NEW YORK (AP) — Wall Street pulled back from its records on Tuesday after the price of crude oil tumbled and technology stocks faltered.
The S&P 500 fell 0.8%, a day after setting an all-time high for the 46th time this year. The Dow Jones Industrial Average dropped 324 points, or 0.8%, and the Nasdaq composite sank 1%.
Exxon Mobil dropped 3%, and energy stocks fell to some of Wall Street’s sharpest losses after oil prices tumbled more than 4%. A barrel of Brent crude, the international standard, has fallen back below $75 from more than $80 last week.
Crude prices have been weakening as China’s flagging economic growth raises concerns about demand for oil. At the same time, worries have receded about Israel possibly attacking Iranian oil facilities as part of its retaliation against Iran’s missile attack early this month. Iran is a major producer of crude, and a strike could upend its exports to China and elsewhere.
Nvidia was the heaviest weight on the S&P 500 and fell 4.5%. It’s a cooldown for the chip company, whose stock is still up 166.2% for the year so far on euphoria about the profits created by the boom around artificial-intelligence technology.
Stocks for companies across the chip industry fell after Dutch supplier ASML reported its latest quarterly results. CEO Christophe Fouquet said AI continues to offer strong upside potential, but “other market segments are taking longer to recover,” and ASML’s stock trading in the United States fell 16.3%.
Also dragging on the U.S. stock market was UnitedHealth Group. The insurer dropped 8.1% despite reporting better results for the latest quarter than analysts expected. It lowered the top end of its forecasted range for profit over the full year.
Helping to keep the S&P 500 and Dow close to their records set on Monday were gains for several financial companies following better-than-expected profit reports for the summer.
Charles Schwab jumped 6.1%. More customers opened brokerage accounts at the company, helping to bring its total client assets to a record $9.92 trillion. Bank of America added 0.5%, and CEO Brian Moynihan said his company benefited from higher average loans and fees for investment banking and asset management.
Walgreens Boots Alliance was another winner, up 15.8%, after topping analysts’ forecasts. The drugstore chain also said it will close about 1,200 locations over the next three years as it tries to turn around its struggling U.S. business.
Chipmaker Wolfspeed jumped 21.3% to trim its loss for the year to 68.3% after the Biden-Harris administration announced plans to provide up to $750 million in direct funding to the company. The money will support its new silicon carbide factory in North Carolina that makes the wafers used in advanced computer chips.
In the bond market, trading of Treasurys resumed after a holiday on Monday, and yields sank following a weaker-than-expected report on manufacturing in New York state.
The yield on the 10-year Treasury fell to 4.03% from 4.10% late Friday. Manufacturing has been one of the areas of the U.S. economy hurt most by high interest rates caused by the Federal Reserve in its efforts to slow the economy enough to stamp out high inflation.
Now, though, the Fed has begun cutting interest rates as it’s widened its focus to include keeping the economy humming instead of just fighting high inflation. It looks set to continue cutting rates through next year, which would ease the brakes further off the economy.
Recent reports showing the U.S. economy remains stronger than expected have raised optimism that the Fed can pull off a perfect landing where it gets inflation down to 2% without causing a recession that many had thought would be necessary.
Because of expectations for continued growth for the U.S. economy, as well as the boost that lower rates can give to corporate profits and prices for stocks, strategists at UBS raised their forecast for how high the S&P 500 could go this year and next.
Led by Jonathan Golub, they’re calling for the S&P 500 to rise to 5,850 by the end of the year, up from their prior forecast of 5,600.
The S&P 500 finished Tuesday at 5,815.26 after falling 44.59 points. The Dow dropped 324.80 to 42,740.42, and the Nasdaq composite sank 187.10 to 18,315.59.
In stock markets abroad, Chinese stocks fell sharply as doubts continue about whether the government will offer enough fiscal stimulus to prop up the world’s second-largest economy.
Stocks in Shanghai fell 2.5%, and Hong Kong’s Hang Seng index dropped 3.7%.
Indexes were mixed elsewhere in Asia and in Europe.
AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
The Charging Bull statue in New York's Financial District is shown on Tuesday, Oct. 15, 2024. (AP Photo/Peter Morgan)
FILE - People pass the entrance for the Wall Street subway station on Sept. 2, 2024, in New York. (AP Photo/Peter Morgan, File)
FILE -A passerby moves past an electronic stock board showing Japan's Nikkei 225 index and stock prices outside a securities building Friday, Oct. 11, 2024 in Tokyo. (AP Photo/Shuji Kajiyama, File)
TEL AVIV, Israel (AP) — A rocket fired from Yemen hit an area of Tel Aviv overnight, leaving 16 people slightly injured by shattered glass, the Israeli military said Saturday, days after Israeli airstrikes hit Houthi rebels who have been launching missiles in solidarity with Palestinians.
A further 14 people sustained minor injuries as they rushed to shelters when air raid sirens sounded before the projectile hit just before 4 a.m. Saturday, the military said.
The Houthi rebels issued a statement on the Telegram messaging app saying they had aimed a hypersonic ballistic missile at a military target, which they did not identify.
The attack comes less than two days after a series of Israeli airstrikes on Yemen’s Houthi rebel-held capital, Sanaa, and port city of Hodeida killed at least nine people. The Israeli strikes were in response to a Houthi attack in which a long-range missile hit an Israeli school building. The Houthis also claimed a drone strike targeting an unspecified military target in central Israel on Thursday.
The Israeli military says the Iran-backed Houthis have launched more than 200 missiles and drones during the Israel-Hamas war in Gaza. The Houthis have also been attacking shipping in the Red Sea and Gulf of Aden and say they won’t stop until there is a ceasefire in Gaza.
The Israeli strikes Thursday caused “considerable damage” to the Houthi-controlled Red Sea ports “that will lead to the immediate and significant reduction in port capacity,” U.N. spokesman Stephane Dujarric said. The port at Hodeida has been key for food shipments into Yemen in its decade-long civil war.
U.N. Secretary-General Antonio Guterres said both sides’ attacks risk further escalation in the region and undermine U.N. mediation efforts.
In the Gaza Strip on Saturday, mourners held the funerals of 19 people — 12 of them children — killed in Israeli strikes on Friday and overnight.
One of the strikes hit a residential building in the built-up Nuseirat refugee camp in central Gaza, killing at least seven Palestinians, including five children and one woman, and injuring 16 others, health officials said.
In Gaza City, another strike on a house overnight killed 12 people, including seven children and two women, according to Al-Ahli Hospital where the bodies were taken.
Mourners gathered at the hospital in Gaza City Saturday morning. Women comforted each other as they wept over the bodies before they were carried away. One man, stony-faced, cradled a tiny shroud-wrapped body in his arms as he carried it along the funeral procession.
In Al-Aqsa Hospital of Deir al Balah, white body bags containing those killed in Nuseirat were taken from the morgue and loaded onto the back of an open truck to be taken for burial.
Overall, Gaza's Health Ministry said Saturday that 21 people had been killed and 61 were wounded over the past 24 hours.
Israel faces heavy international criticism over the unprecedented levels of civilian casualties in Gaza and questions about whether it has done enough to prevent them.
Israel says it only strikes militants, and blames the Hamas militant group for civilian deaths because its fighters operate in residential areas.
More than 45,200 people have been killed and more than 107,500 wounded in the Gaza Strip since October 2023, when a Hamas attack in Israel killed about 1,200 people and triggered the devastating 14-month war in Gaza. Local health officials do not distinguish between civilians and combatants, but have said more than half of the fatalities are women and children.
The Israeli military organization dealing with humanitarian affairs for Gaza said Saturday it had led a “tactical coordinated operation” delivering thousands of food packages, flour and water to the Beit Hanoun area in the north of the Gaza Strip.
The organization, known by its acronym COGAT, said trucks from the U.N. World Food Program transported 2,000 food packages, 1,680 sacks of flour and thousands of liters of water to distribution centers in the area on Friday.
Aid groups have said previously that military operations and armed gangs have hindered their ability to distribute aid to civilians in need.
Gaza's Health Ministry issued an urgent appeal Saturday for medical and food supplies to be delivered to Kamal Adwan Hospital in Beit Lahia, near Beit Hanoun in northern Gaza, while the hospital director described dire conditions.
The ministry said in a statement that there was continuous gunfire and Israeli shelling near the hospital. “Shells have struck the third floor and the hospital’s entrances, creating a state of panic,” the ministry said.
Hospital Director Dr. Husam Abu Safiyeh said the facility was “facing severe shortages."
“Despite promises, we have not received the necessary supplies to maintain electricity, water, and oxygen systems," Abu Safiyeh said. "Our requests for essential medical supplies and staff have largely gone unmet.”
He said the World Health Organization had delivered 70 units of blood, but that the hospital requires at least 200 units to meet urgent needs. He said 72 wounded people were being treated at the hospital.
The shortages extend beyond medical necessities. “Food is very scarce, and we cannot provide meals for the wounded. We are urgently calling on anyone who can provide supplies to help us,” he said. “The staff is working around the clock, yet we cannot even provide meals for them.”
Shurafa reported from Deir al Balah, Gaza Strip. Associated Press writers Elena Becatoros in Majdal Shams, Golan Heights, contributed to this report.
Follow AP’s war coverage at https://apnews.com/hub/israel-hamas-war
An Israeli soldier observes the site where the missile launched from Yemen landed Jaffa district, in Tel Aviv, Israel, Saturday, Dec. 21, 2024. (AP Photo/Tomer Appelbaum)
