to acquire a majority stake in Sandals Resorts International.
Quest Diagnostics (DGX) closed down more than -3%, and Labcorp Holdings (LH) closed down more than -2% after the Centers for Medicare and Medicaid Services (CMS) released new preliminary medicare payment rates for lab services.
Earnings Reports (9/23/2026)
Cintas Corp (CTAS), Cracker Barrel Old Country Store (CBRL), General Mills Inc (GIS), HB Fuller Co (FUL), NioCorp Developments Ltd (NB), Paychex Inc (PAYX), Stitch Fix Inc (SFIX), ZenaTech Inc (ZENA).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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