2025-08-20 20:56
Investors rotate out of tech and into other sectors Target down after reaffirming annual forecast Estee Lauder down as annual profit forecast below estimates Aug 20 (Reuters) - The Nasdaq and S&P 500 fell on Wednesday as investors sold tech stocks and moved into less highly valued sectors, as they also awaited remarks from Federal Reserve officials at their Jackson Hole symposium this week. Tech stocks, which drove much of the recovery from Wall Street's April selloff, have been pulling back. The S&P 500 technology index (.SPLRCT) , opens new tab was down on the day, while sectors such as energy, healthcare and consumer staples rose. Sign up here. "A broader lens tells you it's more of a rotation than a true sell off," said Allspring's senior portfolio manager, Bryant van Cronkhite. "Tech valuations look extended in the context of inflated spending today. Number two, I would say that there are a lot of pockets of the market that look very attractive from a valuation standpoint and they've been broadly ignored." According to preliminary data, the S&P 500 (.SPX) , opens new tab lost 16.40 points, or 0.26%, to end at 6,394.97 points, while the Nasdaq Composite (.IXIC) , opens new tab lost 144.76 points, or 0.68%, to 21,170.19. The Dow Jones Industrial Average (.DJI) , opens new tab rose 1.48 points, or 0.00%, to 44,923.75. Analysts listing other factors behind the tech sell-off mentioned OpenAI CEO Sam Altman's comments last week about artificial intelligence stocks being "in a bubble," and a Massachusetts Institute of Technology study that showed many tech companies were struggling to translate AI into actual profits. Some investors also worried about government interference in the private sector. President Donald Trump's administration is looking into taking equity stakes in chip firms such as Intel (INTC.O) , opens new tab, weeks after unprecedented revenue-sharing deals with Nvidia and AMD. Nvidia (NVDA.O) , opens new tab, Advanced Micro Devices (AMD.O) , opens new tab, Intel (INTC.O) , opens new tab and Micron (MU.O) , opens new tab fell. Nvidia's quarterly results on August 27 are keenly awaited for clues on demand for artificial intelligence. Other megacap growth names such as Apple and Meta (META.O) , opens new tab also came under pressure. Minutes from the Fed's July meeting, where interest rates were left unchanged, showed almost all policymakers viewed it as appropriate to maintain the target range for the federal funds rate at 4.25% to 4.50%, despite two dissenters. Fed Chair Jerome Powell is expected to speak on Friday at the central bank's annual conference in Jackson Hole, Wyoming. His remarks will be closely watched for policy signals. Investors have been pricing in a 25-basis-point rate cut in September, according to data compiled by LSEG. Meanwhile, investors also monitored Trump's call for the resignation of Fed Governor Lisa Cook, with the president citing allegations that she was involved in mortgage fraud. Earnings from big retailers, seen as a barometer for the health of the American consumer, are also due this week as sentiment has taken a hit from concerns that tariffs could drive prices higher. Target (TGT.N) , opens new tab tumbled after the company named a new CEO and retained its annual forecasts that were lowered in May. Cosmetics giant Estee Lauder (EL.N) , opens new tab fell after tariff-related headwinds weighed on its annual profit forecast. (This story has been corrected to state that Fed Chair Jerome Powell is expected to speak on Friday at the central bank's annual conference, instead of saying the conference "kicks off Friday" with a speech, in paragraph 10) https://www.reuters.com/business/nasdaq-sp-500-end-lower-investors-sell-tech-buy-less-pricey-sectors-2025-08-20/
2025-08-20 20:22
TSX ends up 0.2% at 27,878.76 Energy adds 0.7% as ol settles 1.4% higher Materials group gains 2%; gold climbs Consumer discretionary ends 1.9% lower Aug 20 (Reuters) - Canada's major stock index rose on Wednesday as resource shares notched gains and investors awaited the start of bank earnings season. The S&P/TSX composite index (.GSPTSE) , opens new tab ended up 54.88 points, or 0.2%, at 27,878.76, but remained below last Wednesday's record closing high. Sign up here. "I think right now we're in the late-summer doldrums, said Colin Cieszynski, chief market strategist at SIA Wealth Management. "A lot of news is out, earnings season is now pretty much over and in Canada we're waiting to see what the banks have to say." Canada's major banks are set to begin reporting quarterly earnings on Tuesday. Financials account for 33% of the TSX's market capitalization, making it the largest weighting by far. The Toronto market is set to extend its record-setting run this year and next as lower borrowing costs, along with potentially greater clarity on U.S. tariffs, offset expected pressure on corporate profits, according to a Reuters poll that was published on Tuesday. The energy sector (.SPTTEN) , opens new tab rose 0.7% on Wednesday, as the price of oil settled 1.4% higher at $63.21 a barrel on a bigger-than-expected drop in U.S. crude inventories. Gold and copper prices also climbed. The materials group (.GSPTTMT) , opens new tab, which includes metal mining shares, was up 2%. Among the declining sectors was technology (.SPTTTK) , opens new tab, which dipped 0.4%. "Tech is down. That's to be expected with the Nasdaq selling off and U.S. tech stocks selling off," Cieszynski said. Declines for high-flying U.S. tech stocks and caution ahead of the Federal Reserve's highly anticipated Jackson Hole symposium weighed on Wall Street, with the S&P 500 declining for a fourth straight day. Consumer discretionary (.GSPTTCD) , opens new tab was also a drag, falling 1.9%, with shares of Restaurant Brands International Inc (QSR.TO) , opens new tab ending 4.2% lower. https://www.reuters.com/markets/europe/toronto-stock-market-ends-higher-oil-gold-prices-climb-2025-08-20/
2025-08-20 20:21
Tech-heavy US stock index ends down 0.7% Concerns over valuation, risk-off mood hurt tech stocks Trump's growing influence over tech sector raises concerns MUMBAI/SAN FRANCISCO, Aug 20 (Reuters) - Wall Street shares dropped on Wednesday, with a tech selloff extending into a second day, while a key meeting of central bankers later this week remained in focus for currency and rates traders. The S&P 500 (.SPX) , opens new tab ended down 0.2% and the tech-heavy Nasdaq Composite (.IXIC) , opens new tab slid 0.7%, adding to a steep decline on Tuesday. Both indexes partly recovered from deeper, earlier losses. Sign up here. The Dow Jones Industrial Average (.DJI) , opens new tab edged up 0.04%. Analysts blamed a confluence of factors for the weakness in tech stocks, including concerns over steep valuations, investors exiting profitable positions, and risk aversion. "To me, tech was overbought," said Seth Hickle, managing partner at Mindset Wealth Management. "We had really good earnings, and now it's kind of natural for the market just to sell some of that good news." Wariness over U.S. President Donald Trump's growing influence over tech companies has also been in focus for investors. U.S. Commerce Secretary Howard Lutnick is looking into the government taking equity stakes in Intel (INTC.O) , opens new tab and other chip companies, two sources told Reuters. That follows other unusual revenue-sharing deals Washington recently struck with artificial intelligence chip company Nvidia (NVDA.O) , opens new tab and Advanced Micro Devices (AMD.O) , opens new tab. Apple (AAPL.O) , opens new tab, Alphabet (GOOGL.O) , opens new tab and Amazon (AMZN.O) , opens new tab each dipped more than 1%. European shares rose, with the pan-European STOXX 600 index (.STOXX) , opens new tab up 0.25%. Britain's FTSE 100 (.FTSE) , opens new tab rallied 1.17% to a record high, boosted by gains in consumer and healthcare companies. FOCUS ON JACKSON HOLE The U.S. dollar weakened slightly against a basket of peers after Trump called on Federal Reserve Governor Lisa Cook to resign. The 10-year U.S. Treasury yield was little changed at 3.29%, while the 2-year Treasury yield slipped to 3.74%. The focus is now on the Federal Reserve's August 21-23 Jackson Hole symposium, where Fed Chair Jerome Powell is due to speak on Friday on the economic outlook and the U.S. central bank's policy framework. Powell's remarks on the near-term outlook for interest rates will be keenly watched as traders are almost fully pricing in a rate cut next month. "Even if Federal Reserve Chair Jerome Powell emphasises muted unemployment over sharply revised payrolls, that would be a hard sell to both the White House and a market that is pricing in 21 bp of rate cuts for September," analysts at ING said in a note. Minutes from the Fed's July meeting, where interest rates were left unchanged, showed viewed it as appropriate to maintain the target range for the federal funds rate at 4.25% to 4.50%, despite two dissenters. Elsewhere, Sweden's central bank kept its key interest rate on hold as expected, while the Reserve Bank of New Zealand cut policy rates to a three-year low and signaled further easing, sending the kiwi down by more than 1%. Consumer prices in Britain climbed 3.8% in July, data showed, the fastest annual rise for a Group of Seven economy. The data nudged sterling higher, but it quickly pared gains, while the fact that inflation was not even higher prompted a rally in government bonds. The benchmark 10-year gilt yield was last down 7 basis points at 4.68% . Oil prices climbed about 1% on a bigger-than-expected weekly drop in U.S. crude inventories as investors awaited the next steps in talks to end the Ukraine war, with sanctions on Russian crude remaining in place for now. Spot gold rose 1% to $3,348.70 an ounce. https://www.reuters.com/world/china/global-markets-wrapup-7-2025-08-20/
2025-08-20 19:51
NEW YORK, Aug 20 (Reuters) - BP's (BP.L) , opens new tab 440,000-bpd refinery in Whiting, Indiana, was in the process of restarting after flooding disrupted its operations earlier this week, industry monitor IIR said on Wednesday, adding the units would take several days to ramp up. The facility aims to be back running at full rates by early next week, IIR said. Sign up here. The refinery reported flaring due to flooding caused by a severe thunderstorm. Materials will continue to be burned in the flares as needed to maintain safe operations, BP said in a social media post on Wednesday, adding that response and operations teams have been on site since Monday evening. BP declined to comment on the refinery's restart timeline. The Whiting refinery, the largest in the U.S. Midwest, produces a wide range of liquid fuels, including gasoline, diesel and jet fuel. Gasoline and diesel will be impacted at the retail level, Patrick De Haan, head of petroleum analysis at GasBuddy, said in an email on Wednesday. The Great Lakes market will likely see prices rise by 10 to 20 cents a gallon over the next few days, while consumers in the Chicago area could see an even bigger jump of 15 to 30 cents a gallon. https://www.reuters.com/business/energy/indianas-bp-refinery-restarts-after-severe-flooding-2025-08-20/
2025-08-20 19:49
VALPARAISO, Aug 20 (Reuters) - Chilean miner Codelco (COBRE.UL) expects to produce 316,000 metric tons of copper at its El Teniente mine this year, CEO Ruben Alvarado said on Wednesday, after a deadly collapse at the site in late July. The world's biggest underground copper mine last year produced 356,000 metric tons of the red metal. Sign up here. The firm also estimates a $340 million hit from the incident, which killed six workers, Alvarado added. Codelco will lower its 2025 production guidance due to the loss at the mine, chairman Maximo Pacheco told Reuters after a congressional hearing, adding that the company is still working to hit its target of 1.7 million tons of copper per year by 2030. https://www.reuters.com/world/americas/chiles-codelco-pegs-el-teniente-output-316000-tons-after-deadly-collapse-2025-08-20/
2025-08-20 19:35
US crude inventories drop by 6 million barrels, exceeding forecasts Uncertainty over Ukraine peace talks affects oil price volatility Trump says US may provide air support to back a Ukraine deal NEW YORK, Aug 20 (Reuters) - Oil prices climbed about 2% on Wednesday on a bigger-than-expected weekly drop in U.S. crude inventories as investors awaited the next steps in talks to end the Ukraine war, with sanctions on Russian crude remaining in place for now. Brent crude futures were up $1.05, or 1.6%, to settle at $66.84 a barrel. U.S. West Texas Intermediate (WTI) crude futures rose 86 cents, or 1.4%, to settle at $63.21. Sign up here. The U.S. Energy Information Administration said energy firms pulled 6.0 million barrels of crude from inventories during the week ended August 15. , That was bigger than the draw of 1.8 million barrels forecast by analysts in a Reuters poll and the decline of 2.4 million barrels that market sources said the American Petroleum Institute trade group cited in its figures on Tuesday. "We had a decent-sized crude drawdown. We saw a rebound in exports ... That and the strong refinery demand really makes this a bullish report," said John Kilduff, partner with Again Capital. On Tuesday, crude prices fell more than 1% - with WTI closing at its lowest level since May 30 - on optimism that an agreement to end the Russia-Ukraine war seemed closer. "Much of the choppy price action has been driven by daily updates to the Ukraine/Russian negotiations that have gone back and forth from bearish to bullish as far as the impact on future oil balances is concerned," analysts at energy advisory firm Ritterbusch and Associates said in a note. U.S. President Donald Trump conceded that Russian President Vladimir Putin might not want to make a deal. Russia was the second-biggest producer of crude in 2024 behind the U.S., so any agreement that could ease sanctions on Moscow should boost the amount of Russian oil available for export to global markets. On Tuesday, Trump said he had ruled out putting U.S. troops on the ground in Ukraine, but said the U.S. might provide air support as part of a deal to end Russia's war in the country. On Wednesday, Russia said attempts to resolve security issues relating to Ukraine without Moscow's participation were a "road to nowhere", sounding a warning to the West as it scrambles to work out guarantees for Kyiv's future protection. Russia said it expects to continue supplying oil to India despite warnings from the U.S., Russian embassy officials in New Delhi said on Wednesday, adding that Moscow hopes trilateral talks will soon take place with India and China. Trump has announced an additional tariff of 25% on Indian goods exported to the U.S. from August 27, as a punishment for buying Russian oil. India's state-run refiners Indian Oil (IOC.NS) , opens new tab and Bharat Petroleum (BPCL.NS) , opens new tab have bought Russian oil for September and October delivery, resuming purchases after discounts widened, two company officials aware of the matter said on Wednesday. Russian forces have advanced in the east of Ukraine's Dnipropetrovsk region, taking the village of Novoheorhiivka close to the Donetsk region, Russia's defence ministry said on Wednesday. "The likelihood of a quick resolution to the conflict with Russia now seems unlikely," Daniel Hynes, senior commodity strategist at ANZ, said in a note. OTHER OIL SUPPLIERS In other supply news, Iran believes the moment has not yet arrived for "effective" nuclear talks with Washington, Tehran's top diplomat said on Wednesday. Iran was the third-biggest producer of crude in the Organization of the Petroleum Exporting Countries (OPEC) in 2024 behind Saudi Arabia and Iraq, so any agreement to ease sanctions on Tehran should boost Iranian oil exports to global markets. In Saudi Arabia, meanwhile, crude exports slipped in June to their lowest level in three months, according to data from the Joint Organizations Data Initiative (JODI). In Norway, the second biggest oil producer in Europe after Russia, combined oil and gas production exceeded an official forecast by 3.9% in July, according to the Norwegian Offshore Directorate (NOD). https://www.reuters.com/business/energy/oil-prices-climb-2-drop-us-crude-inventories-investors-focus-ukraine-peace-push-2025-08-20/
