The stock market sputtered today, folks, with major indexes closing in the red as simmering tensions in the Middle East boiled over, sending oil prices soaring and investors scrambling for cover. The Dow Jones Industrial Average dropped nearly 200 points, or 0.44%, while the S&P 500 and Nasdaq Composite slipped 0.17% and 0.04%, respectively.
This market pullback came despite a further easing in expectations for another aggressive rate cut by the Federal Reserve. Traders now see a 65% chance of a more modest quarter-point cut at next month’s meeting, down sharply from the 50-basis-point cut hopes from just a week ago. Clearly, something else is spooking the markets…
Black Gold and Black Swans in the Desert
The real story today is the escalating conflict between Israel and Iran, and the very real threat of a wider regional war. President Biden’s comments today, while vague, certainly didn’t quell fears of retaliatory strikes after Iran’s missile attack on Israel earlier this week.
This uncertainty sent shockwaves through the energy market, with U.S. crude oil jumping 5.5% to $73.98 a barrel – a stark reminder that when geopolitical chaos reigns, oil prices are quick to follow. Some analysts are even predicting a potential surge to over $200 a barrel if the conflict escalates and disrupts Iran’s oil infrastructure – a chilling prospect for an already fragile global economy.
Chart Climbers and Cratered Companies
While broad market sentiment soured, a handful of companies bucked the trend:
- Stardust Power (SDST) soared by nearly 2%, with rumors swirling about this little-known energy player’s potential to capitalize on the global energy crunch.
- FreightCar America (RAIL) chugged ahead with a nearly 10% gain after posting strong earnings, proving that old-economy stalwarts can still deliver in a tech-obsessed market.
- Petco Health and Wellness (WOOF) jumped over 10% – because even in uncertain times, people still love to pamper their pets.
On the flip side, several companies felt the heat:
- EVgo (EVGO) skidded nearly 1% as investors hit the brakes on the electric vehicle charging company after a recent run-up.
- United Natural Foods (UNFI) dropped almost 10%, a reminder that even the grocery business isn’t immune to wider economic concerns.
- Hims & Hers Health (HIMS) shed nearly 10% as investors questioned the telehealth darling’s long-term growth prospects in a post-pandemic world.
Here are the top movers today:
| Stock | Close | Change |
|---|---|---|
| EVGO | 6.26 | -0.87% |
| UP Fintech (TIGR) | 9.35 | 1.74% |
| iHeartMedia (IHRT) | 2.08 | 0.48% |
| W&T Offshore (WTI) | 2.69 | -0.37% |
| Clover Health (CLOV) | 3.96 | -1.00% |
| (Top 5 Gainers) | ||
| Stardust Power (SDST) | 8.10 | 1.89% |
| FreightCar America (RAIL) | 12.00 | -0.33% |
| Petco (WOOF) | 5.57 | 0.54% |
| agilon health (AGL) | 3.16 | -0.33% |
| Youdao (DAO) | 5.13 | -0.33% |
What to Watch Friday
- Jobs, Jobs, Jobs: The September nonfarm payrolls report drops before the opening bell, and it could be a real market mover. Will the numbers be strong enough to support the Fed’s “soft landing” narrative, or are cracks in the labor market starting to show?
- Oil’s Wild Ride: With the Middle East on edge, keep a close eye on crude oil prices. Volatility is practically guaranteed, and any escalation in the conflict could send shockwaves through the energy sector – and the broader market.
- Gold’s Glitter: When fear stalks the market, investors often seek refuge in safe-haven assets like gold. Will we see a continued flight to safety, pushing gold prices higher?
We’ll be tracking these crucial developments and more in tomorrow’s Market Monitors Daily Wrapup. Stay informed, stay vigilant, and as always….stay invested!
Mr. Monitor