Long-term bond yields reached a 16-year peak, adversely affecting stocks already under pressure from the Gaza conflict and corporate earnings outcomes. The 10-year U.S. Treasury yield closed slightly above 4.9%, marking its highest since July 2007, making stocks less appealing and increasing borrowing costs. The escalation in Gaza heightened fears of a broader regional conflict, with Arab leaders cancelling a summit with President Biden, lowering chances of a quick diplomatic resolution. Morgan Stanley's stock dropped due to a decline in quarterly net income, while Procter & Gamble's shares rose following a reported quarterly profit increase aided by price hikes. The S&P 500, Nasdaq Composite, and Dow industrials all ended lower on Wednesday. Moreover, semiconductor stocks fell for a second day post U.S. announcement on chip export restrictions, and airline stocks retracted with United Airlines reducing its year-end earnings forecast. Lastly, despite China's slowed economic growth last quarter, better-than-expected retail sales were noted in September, and Netflix shares increased post-market on strong Q3 customer growth, while Tesla stock fluctuated following a sharp profit drop in its earnings report.
Here are the stocks moving the most on Wednesday:
United Airlines stock dipped 9.7% due to concerns about higher fuel prices and disrupted Tel Aviv flights affecting its profits. Nvidia saw a 4% slump following U.S. plans to restrict AI chip exports to China, with Citi also reducing its price target on the stock. Morgan Stanley's stock decreased nearly 7% after its wealth management division reported lower than expected revenue. J.B. Hunt Transport Services saw an 8.9% drop after its Q3 results missed Wall Street forecasts. Despite better-than-expected quarterly results, Interactive Brokers' shares declined roughly 4%. Procter & Gamble and Abbott Laboratories both saw stock rises of 2.6% and 3.7% respectively, post favorable earnings reports. Citizens Financial Group's shares dropped 5.6% due to disappointing Q3 results. State Street shares rose 2% on better-than-expected Q3 earnings. Winnebago Industries' shares dipped over 3% following revenue shortfalls in its fiscal fourth-quarter report. U.S. Bancorp stock dipped more than 4% despite slightly beating Q3 expectations. Lastly, Albemarle shares sank 9.8% following a downgrade from Bank of America due to concerns about the lithium market outlook.
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