Oil Topped $110 as Tech Stocks Lost $1 Trillion in a Day

Quick Read

• XOM and CVX each rose about 2.5% as Brent crude topped $110 and tech stocks shed over $1 trillion in a single session.

• Federal forecasters once projected Brent averaging just $89 in Q4 2026 once the Strait of Hormuz reopens, exposing energy stocks to a sharp reversal.

Brent crude, the global oil benchmark, passed $110 a barrel soon after 2:30 p.m. ET on October 16, 2026, its highest level since May. It finished the week just under that mark at $109.86. U.S. crude (WTI) rose 3.5% and closed at $101.41.

In the same session, tech stocks lost more than a trillion dollars in value. The Nasdaq 100 fell 2.5%, and the Philadelphia semiconductor index dropped 3.8%, its eighth straight losing day.

ExxonMobil (NYSE:XOM) rose 2.46% to close at $178.98. That is just below its 52-week high of $179.16 and gives the company a market value of $735.95 billion. Chevron (NYSE:CVX) rose 2.59% to $224.99.

Both moves came from crude prices, since the companies were quiet on October 16. If you own oil and tech stocks together, that one shock raised part of your portfolio and pulled down the rest.

Why One Oil Shock Hit Two Sectors at Once

The war that began when the U.S. and Israel attacked Iran in late February closed the Strait of Hormuz. Before the fighting, nearly 20% of the world’s oil supply passed through it. Ukrainian attacks have also shut down much of Russia’s refining capacity.

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Oil producers’ costs stay mostly fixed, so higher crude prices go mostly to profit. Growth stocks move in the opposite direction. Costlier fuel pushes up inflation, making it more likely the Federal Reserve will raise rates again this year. Growth stocks are priced on those future profits. Higher rates make profits expected years from now worth less in today’s dollars.

Mason Mendez works at Wells Fargo. The global real assets analyst said, “investors also remain concerned about further military escalation in the Middle East.” He added that “the need to rebuild depleted global inventories could create an additional source of demand.”

How Much $110 Oil Adds to Exxon and Chevron

Exxon produced 4.6 million oil-equivalent barrels per day in the first quarter and plans $20 billion of share buybacks in 2026. The conflict has both cost and helped Exxon. That same quarter also took $706 million in losses tied to Middle East supply disruptions.

Chevron’s results show more directly how high oil prices affect earnings. Brent averaged $104 in Chevron’s second quarter, up from $68 a year earlier. Net income reached $12.07 billion, free cash flow was $18.10 billion, and total debt fell by $8.41 billion.

Exxon is expected to report third-quarter results on October 30, though the company has not confirmed the date. The prices it actually received and its production levels will show how much of this oil rally reaches its profits.

Why a Supply Spike Can Unwind Fast

A ceasefire or a reopened strait could quickly reverse the supply shortage. In May, federal forecasters expected Brent to average $89 in the fourth quarter of 2026 once traffic through Hormuz resumed. Prices are now well above that forecast.

Refilling used-up stockpiles could keep demand strong even after oil resumes flowing. Other forces push prices down: high prices cut demand, and the U.S. already announced a Strategic Petroleum Reserve release on March 11.

Energy stocks offset tech losses only while oil drives the selloff, and if tensions suddenly ease, energy shares would fall from near their highs just as tech would likely recover.

What Exxon’s Valuation Assumes About Oil Prices

Exxon is up 51.69% in 2026 and trades at about 26 times earnings, with a 2.34% dividend yield. That price assumes oil stays high, which leaves the shares exposed if crude falls.

Chevron’s numbers look stronger by comparison. It yields 2.89%, and its free cash flow yield is 3.76%, compared with Exxon’s 3.21%. Its U.S. refineries also ran at 97% of capacity, and refining income would help if crude falls but refining profit margins hold.

Chevron’s price of 36 times trailing earnings looks high. Most of that comes from weaker 2025 results. Full-year net income was $12.30 billion, about what Chevron earned in its most recent quarter alone.

That view would be challenged. Exxon’s expected October 30 report would need to show prices and production strong enough to raise the shares above $179.16 and keep them there. If Brent falls back below $100 before that report, concerns about Exxon’s valuation grow.

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