S&P 500 Gains and Losses Today: Falling Oil Prices Pressure Refining Stocks
Key Takeaways
- The S&P 500 jumped 1.0% higher on Tuesday, Oct. 8, as tech stocks regained momentum and oil prices cooled.
- Shares of Palantir Technologies surged as an analyst highlighted underappreciated AI opportunities for software firms.
- Crude oil prices moved lower amid hopes for an abatement in global tensions, pressuring shares of oil refiners.
Major U.S. equities indexes traded in positive territory on Tuesday, boosted by a resurgence among tech stocks. The S&P 500 jumped 1.0%, while the Dow added 0.3%. The tech sector’s outperformance helped the Nasdaq surge by 1.5%.
Shares of data analytics firm Palantir Technologies (PLTR) jumped 6.6% on Tuesday, the strongest daily gain in the S&P 500. Asset management firm Ark Invest spotlighted software as an area with more room to benefit from artificial intelligence (AI) trends. Rahul Bhushan, managing director of Ark Invest Europe, said firms like Palantir could be poised to take market share from the mega-cap tech companies whose cloud-computing platforms have been a focal point in the emerging AI boom.
Edwards Lifesciences (EW) shares surged 6.2%. The medical device company could see increased momentum for its heart valve repair system after The Centers for Medicare and Medicaid Services (CMS) said it was evaluating the possibility of national Medicare reimbursement for transcatheter repair procedures.
Shares of cybersecurity provider Palo Alto Networks (PANW) were up 5.1% following positive commentary from several investment research firms. Goldman Sachs boosted its price target on Palo Alto, suggesting the company’s strategy to upgrade to more advanced serviced offerings could drive growth. Meanwhile, BNP Paribas initiated coverage of the networking technology company’s stock with an “outperform” rating.
Crude oil futures prices fell more than 4% amid reports of potentially easing tensions in the Middle East. The slip in prices pressured oil and gas stocks. Marathon Petroleum (MPC) shares plunged 7.7%, posting the steepest drop of any stock in the S&P 500. Shares of fellow refiner Valero Energy (VLO) closed the session down 5.3%.
Super Micro Computer (SMCI) shares slipped 5.0% on Tuesday, giving back a portion of the strong gains posted by the stock in the previous session after the company reported upbeat delivery figures for its graphics processing units. Challenges to Supermicro include reports emerging last month that the Department of Justice is conducting an investigation into the firm’s accounting practices.
Analysts at KeyBanc downgraded their view on shares of industrial chemical maker Celanese (CE) to “sector weight” from “overweight,” citing softness in the automotive end market and a cautious outlook for the near term. Celanese shares lost 4.6% on Tuesday.