The S&P 500 Index is down 0.35% as of today, with the Dow Jones Industrial Average falling 0.19% and the Nasdaq 100 Index declining 0.45%. Rising bond yields, particularly the 10-year T-note yield which reached a 15-month high of 4.66%, along with elevated crude oil prices, are contributing to a risk-off sentiment in the markets. This downturn follows a recent rally in technology stocks that drove both the S&P 500 and Nasdaq 100 to record highs last week.
WTI crude oil prices are experiencing volatility, recently declining after President Trump canceled a planned military strike on Iran. The International Energy Agency reported that global oil inventories have dropped by approximately 4 million barrels per day, suggesting a continued undersupply in the market. Goldman Sachs estimates that up to 1 billion barrels could be drawn down from global stockpiles by June due to these geopolitical tensions.
In corporate news, 83% of the 454 S&P 500 companies that have reported Q1 earnings have exceeded estimates. Despite this, Q1 earnings overall are projected to increase only 12% year-over-year, with a more modest rise of approximately 3% outside the technology sector, marking the weakest growth in two years.
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