US stocks fell into the red on Friday morning as investors continued to calibrate to the Federal Reserve's first rate hike in three years and existential fears about artificial intelligence's capabilities.
The tech-heavy Nasdaq Composite (^IXIC) edged 0.1% lower, while the S&P 500 (^GSPC) fell 0.2%. The Dow Jones Industrial Average (^DJI) was down 0.3%.
Markets appeared to look past the Fed's 25 basis point rate hike this week, which was widely expected. US stock continued to climb after the Bank of Japan raised interest rates to the highest level in 31 years.
However, analysts and top CEOs aren't convinced that one rate hike (by the Fed) will be enough to bring down stubbornly high inflation. "It's not clear to me we've slayed inflation," JPMorgan Chase CEO Jamie Dimon told Yahoo Finance this week.
Oil prices, which have eased below the $100 level, offered some relief as the war in Iran nears its seventh month, though crude oil edged higher in early trading on Friday. The energy shock stemming from disruptions in the Strait of Hormuz continues to baffle analysts and drive inflation higher, complicating the picture for global central banks.
Chip stocks, meanwhile, have on the whole snapped back from a sell-off earlier this week, fueled by Anthropic (ANTH.PVT) and OpenAI's (OPAI.PVT) call for an AI development slowdown. The PHLX Semiconductor index (^SOX) was down only slightly on the week.
21 mins ago Grace O'Donnell Despite Friday's slide, cybersecurity stocks are on track to post strong gains this week Yahoo Finance's Brian Sozzi reports: A worrisome week for humanity is a cash-in week for cybersecurity investors.Shares of top cybersecurity names such as Okta (OKTA), CrowdStrike (CRWD), and Palo Alto Networks (PANW) have ripped this week amid fresh AI warnings from the biggest names in the space in recent days.Despite some selling on Friday, CrowdStrike has led the way with a 14% gain since Monday, followed by Sailpoint (SAIL) with a 13% advance, per Yahoo Finance AlphaSpace data. Palo Alto Networks is up 8%, while Okta has tacked on 10%. The First Trust Nasdaq Cybersecurity ETF (CIBR) is up 5%.The advances likely reflect these companies seeing an even faster pace of growth as companies double down on protecting their infrastructure. Read more.
Despite Friday's slide, cybersecurity stocks are on track to post strong gains this week
A worrisome week for humanity is a cash-in week for cybersecurity investors.
Shares of top cybersecurity names such as Okta (OKTA), CrowdStrike (CRWD), and Palo Alto Networks (PANW) have ripped this week amid fresh AI warnings from the biggest names in the space in recent days.
Despite some selling on Friday, CrowdStrike has led the way with a 14% gain since Monday, followed by Sailpoint (SAIL) with a 13% advance, per Yahoo Finance AlphaSpace data. Palo Alto Networks is up 8%, while Okta has tacked on 10%.
The First Trust Nasdaq Cybersecurity ETF (CIBR) is up 5%.
The advances likely reflect these companies seeing an even faster pace of growth as companies double down on protecting their infrastructure.
Today at 1:40 PM UTC David Hollerith Stocks open mixed as oil, yields turn green Stocks opened little changed on Friday as US Treasury yields rose and prices for oil futures eased. Investors are still weighing what to make of the Fed's first rate hike in three years, along with mounting fears orbiting the AI industry. The tech-heavy Nasdaq Composite (^IXIC) rose 0.3%, while the S&P 500 (^GSPC) was flat. The Dow Jones Industrial Average (^DJI) was down 0.3%. Chip stocks rose, snapping back from an earlier sell-off, fueled by Anthropic (ANTH.PVT) and OpenAI's (OPAI.PVT) call for a slowdown in AI development. The PHLX Semiconductor index (^SOX) remains down 1% on the week heading into the final trading session. Futures on both international benchmark Brent crude (BZ=F) and US benchmark WTI (CL=F) hovered around $100 per barrel after easing overnight. At the same time, the benchmark 10-year Treasury yield (^TNX) rose on Friday. It remains just below 5%, adding another headwind for stocks.
Stocks open mixed as oil, yields turn green
Stocks opened little changed on Friday as US Treasury yields rose and prices for oil futures eased. Investors are still weighing what to make of the Fed's first rate hike in three years, along with mounting fears orbiting the AI industry.
The tech-heavy Nasdaq Composite (^IXIC) rose 0.3%, while the S&P 500 (^GSPC) was flat. The Dow Jones Industrial Average (^DJI) was down 0.3%.
Chip stocks rose, snapping back from an earlier sell-off, fueled by Anthropic (ANTH.PVT) and OpenAI's (OPAI.PVT) call for a slowdown in AI development. The PHLX Semiconductor index (^SOX) remains down 1% on the week heading into the final trading session.
Futures on both international benchmark Brent crude (BZ=F) and US benchmark WTI (CL=F) hovered around $100 per barrel after easing overnight.
At the same time, the benchmark 10-year Treasury yield (^TNX) rose on Friday. It remains just below 5%, adding another headwind for stocks.
Today at 1:24 PM UTC Grace O'Donnell Netflix stock sinks, on track for worst year since 2022 Netflix (NFLX) stock is dragging in premarket trading. Shares of the streamer are off by 4% ahead of the opening bell after the stock was hit by a downgrade. Wells Fargo cut its rating on Netflix to Underweight and gave the stock a $57 price target, citing a weaker content slate and viewer engagement. Year to date, Netflix stock is off by 20% and is headed for its worst year since 2022, when the stock lost 51%, per Slickcharts.
Netflix stock sinks, on track for worst year since 2022
Netflix (NFLX) stock is dragging in premarket trading. Shares of the streamer are off by 4% ahead of the opening bell after the stock was hit by a downgrade.
Wells Fargo cut its rating on Netflix to Underweight and gave the stock a $57 price target, citing a weaker content slate and viewer engagement.
Year to date, Netflix stock is off by 20% and is headed for its worst year since 2022, when the stock lost 51%, per Slickcharts.
Today at 12:06 PM UTC Grace O'Donnell Warren Buffett steps down as Berkshire Hathaway chair: 'Father Time always wins' Warren Buffett, 96, will step down as chairman of Berkshire Hathaway's board, effective immediately, Berkshire said Friday. "Father Time always wins," Warren Buffett wrote in a letter to shareholders. "He has, however, been generous with me. He has given me the opportunity to see Berkshire reach a point where I am more confident than ever about what lies ahead. The company is in excellent hands, and I look forward to remaining a shareholder alongside you." Buffett has been named chairman emeritus, and his son, Howard G. Buffett, will take over as board chair, as planned. In this May 7, 2018, file photo, Berkshire Hathaway Chairman and CEO Warren Buffett smiles during an interview in Omaha, Neb.. (AP Photo/Nati Harnik, File) · ASSOCIATED PRESS Yahoo Finance's Brian Sozzi reports: Board life will now look much different for Howard, who has a striking resemblance to his legendary investor dad.And Howard Buffett knows the transition will change his life, which has long consisted of frequent world travel for philanthropic ventures alongside a daily routine of being a farmer who tills his own land."I've been to 155 countries or something. And I'm on the road a lot. I've been in Ukraine five times in 2022. And the same thing, five times in 2023 and probably four or five times this year. So those are trips I won't make," Buffett told Yahoo Finance in a 2024 interview.Buffett, 71, is seen as the "guardian" of the unique Berkshire culture that his father and longtime lieutenant Charlie Munger created over the decades. The business itself is a beast, requiring expert planning and oversight by the Berkshire board. Read more.
Warren Buffett steps down as Berkshire Hathaway chair: 'Father Time always wins'
Warren Buffett, 96, will step down as chairman of Berkshire Hathaway's board, effective immediately, Berkshire said Friday.
"Father Time always wins," Warren Buffett wrote in a letter to shareholders. "He has, however, been generous with me. He has given me the opportunity to see Berkshire reach a point where I am more confident than ever about what lies ahead. The company is in excellent hands, and I look forward to remaining a shareholder alongside you."
Buffett has been named chairman emeritus, and his son, Howard G. Buffett, will take over as board chair, as planned.
Board life will now look much different for Howard, who has a striking resemblance to his legendary investor dad.
And Howard Buffett knows the transition will change his life, which has long consisted of frequent world travel for philanthropic ventures alongside a daily routine of being a farmer who tills his own land.
"I've been to 155 countries or something. And I'm on the road a lot. I've been in Ukraine five times in 2022. And the same thing, five times in 2023 and probably four or five times this year. So those are trips I won't make," Buffett told Yahoo Finance in a 2024 interview.
Buffett, 71, is seen as the "guardian" of the unique Berkshire culture that his father and longtime lieutenant Charlie Munger created over the decades. The business itself is a beast, requiring expert planning and oversight by the Berkshire board.
Today at 11:00 AM UTC Grace O'Donnell Traders eye Xi-Trump meet for clues on AI rivalry, yuan outlook Bloomberg reports: Artificial intelligence, a lingering trade war and the yuan will likely dominate the agenda of the upcoming US-China summit, with focus on whether the two nations can reach concessions or put guardrails around key areas of competition, analysts say.For now, markets are sending mixed signals about the outcome of next week's meeting between US President Donald Trump and his Chinese counterpart Xi Jinping.Indicating cautious optimism, a Goldman Sachs Group Inc. survey shows 46% of offshore and 38% of onshore investors expect Chinese stocks to rise after the talks. Only a small minority foresees losses. Meanwhile, overseas exchange-traded fund flows and options positioning suggest foreign investors remain wary ahead of the summit, according to Tony Lee, JPMorgan Chase & Co.'s equity-derivatives strategist. Read more.
Traders eye Xi-Trump meet for clues on AI rivalry, yuan outlook
Artificial intelligence, a lingering trade war and the yuan will likely dominate the agenda of the upcoming US-China summit, with focus on whether the two nations can reach concessions or put guardrails around key areas of competition, analysts say.
For now, markets are sending mixed signals about the outcome of next week's meeting between US President Donald Trump and his Chinese counterpart Xi Jinping.
Indicating cautious optimism, a Goldman Sachs Group Inc. survey shows 46% of offshore and 38% of onshore investors expect Chinese stocks to rise after the talks. Only a small minority foresees losses. Meanwhile, overseas exchange-traded fund flows and options positioning suggest foreign investors remain wary ahead of the summit, according to Tony Lee, JPMorgan Chase & Co.'s equity-derivatives strategist.
Today at 10:00 AM UTC Grace O'Donnell Oil prices fall for third day on hopes of limited Saudi supply disruptions Reuters reports: Oil prices fell for a third day on Friday as easing concerns over Saudi supply disruptions outweighed anxiety about a widening the Middle East conflict amid fresh fighting between Saudi Arabia and Yemen's Houthis.Markets largely shrugged off concerns about new threats to supplies even as Saudi Arabia and Yemen's Iran-backed Houthis exchanged fresh strikes across their border on Thursday, expanding the Middle East war front.Earlier this week, prices climbed to close to four-month highs as sources said crude loadings at Saudi Arabia's Red Sea export hub of Yanbu had been suspended and Riyadh cancelled some deliveries to Europe after its East-West pipeline was damaged in an attack last week.However, prices have cooled off on reports Saudi Arabia was seeking to return about half the capacity of its East-West oil pipeline within days and the nation was offering more crude cargoes to Asian refiners through ship-to-ship transfers off Oman's port of Sohar."Recent efforts to restore Saudi export capacity have reduced some of the immediate supply anxiety," said Priyanka Sachdeva, head of market insights at Phillip Nova. Read more.
Oil prices fall for third day on hopes of limited Saudi supply disruptions
Oil prices fell for a third day on Friday as easing concerns over Saudi supply disruptions outweighed anxiety about a widening the Middle East conflict amid fresh fighting between Saudi Arabia and Yemen's Houthis.
Markets largely shrugged off concerns about new threats to supplies even as Saudi Arabia and Yemen's Iran-backed Houthis exchanged fresh strikes across their border on Thursday, expanding the Middle East war front.
Earlier this week, prices climbed to close to four-month highs as sources said crude loadings at Saudi Arabia's Red Sea export hub of Yanbu had been suspended and Riyadh cancelled some deliveries to Europe after its East-West pipeline was damaged in an attack last week.
However, prices have cooled off on reports Saudi Arabia was seeking to return about half the capacity of its East-West oil pipeline within days and the nation was offering more crude cargoes to Asian refiners through ship-to-ship transfers off Oman's port of Sohar.
"Recent efforts to restore Saudi export capacity have reduced some of the immediate supply anxiety," said Priyanka Sachdeva, head of market insights at Phillip Nova.
Today at 9:00 AM UTC Grace O'Donnell Good morning. Here's what's happening today. Economic data: Industrial production, month-on-month, August (+0.3% expected, +0.2% previously); Manufacturing production, month-on-month, August (+0.3% expected, +0.2% previously); Capacity utilization, August (76.4% expected, 76.3% previously) Earnings calendar: No notable earnings. Catch up on some top stories from overnight: OpenAI staff knew the 'existential threat' AI posed to publishers: NYT Traders eye Xi-Trump meet for clues on AI rivalry, yuan outlook Chinese yuan hits strongest level since 2022 after PBOC fixing Coinbase CEO Brian Armstrong on the failed crypto bill: 'I would just at this point assume it's dead' Trump backs Fed's Warsh following rate hike
Good morning. Here's what's happening today.
Economic data: Industrial production, month-on-month, August (+0.3% expected, +0.2% previously); Manufacturing production, month-on-month, August (+0.3% expected, +0.2% previously); Capacity utilization, August (76.4% expected, 76.3% previously)
Catch up on some top stories from overnight:
OpenAI staff knew the 'existential threat' AI posed to publishers: NYT
Traders eye Xi-Trump meet for clues on AI rivalry, yuan outlook
Chinese yuan hits strongest level since 2022 after PBOC fixing
Coinbase CEO Brian Armstrong on the failed crypto bill: 'I would just at this point assume it's dead'
Trump backs Fed's Warsh following rate hike
Today at 8:00 AM UTC Grace O'Donnell Bank of Japan raises interest rates to 31-year high The Bank of Japan raised its interest rate by 25 basis points on Friday to 1.25%, bringing its benchmark rate to its highest level in 31 years. The central bank has raised rates at its fastest pace since 1990 amid inflation concerns, rising energy prices, and a weak yen. Japan's Nikkei (^N225) index rose over 1% following the decision. "Given that underlying CPI inflation has been approaching two percent and financial conditions have been accommodative, the bank will continue to raise the policy interest rate," the BoJ said, per AFP. The Bank of Japan's rate hike comes after the Federal Reserve moved to raise rates on Thursday, the European Central Bank raised three of its rates, while the Bank of England opted to hold rates steady. "With that [a BoJ rate hike], conditions are coalescing for another unwind of the globally important carry trade that facilitates capital flows from east to west," RSM chief economist Joe Brusuelas wrote on Sept. 12. "Such an unwinding could prompt a further repricing of risk assets in the U.S. and elsewhere." Read more.
Bank of Japan raises interest rates to 31-year high
The Bank of Japan raised its interest rate by 25 basis points on Friday to 1.25%, bringing its benchmark rate to its highest level in 31 years.
The central bank has raised rates at its fastest pace since 1990 amid inflation concerns, rising energy prices, and a weak yen. Japan's Nikkei (^N225) index rose over 1% following the decision.
"Given that underlying CPI inflation has been approaching two percent and financial conditions have been accommodative, the bank will continue to raise the policy interest rate," the BoJ said, per AFP.
The Bank of Japan's rate hike comes after the Federal Reserve moved to raise rates on Thursday, the European Central Bank raised three of its rates, while the Bank of England opted to hold rates steady.
"With that [a BoJ rate hike], conditions are coalescing for another unwind of the globally important carry trade that facilitates capital flows from east to west," RSM chief economist Joe Brusuelas wrote on Sept. 12. "Such an unwinding could prompt a further repricing of risk assets in the U.S. and elsewhere."
Stock market today: S&P 500, Nasdaq snap 2-week win streak as AI jitters pressure tech Yahoo Finance • 2mo ago YM=F ES=F
Stock market today: S&P 500, Nasdaq snap 2-week win streak as AI jitters pressure tech
Stock market today: Dow, S&P 500, Nasdaq slip but cap winning month for stocks Yahoo Finance • 17d ago ^IXIC ^GSPC
Stock market today: Dow, S&P 500, Nasdaq slip but cap winning month for stocks
Stock market today: Dow plunges by 1,100 points, S&P 500 and Nasdaq sink as yields rise on Fed's hawkish hold Yahoo Finance • 1mo ago ^GSPC ^DJI
Stock market today: Dow plunges by 1,100 points, S&P 500 and Nasdaq sink as yields rise on Fed's hawkish hold
Stock market today: Dow, S&P 500, Nasdaq fall as chip stocks tumble, oil surges on US-Iran tensions Yahoo Finance • 2mo ago ^DJI CL=F
Stock market today: Dow, S&P 500, Nasdaq fall as chip stocks tumble, oil surges on US-Iran tensions
Stock market today: Dow, S&P 500, Nasdaq slip amid US-Iran impasse, Alphabet stock sinks Yahoo Finance • 1mo ago ^IXIC ^GSPC
Stock market today: Dow, S&P 500, Nasdaq slip amid US-Iran impasse, Alphabet stock sinks
Stock market today: Dow, S&P 500, Nasdaq slip as chip stocks fall on AI warning Yahoo Finance • 3d ago ^DJI ^GSPC
Stock market today: Dow, S&P 500, Nasdaq slip as chip stocks fall on AI warning
Stock market today: Dow, S&P 500, Nasdaq rise as Fed rate-hike bets ease, chip stocks rally Yahoo Finance • 2mo ago ^DJI IBM
Stock market today: Dow, S&P 500, Nasdaq rise as Fed rate-hike bets ease, chip stocks rally
Stock market today: Dow, S&P 500, Nasdaq slide to cap 3rd week of losses as $100 oil sparks inflation fears Yahoo Finance • 6mo ago ^DJI CL=F
Stock market today: Dow, S&P 500, Nasdaq slide to cap 3rd week of losses as $100 oil sparks inflation fears
Stock market today: Dow, S&P 500, Nasdaq rally fizzles as chip stock momentum fades, oil rises Yahoo Finance • 1mo ago ^DJI ^GSPC
Stock market today: Dow, S&P 500, Nasdaq rally fizzles as chip stock momentum fades, oil rises
Stock market today: Dow rises, S&P 500, Nasdaq fall as tech rotation trade resumes, US-Iran tensions flare Yahoo Finance • 3mo ago ^DJI ^GSPC
Stock market today: Dow rises, S&P 500, Nasdaq fall as tech rotation trade resumes, US-Iran tensions flare
