That’s a Wrap!
Equities sold off to varying degrees on Tuesday to get a holiday-shortened a week off to a sloppy start. Throughout the day, there were reports of fighting in and around Iran’s Kharg Island. That forced oil prices higher. Front-month WTI Crude futures climbed in value for a sixth consecutive day. I now see the sweet stuff trading close to $94 per barrel. The S&P 500 gave up 0.58%, while the Nasdaq Composite surrendered 0.32% as both major U.S. equity indices notched back-to-back red-candle days.
Energy stocks ruled the session, but semiconductor stocks did well too. Intel ($INTC) led the group with a 9.1% gain on the day. Advanced Micro Devices ($AMD), another big Sarge name, ran 5.9%. Treasury yields rose and bond traders liquidated holdings. The benchmark U.S. 10-Year Note reached its highest yield since November 2023, while the 2-Year Note paid what amounted to a post-January high. Traders also had to deal with renewed trade tensions between the U.S. and Canada. Retaliatory tariffs from Canada on about $20 billion worth of U.S. goods took effect on Tuesday.
Have a good evening, gang. Tomorrow is Wednesday and Dougie is off again, so, God willing, you’ll be working with me again.
Always faithful.
Position: Long INTC and AMD equity
