Stock Market Midday, Oct. 23: Energy Surges on Oil Price Spike, Cybersecurity Stocks Gain
As of 11:40 AM ET, the Nasdaq Composite (^IXIC +0.06%) is up 0.26% to 26,075 as it struggles to stabilize following yesterday’s tech-led sell-off, while the S&P 500 (^GSPC -0.29%) has dipped 0.15% to 7,652 and the Dow Jones Industrial Average (^DJI -1.02%) is trading down 0.98% to 52,350.
Index
S&P 500 Index
Today’s Change
(-0.29%) -22.14
Index Level
7,641.29
Key Data Points
Day’s Range
7,612.07 – 7,660.15
52wk Range
6,316.91 – 7,844.52
Gold fell 0.72% to $3,995.18 per ounce, and the 10-Year Treasury yield is up +0.046% to 4.99%. Energy and utilities are this morning’s top-performing sectors, while industrial stocks are the session’s biggest laggards.
Today’s biggest moves
Crown Castle jumped 12% after reports that SpaceX is seeking cell tower sites for a mobile carrier service, a development that is simultaneously pressuring shares in AT&T and other mobile carriers. Meanwhile, Palo Alto Networks is climbing after Deutsche Bank named it one of three companies well-positioned to benefit from rising AI usage. Bloom Energy plummeted despite better-than-expected earnings yesterday.
What this means for investors
Artificial intelligence (AI) fears may not have receded, but it is soaring oil prices that are dominating headlines this morning. WTI crude rose 3.6% to $117 a barrel today, the highest it has been since April. Inflation concerns are weighing on markets, particularly as a further interest rate hike could happen when the Federal Reserve meet next week. As such, investor caution is likely to prevail in the near term.
Palo Alto wasn’t the only cybersecurity stock to buck the trend this week. CrowdStrike and Okta also gained as markets consider potential AI-powered security threats. On Wednesday, a software vulnerability emerged that could impact 70% of websites worldwide, and that’s sparked renewed analyst focus on the firms that can offer protection.
Emma Newbery has positions in CrowdStrike. The Motley Fool has positions in and recommends Bloom Energy, CrowdStrike, Crown Castle, Meta Platforms, and Okta. The Motley Fool recommends Palo Alto Networks. The Motley Fool has a disclosure policy.