[BRIEFING.COM] The major averages extended their holiday-shortened week decline on Wednesday as rising oil prices and higher Treasury yields kept equities under pressure throughout the session. The S&P 500 (-0.5%), Nasdaq Composite (-0.6%), and DJIA (-0.8%) all finished lower, while the Russell 2000 (-1.3%) and S&P Mid Cap 400 (-1.1%) underperformed amid even steeper losses outside the large-cap averages.

Crude oil remained one of the session's primary headwinds as the U.S.-Iran conflict continued to escalate. WTI crude settled $3.05 higher (+3.3%) at $96.07 per barrel after reports that the U.S. struck several Iranian oil tankers in response to an attack on one of its warships. Iran subsequently warned that it would escalate its counterstrikes as U.S. attacks continue, according to Bloomberg. The advance in crude provided a considerable boost to the energy sector (+1.1%), which stood alone in positive territory among the 11 S&P 500 sectors.

Higher Treasury yields added another layer of pressure after the Treasury Department announced plans to buy back $6 billion of long-term debt. The announcement sparked a sharp increase in rates during the late morning and helped push stocks to their session lows. The 10-year note yield ultimately settled three basis points higher at 4.84%.

The combination of higher oil prices and rising rates weighed particularly heavily on several economically and rate-sensitive areas. The consumer discretionary (-1.4%) and consumer staples (-0.9%) sectors finished with sizable losses, while the utilities (-1.2%) and real estate (-1.1%) sectors also struggled.

The industrials sector (-1.5%) finished at the bottom of the sector standings, with Vertiv (VRT 262.87, -27.96, -9.61%) among the more pronounced laggards.

Casey's General (CASY 629.03, -104.46, -14.24%) was another notable decliner, finishing as the weakest S&P 500 components following its earnings report. The company exceeded EPS and revenue expectations, but the reaction reflected some disappointment surrounding its inside operations and outlook for the remainder of the year.

The information technology sector (-0.2%) once again held up considerably better than the broader market as semiconductor stocks extended their recent relative strength. The PHLX Semiconductor Index gained 0.4%, with several semiconductor names ranking among the better-performing S&P 500 components, although weakness in NVIDIA (NVDA 223.79, -1.94, -0.86%) limited the group's contribution.

Apple (AAPL 315.34, -0.88, -0.28%) briefly moved into positive territory during the afternoon following the company's product event before ultimately finishing the session lower. Apple introduced the iPhone Duo, its first foldable iPhone, along with the iPhone 18.

Meta Platforms (META 653.69, +40.21, +6.55%) remained the standout among the mega-cap stocks following the debut of its Muse personal AI agent. Its sizable gain helped limit the communication services sector's decline to 0.3% despite weakness in Alphabet (GOOG 328.38, -7.00, -2.09%) and sharp losses in Comcast (CMCSA 24.59, -1.74, -6.61%) and Charter Comm (CHTR 133.89, -11.85, -8.13%) . The latter two came under pressure after Comcast highlighted heightened "competitive intensity" during comments at the Goldman Sachs Communacopia + Technology Conference.

By the close, the scattered strength in semiconductors and META had done little to change the broader complexion of the session. Small- and mid-cap stocks underperformed, 10 of the 11 S&P 500 sectors declined, and the energy sector's gain largely reflected the same surge in crude oil that weighed on much of the rest of the market. With Treasury yields also moving higher, Wednesday's action extended the broadly defensive start to the abbreviated week.

U.S. Treasuries finished Wednesday with losses across the curve, which produced fresh 2026 highs in yields on the 10-year note and shorter tenors. Treasuries climbed off their opening lows with the long bond leading the way, but that move was rebuffed after the U.S. Treasury specified its increased buyback plans. Treasuries reached lows shortly after the news, recovering some of their losses as the day went on. The bounce received some short-lived support from an excellent $38 billion 10-year note sale, but shorter tenors returned to their lows ahead of the close. The 2-year note yield settled up three basis points to 4.43%, and the 10-year note yield settled up three basis points to 4.84%. 

• Russell 2000: +17.7% YTD
• Nasdaq Composite: +13.0% YTD
• S&P Mid Cap 400: +12.5% YTD
• S&P 500: +11.6% YTD
• DJIA: +9.0% YTD

Reviewing today's data: 

• Weekly MBA Mortgage Applications Index -2.7%; Prior 0.8%

[BRIEFING.COM] Stocks remain mostly lower, with the major averages set to extend yesterday's losses.

Crude oil futures settled today's session $3.05 higher (+3.3%) at $96.07 per barrel, with rising oil prices and Treasury yields keeping broad pressure on equities throughout the session.

[BRIEFING.COM] The S&P 500 (-0.4%), Nasdaq Composite (-0.6%), and DJIA (-0.6%) are off their session lows, but remain firmly lower as the market enters the final hour of the session.

The information technology sector (-0.1%) continues to oscillate around its flat line, with Apple (AAPL 317.04, +0.82, +0.26%) moving into slightly positive territory after the company's product day. Of particular note, Apple introduced iPhone Duo, its first foldable iPhone, with a 7.6-inch inner display and 5.4-inch outer display in a thinner form factor when opened. The device runs on the new A20 Pro chip and uses a custom vapor chamber and dual-battery architecture for all-day battery life. Apple said iPhone Duo includes a new hinge design, grade 5 titanium build, IP68 rating, and camera features tailored to the folding form factor. Pre-orders begin Friday, Oct. 16, with availability starting Friday, Oct. 23; Apple Pencil USB-C support is slated for later this year.

[BRIEFING.COM] The S&P 500 (-0.39%) is down about 30 points this afternoon, in "first" place with more aggressive losses being had elsewhere.

Briefly, S&P 500 constituents Vertiv (VRT 262.14, -28.69, -9.86%), Comcsat (CMCSA 24.63, -1.70, -6.46%), and Paramount Skydance (PSKY 10.26, -0.54, -5.00%) pepper the bottom of the average. CMCSA slides after its CFO said Q3 broadband subscriber losses are unlikely to improve year over year amid aggressive, "irrational" fiber pricing, raising concerns about competition and near-term earnings, while PSKY falls after its legal fight with California over the Warner Bros. Discovery merger intensified, with the company seeking a $1.88 bln bond to protect against potential costs from the state-led challenge.

Meanwhile, Datadog (DDOG 225.15, +14.92, +7.10%) is atop the standings as investors rotate into high-growth software and AI names.

[BRIEFING.COM] With about two hours remaining on Wednesday afternoon the tech-heavy Nasdaq Composite (-0.53%) is in second place, down about 140 points.

Gold futures settled $21.70 higher (+0.5%) at $4,460.70/oz, as escalating U.S./Iran tensions and higher oil prices boosted safe-haven demand. A weaker U.S. dollar also supported gold, while investors remained focused on upcoming inflation data and the Fed's rate-cut outlook.

Meanwhile, the U.S. Dollar Index is now down about -0.1% to $98.74.

[BRIEFING.COM] The Dow Jones Industrial Average (-0.49%) is in second place on Wednesday afternoon, down about 260 points.

A look inside the DJIA shows that Nike (NKE 37.16, -0.94, -2.47%), Alphabet (GOOGL 331.67, -6.69, -1.98%), and Procter & Gamble (PG 142.84, -2.74, -1.88%) are solidly lower.

Meanwhile, IBM (IBM 236.31, +4.22, +1.82%) holds firm atop the standings.

The DJIA is now -2.27% lower off last week's highs.

Elsewhere, U.S. Treasuries hover above their lows that were set after the Treasury announced its updated buyback schedule, which calls for a $6 bln buyback of tenors between 10- and 20-yrs later this afternoon. The market has seen some recent impulse buying in immediate reaction to this week's second note auction. The $38 bln 10-yr note sale met excellent demand, drawing a high yield of 4.834%, which stopped through the when-issued yield by 1.5 basis points. Meanwhile, the bid-to-cover ratio (2.71x vs 2.50x average) and indirect takedown (79.2% vs 70.6% average) were well above the prior 12-auction average.

[BRIEFING.COM] The major averages are broadly lower at midday as another sharp increase in oil prices and a spike in Treasury yields create a difficult backdrop for equities. The S&P 500 (-0.4%), Nasdaq Composite (-0.6%), and DJIA (-0.6%) remain firmly in negative territory, extending the weakness that began the holiday-shortened week.

Crude oil continues to exert considerable pressure on the broader market, with WTI up $2.68 (+2.8%) to $95.71 per barrel amid further escalation in the U.S.-Iran conflict. Reports indicated that the U.S. struck several Iranian oil tankers in response to an attack on one of its warships, while Iran has warned that it will escalate its counterstrikes as U.S. attacks continue, according to Bloomberg.

The energy sector (+0.8%) is benefiting from the move in crude and is the only S&P 500 sector trading higher.

Treasury yields have added another headwind after the Treasury Department announced plans to buy back $6 billion of long-term debt. The announcement prompted a sharp move higher in rates, with the 10-year note yield currently up four basis points to 4.84% after reaching 4.85% earlier. Stocks fell to fresh session lows alongside the initial jump in yields.

The weakness is decidedly broad, with decliners outpacing advancers by roughly a 3-to-1 margin on the NYSE and Nasdaq. The Russell 2000 (-1.3%) and S&P Mid Cap 400 (-1.0%) are underperforming the major averages amid the pressure from higher rates, while other rate-sensitive areas are also struggling. The utilities (-1.3%) and real estate (-1.1%) sectors are among the weaker performers.

The consumer discretionary (-1.5%) and consumer staples (-1.0%) sectors are also under considerable pressure amid the surge in oil prices. Casey's General (CASY 621.85, -111.64, -15.22%) is the weakest S&P 500 component following its earnings report. The company exceeded EPS and revenue expectations, but the negative response has kept attention on its inside operations and outlook for the remainder of the year.

The information technology sector (-0.1%) is holding up considerably better than the broader market thanks to another relatively strong showing from semiconductor stocks. The PHLX Semiconductor Index is up 0.5%, with several semiconductor names ranking among the S&P 500's best performers. That strength has helped offset weakness in NVIDIA (NVDA 224.31, -1.42, -0.63%), while Apple (AAPL 313.97, -2.25, -0.71%) is also lower ahead of its product event this afternoon.

Meta Platforms (META 651.00, +37.52, +6.12%) is the clear standout among the mega-cap stocks after the debut of its Muse personal AI agent. Its sizable gain has helped limit the communication services sector's decline to 0.5% despite weakness in Alphabet (GOOG 327.89, -7.49, -2.23%) and sharp losses in Comcast (CMCSA 24.55, -1.78, -6.76%) and Charter Comm (CHTR 136.25, -9.49, -6.51%). The latter two have come under pressure after Comcast highlighted heightened "competitive intensity" during comments at the Goldman Sachs Communacopia + Technology Conference.

Overall, today's action reflects another broadly negative session as escalating geopolitical tensions keep oil prices elevated and the renewed rise in Treasury yields adds pressure across rate-sensitive areas of the market. Semiconductor strength and META have provided some pockets of support, but weak breadth and the underperformance of smaller-cap stocks point to limited buying interest across the broader market.

Reviewing today's data: 

• Weekly MBA Mortgage Applications Index -2.7%; Prior 0.8%

[BRIEFING.COM] Participation remains weak across the stock market today, with the S&P 500 (-0.6%), Nasdaq Composite (-0.8%), and DJIA (-0.8%) little changed from previous levels.

Comcast (CMCSA 24.34, -2.00, -7.58%) has pulled back, now one of the worst-performing S&P 500 components following comments at the Goldman Sachs Communacopia + Technology Conference highlighting the heightened "competitive intensity" the company is currently facing.

Charter Comm (CHTR 137.78, -7.96, -5.46%) is down similarly, though Meta Platforms (META 651.40, +37.92, +6.18%) continues to add to its gain for the day, limiting losses in the communication services sector (-0.5%).

[BRIEFING.COM] The major averages remain at session lows at midday.

While stocks remain broadly lower, there are a few positive stock-specific stories in the mix today. Chime (CHYM 33.79, +1.48, +4.58%) is trading nicely higher after announcing a deal to acquire Stride Bank for $590 million in cash, marking a major step in the fintech's evolution from bank-partner model to owning its own national bank subsidiary. Stride has been Chime's bank partner for more than seven years and will become Chime Bank upon closing. The deal is expected to be immediately accretive to EPS and generate more than $100 million of net synergies, providing Chime with greater control over its banking infrastructure while lowering costs and funding expenses. Chime also raised Q3 and FY26 guidance. The deal is expected to close in 1H27, as it requires regulatory approvals.

[BRIEFING.COM] The S&P 500 (-0.6%), Nasdaq Composite (-0.9%), and DJIA (-0.9%) are at session lows just before midday as rising oil prices continue to weigh on stocks.

WTI crude oil is currently up $3.37 (+3.6%) to $96.41 per barrel following reports that the U.S. has struck several Iranian oil tankers in response to an attack on one of its warships. The rise in crude prices gives a boost to the energy sector (+0.8%), which is currently the only S&P 500 sector to hold a gain for the day and the week.

Adding to the pressure, Treasury yields have spiked following the Treasury Department's announcement of plans to buy back $6 billion of long-term debt, compared with the normal $2 billion buyback approach that Treasury Secretary Bessent referenced on August 19. The 10-year note yield has climbed to 4.85%, while the 30-year note yield has risen to 5.30%, with stocks falling to fresh session lows alongside the move higher in rates.

Weakness is decidedly broad, with decliners outpacing advancers by a roughly 3-to-1 ratio on the NYSE and a greater than 2-to-1 clip on the Nasdaq.

[BRIEFING.COM] The major averages remain little changed from their previous levels. 

Casey's General (CASY 627.47, -106.02, -14.45%) is under pressure after reporting its Q1 (Jul) results last night. Casey's General delivered another large upside EPS quarter, while revenue increased 24.3% year-over-year to $5.68 billion, also above expectations. While the convenience-store operator did not necessarily disappoint on the top or bottom line, the negative response appears to reflect a less impressive quarter than Q4, which sent shares sharply higher, with fuel doing more of the heavy lifting relative to inside operations. Meanwhile, Casey's General maintained its FY27 outlook despite the sizable earnings beat, keeping the focus on expectations for the remainder of the year.

[BRIEFING.COM] The S&P 500 (-0.3%), Nasdaq Composite (-0.4%), and DJIA (-0.6%) trade in a relatively stable range, modestly below their baselines.

Mega-cap performance is mixed so far, with the Vanguard Mega Cap Growth ETF (-0.3%) facing a modest loss again today. Meta Platforms (META 640.78, +27.30, +4.45%) is a standout following the debut of its Muse personal AI agent, while Alphabet (GOOG 327.34, -8.04, -2.40%) lags, weighing on the communication services sector (-0.6%).

Elsewhere in the information technology sector (flat), Apple (AAPL 313.80, -2.42, -0.77%) trades modestly lower ahead of this afternoon's product event.

[BRIEFING.COM] The S&P 500 (-0.3%), Nasdaq Composite (-0.2%), and DJIA (-0.7%) are lower shortly after the open as stocks face another bout of broad, oil-driven weakness similar to yesterday's session. WTI Crude remains above $95 per barrel, lifting the energy sector (+1.6%) while putting pressure on the broader market.

The information technology sector (+0.1%) is the only other S&P 500 sector that holds a gain, supported by resilience across its semiconductor names as the PHLX Semiconductor Index (+0.5%) adds to yesterday's gains.

Meanwhile, nine S&P 500 sectors trade lower, with the consumer discretionary (-1.0%) and consumer staples (-0.8%) sectors among the weakest performers. Casey's General (CASY 602.79, -130.70, -17.82%) is the worst-performing S&P 500 component following earnings.

Elsewhere, the health care sector (-0.3%) faces a more modest loss after yesterday's sharp retreat, though particular weakness in UnitedHealth (UNH 380.35, -20.49, -5.11%) weighs on the Dow.

The stock market remains on track for a lower opening this morning.

On the earnings front, Casey's General (CASY 648.95, -84.54, -11.5%) is sharply lower in premarket trading despite beating EPS expectations by $0.59 and also topping revenue estimates. The company provided FY26 guidance that calls for inside same-store sales growth of 2% to 5%.

U.S. equity futures point to a lower open as European markets retreat with Brent crude back at $100 per barrel.

Equity indices in the Asia-Pacific region ended the midweek session on a mostly lower note. China's inflation increased for the first month since April, reflecting the impact of higher energy prices. Still, CPI growth (0.4%) was only slightly ahead of expectations (0.3%). China is reportedly limiting IPO approvals of startups that are working on humanoid robots after a poor debut of Unitree. Japan's cabinet reshuffle will take place next Thursday, according to Asahi. Top Reserve Bank of Australia officials have signaled willingness to raise the cash rate again before the end of the year.

• In economic data:
  • China's August CPI increased 0.4% month-over-month (expected 0.3%; last -0.1%) and 0.8% year-over-year, as expected (last 0.5%).
  • China's August PPI increased 3.8% year-over-year (expected 3.6%; last 3.5%).
  • Japan's September Reuters Tankan Index increased to 21 from 18.
  • Japan's August Machine Tool Orders increased 64.7% year-over-year (last 50.4%).
  • South Korea's August Unemployment Rate decreased to 2.7% from 2.8%.

---Equity Markets---

• Japan's Nikkei: -0.2%
• Hong Kong's Hang Seng: -0.2%
• China's Shanghai Composite: +0.3%
• India's Sensex: -1.1%
• South Korea's Kospi: +1.4%
• Australia's ASX All Ordinaries: -0.1%

Major European indices trade in the red after Brent oil returned to $100/bbl for the first time since July. Spain's IBEX (-2.4%) is leading the weakness, also revisiting levels last seen in late July. Zara owner Inditex is leading the weakness after missing Q2 profit expectations. Industrial and military names are also among the laggards while energy stocks outperform.

• In economic data:
  • France's July Industrial Production decreased 0.4% month-over-month (expected 0.2%; last -0.1%).

---Equity Markets---

• STOXX Europe 600: -1.2%
• Germany's DAX: -1.3%
• U.K.'s FTSE 100: -0.9%
• France's CAC 40: -1.5%
• Italy's FTSE MIB: -0.8%
• Spain's IBEX 35: -1.7%

The S&P 500 futures currently trade 36 points below fair value.

Apple (AAPL 315.07, -1.15, -0.4%) is modestly lower in the premarket ahead of today's product event, at which it is expected to unveil a new foldable iPhone.

Equity futures point to a lower opening this morning, putting stocks on track to extend yesterday's broad decline. The cautious tone comes as European equities retreat alongside another increase in oil prices, with Brent crude returning to $100 per barrel for the first time since July and WTI crude up $2.45 (+2.6%) to $95.48 per barrel.

The major averages started the holiday-abbreviated week on a weak note as escalating hostilities in the Middle East pushed oil prices higher and pressured much of the market. Semiconductor stocks were a notable exception, however, as several high-profile technology conferences provided encouraging commentary on AI demand and helped the group outperform, limiting the losses at the index level.

Investors have a modest batch of earnings reports to assess this morning, though overall corporate news flow is once again on the lighter side.

Separately, the MBA Mortgage Applications Index declined 2.7% after increasing 0.8% in the prior week. There are no additional U.S. economic releases scheduled today.

In corporate news:

• Chime (CHYM 35.40, +3.09, +9.56%) is indicated higher after agreeing to acquire a longtime bank partner for $590 million in cash and issuing upside third-quarter and fiscal 2026 revenue guidance. The transaction is expected to be immediately accretive to earnings per share upon closing.
• Chewy (CHWY 23.82, +0.55, +2.36%) topped second-quarter earnings and revenue expectations and provided fiscal 2026 guidance.
• Meta Platforms (META 641.01, +27.53, +4.6%) is up firmly in the premarket after the debut of its Muse personal AI agent.
• Sunbelt Rentals (SUNB 71.91, +2.59, +3.74%) exceeded fiscal first-quarter earnings and revenue expectations and raised its fiscal 2027 revenue growth and adjusted EBITDA guidance.

Reviewing overnight developments:

Asia-Pacific equities ended mostly lower. China reported its first increase in consumer inflation since April, reflecting higher energy prices, while Australian central bank officials signaled a willingness to raise rates again before year-end. Japan's Nikkei: -0.2%, Hong Kong's Hang Seng: -0.2%, China's Shanghai Composite: +0.3%, India's Sensex: -1.1%, South Korea's Kospi: +1.4%, Australia's ASX All Ordinaries: -0.1%.

In news:

• China is reportedly limiting IPO approvals for startups developing humanoid robots after a weak sector debut.
• Japan's cabinet reshuffle is expected next Thursday, according to Asahi.
• Top Reserve Bank of Australia officials signaled a willingness to raise the cash rate again before the end of the year.

In economic data:

• China's August CPI 0.4% m/m (expected 0.3%; last -0.1%); 0.8% yr/yr, as expected (last 0.5%). August PPI 3.8% yr/yr (expected 3.6%; last 3.5%)
• Japan's September Reuters Tankan Index 21 (last 18). August Machine Tool Orders 64.7% yr/yr (last 50.4%)
• South Korea's August Unemployment Rate 2.7% (last 2.8%)

Major European markets are lower after Brent crude returned to $100 per barrel. Energy shares are outperforming, while industrial and military names are among the laggards. STOXX Europe 600: -1.4%, Germany's DAX: -1.5%, U.K.'s FTSE 100: -1.1%, France's CAC 40: -2.0%, Italy's FTSE MIB: -1.4%, Spain's IBEX 35: -2.3%.

In news:

• A profit miss from a large Spanish retailer added to the region's weakness.

In economic data:

• France's July Industrial Production -0.4% m/m (expected 0.2%; last -0.1%)

[BRIEFING.COM] The major averages finished lower on Tuesday as rising oil prices and renewed geopolitical tensions created a difficult backdrop for equities to begin the holiday-shortened week. The S&P 500 (-0.6%), Nasdaq Composite (-0.3%), and DJIA (-1.2%) all ended in negative territory, with pronounced health care weakness contributing to the blue-chip average's underperformance. The Russell 2000 (-0.5%) and S&P Mid Cap 400 (-0.7%) finished mostly in line with the broader market.

Crude oil remained a central influence throughout the session, settling $1.52 higher (+1.7%) at $93.02 per barrel following another pickup in Middle East hostilities over the weekend, including an exchange of strikes between the U.S. and Iran and a Houthi attack on a Saudi energy facility. The increase added to the difficult backdrop for equities, although the energy sector (+1.0%) benefited from the move and joined the utilities sector (+0.9%) as the only two S&P 500 sectors to finish higher.

Geopolitical concerns remained elevated into the afternoon. Reports indicated that the U.S. struck Iranian oil tankers as explosions were reported near Kharg Island, Iran's primary oil export hub, while Iran reportedly launched another attack against U.S. Navy ships. Crude oil continued to climb following the settlement as the headlines reinforced concerns surrounding further escalation and potential disruptions to regional energy supplies.

Elsewhere, the health care sector (-2.6%) finished at the bottom of the sector standings. Amgen (AMGN 393.17, -44.06, -10.08%) was among the day's weakest S&P 500 components after clinical trial setbacks at Novartis AG (NVS 137.70, -22.29, -13.93%) weighed on related names, while biotechnology stocks also faced considerable pressure. Amgen's sharp decline had an outsized impact on the DJIA and contributed significantly to its underperformance.

The financials sector (-1.4%) was another notable laggard amid broadly lower trading across the group.

Some oil- and rate-sensitive areas of the market also faced pronounced selling pressure, with the iShares U.S. Home Construction ETF falling 3.1%.

Meanwhile, the information technology sector (-0.2%) held up considerably better than the broader market thanks to continued strength across semiconductor stocks. The PHLX Semiconductor Index gained 1.3%, helping offset a 1.8% decline in the iShares GS Software ETF as well as weakness in NVIDIA (NVDA 225.73, -4.63, -2.01%) and other mega-cap stocks. Several company-specific catalysts contributed to the semiconductor outperformance. Intel (INTC 104.47, +8.67, +9.05%) rallied following positive analyst commentary and reports of potential price increases, while Advanced Micro Devices (AMD 505.74, +28.17, +5.90%) advanced after upbeat commentary regarding accelerating AI demand and its server CPU opportunity. Qualcomm (QCOM 174.09, +5.35, +3.17%) also gained after highlighting a multi-year agreement with Amazon (AMZN 256.97, -1.54, -0.60%) covering custom silicon and optical connectivity solutions, which management described as significant validation for its expanding data center business.

Optical stocks were another notable pocket of strength after Verizon (VZ 50.41, +0.27, +0.54%) and Corning (GLW 165.99, +11.69, +7.58%) announced a multi-billion dollar agreement covering more than 80 million miles of high-density optical fiber and connectivity solutions from 2027 through 2032. The agreement provided a positive read-through for the broader optical infrastructure market, helping propel sizable gains in Lumentum (LITE 978.54, +97.28, +11.04%) and Coherent (COHR 301.88, +20.02, +7.10%).

Tuesday's decline ultimately reflected broad weakness beneath the surface, with only two S&P 500 sectors finishing higher. Rising oil prices and renewed geopolitical tensions remained important headwinds, while sharp losses in health care and financial stocks added to the pressure. Semiconductor strength provided a meaningful counterweight and helped limit the Nasdaq Composite's decline, but investors generally remained cautious ahead of the August Producer Price Index on Thursday and Consumer Price Index on Friday, both of which could influence rate expectations ahead of next week's FOMC meeting.

U.S. Treasuries began the week with modest losses after failing to bounce from their lower start. The U.S. Treasury kicked off this week's note auction slate with a solid $58 billion 3-year note offering, which will be followed by a 10-year note sale tomorrow. The 2-year note yield settled up two basis points to 4.40%, and the 10-year note yield settled up two basis points to 4.81%. 

• Russell 2000: +19.3% YTD
• S&P Mid Cap 400: +13.7% YTD
• Nasdaq Composite: +13.7% YTD
• S&P 500: +12.1% YTD
• DJIA: +9.8% YTD

Reviewing today's data:

• Total consumer credit increased by $18.1 bln in July  (Briefing.com consensus $11.3 bln) while the June increase was revised down to $14.5 bln from $14.2 bln.
• The NFIB Small Business Optimism Index fell to 98.7 in August (Briefing.com consensus 99.3) from 99.8 in July.