Stocks Dip at Open as Yields and Oil Pressure Markets
U.S. stocks opened lower Thursday as Treasury yields and oil prices rose, with technology shares weak after Oracle sent a force majeure notice to a data center developer. Philadelphia Fed President Anna Paulson suggested further rate hikes may be needed. Jobless claims fell to 197,000, and new home sales beat expectations.
Treasury yields hovered near two-decade highs, with the 10-year at 5.09%, while WTI crude climbed to $94.09 and Brent approached $100. The Philadelphia Fed’s Anna Paulson, a voting FOMC member, said “modest further tightening” may be warranted, reinforcing last week’s rate hike—the first in three years. Oracle’s force majeure notice to data-center developer OWL pressured AI-related shares, including Bloom Energy, which was slated to power the New Mexico campus.
Economic data offered mixed signals: weekly jobless claims fell to 197,000, below forecasts, while new home sales surged 6.4% to a 684,000 annualized pace—the highest since January. However, continued claims rose slightly. Sector moves included Darden’s in-line results and Starbucks closing about 1% of North American stores. JPMorgan reshuffled REIT ratings, upgrading several names while downgrading Alexandria Real Estate.
Rising yields and oil prices could squeeze consumers and corporate margins, potentially slowing hiring and discretionary spending. Tech weakness from Oracle’s notice may ripple through AI infrastructure investments, affecting suppliers and regional developers. Strong housing and jobless data suggest resilience, but further Fed hikes could cool that momentum. Investors, retirees, and homebuyers may face higher borrowing costs, while energy-sensitive industries—transport, manufacturing—could see profitability pressure. The market’s mixed open reflects uncertainty about whether inflation or growth will dominate the coming quarters.