Risk aversion is shaping another tough day for Wall Street, with stocks trading in the red as investors await the presidential debate between Vice President Kamala Harris and former President Donald Trump, scheduled at 9 p.m. ET.
Energy and financial sectors are witnessing deeper losses, sharply underperforming the rest of the market.
In the latest monthly report, OPEC revised its global oil demand growth forecasts downward, now expecting 2024 oil demand to increase by 2.03 million barrels per day (bpd), down from the previous estimate of 2.1 million bpd. For 2025, OPEC has trimmed global demand growth forecast to 1.74 million bpd, compared to the earlier projection of 1.78 million bpd.
On the regulatory front, Federal Reserve Board Vice Chair for Supervision Michael Barr announced changes to the BASEL III and GSIB (Global Systemically Important Banks) surcharge proposals, which will now increase capital requirements for the largest banks by 9%, down from the original plan of 19%. Barr also clarified that banks with assets under $250 billion would largely be exempt from these heightened requirements.
Despite this capital relief, financial stocks sank across the board. The financial sector gauge fell 2%, with JPMorgan Chase & Co. (NYSE:JPM) dropping 7%. The SPDR Regional Banking ETF (NYSE:KRE) declined 2.6%, reflecting ongoing pressure even on the regional bank industry which is largely exempted from the regulation.
Elsewhere, Treasuries continued to rally. The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) rose 0.6%, hitting its highest levels since late July 2023.
The Japanese yen gained 0.5%, while both gold and Bitcoin (CRYPTO: BTC) traded broadly flat, reflecting a mixed sentiment in alternative assets.
Tuesday's Performance In Major U.S. Indices, ETFs
Major Indices
Price
1-day %chg
Nasdaq 100
18,667.20
0.0%
S&P 500
5,458.25
-0.2%
Dow Jones
40,509.61
-0.8%
Russell 2000
2,081.31
-1.0%
Updated at 12:50 p.m. ET
According to Benzinga Pro data:
The SPDR S&P 500 ETF Trust (NYSE:SPY) was 0.2% lower to $545.43.
The SPDR Dow Jones Industrial Average (NYSE:DIA) fell 0.6% to $406.46.
The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) inched 0.1% higher to $454.91.
The iShares Russell 2000 ETF (NYSE:IWM) fell 1% to $206.36.
The Real Estate Select Sector SPDR Fund (NYSE:XLRE) outperformed, up 0.8%. The EnergySelect Sector SPDR Fund (NYSE:XLE) and the FinancialsSelect Sector SPDR Fund (NYSE:XLF) were the laggards, down 2.1% and 1.9%, respectively.
Tuesday's Stock Movers
Worst-performing energy stocks were Diamondback Energy, Inc. (NYSE:FANG), APA Corporation (NYSE:APA) and Exxon Mobil Corporation (NYSE:XOM), down 5.1%, 5% and 3.4%, respectively.
Hewlett Packard Enterprise Company (NYSE:HPE) fell over 7% as the company announced it has commenced a public offering of $1.35 billion (27 million shares) of Series C mandatory convertible preferred stock.
Oracle Corp. (NYSE:ORCL) rallied 12% on the back of stronger-than-expected quarterly results.
Other stocks reacting to earnings were Rubrik Inc. (NYSE:RBRK) down 5.8% and Academy Sports and Outdoors Inc. (NASDAQ:ASO) up 5.68%.
GameStop Corp. (NYSE:GME) will report earnings after the close.
Read Also:
Stocks Had Worst Start To September Nearly Ever – Here's Why
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会（ASIC）の管理を受けております（AFSL No. 224663）。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会（ASIC）の管理を受けております（AFSL No. 224663）。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。
On the regulatory front, Federal Reserve Board Vice Chair for Supervision 
規制上の動きとして、連邦準備制度理事会の監督担当副議長であるマイケル・バーは、BASEL IIIおよびGSIb（グローバル・システム的重要銀行）サーチャージ提案に関する変更を発表しました。これにより、最大の銀行の資本要件が9%増加することとなります（元の計画では19％であった）。バーはまた、資産が2500億ドル未満の銀行は、これらの強化要件からほとんどの免除を受けるだろうと明らかにしました。