(Bloomberg) — A rally in the world’s biggest technology companies lifted stocks, countering a selloff in Wall Street’s biggest banks. Brent oil fell below $70.
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Equities wiped out losses, with the S&P 500 up for a second straight day. Tesla Inc. climbed on a bullish analyst call. Oracle Corp. hit an all-time high amid solid results. JPMorgan Chase & Co. tumbled 6.5% as its President Daniel Pinto said analysts are being too optimistic in projecting next year’s expenses and net interest income. His remarks follow guidance from Goldman Sachs Group Inc.’s chief David Solomon Monday that his firm’s third-quarter trading revenue could fall 10%.
Treasuries rose after a solid $58 billion sale of three-year notes.
Traders also kept a close eye on news that regulators will make changes to their bank-capital rules proposal, cutting the expected impact to the biggest banks by half and exempting smaller ones from large portions of the measure. In the run-up to key inflation data, investors are also gearing up for the first debate between former President Donald Trump and Vice President Kamala Harris.
The S&P 500 rose 0.2%. The Nasdaq 100 added 0.8%. The Dow Jones Industrial Average slid 0.4%. A Bloomberg gauge of the “Magnificent Seven” megacaps climbed 1.3%. The Russell 2000 of small firms retreated 0.5%. The KBW Bank Index sank 2.2%.
Treasury 10-year yields dropped five basis points to 3.65%. The dollar wavered.
US equities are unlikely to slump 20% or more as the risk of a recession remains low against expected interest-rate cuts from the Federal Reserve, according to Goldman Sachs Group Inc. strategists.
The team led by Christian Mueller-Glissmann said while stocks could decline into the year end — hurt by higher valuations, a mixed growth outlook and policy uncertainty — the odds of an outright bear market are slim as the economy is also in part being supported by a “healthy private sector.”
In the run-up to the consumer price index, a 22V Research survey showed that 56% of respondents believe that core CPI is on a Fed-friendly…
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