Closing Bell: Stocks Slump Tuesday as Oil Hits Three-Month High, Brent Near $100

Stocks slumped to begin the week on inflation fears as the international Brent oil futures contract hovered near $99 per barrel, while the U.S. benchmark was near $94. 

The Dow Jones Industrial Average ($DJI) shaved about 628 points to close down 1.18%, and the S&P 500 (SPX) fell 0.58%. The Russell 2000 (RUT) was down 0.52%. 

Technology held its own, with the tech-focused Nasdaq 100 (/NDX) down only 0.12%, while the outlier PHLX Semiconductor Sector Index (SOX) rose 1.30%.  

U.S. oil prices are up more than 60% this year. The concern for U.S. markets, with next week's Federal Reserve decision on potentially hiking interest rates, is the impact of oil prices on U.S. inflation as conflict in the Middle East widens. Weekend U.S.-Iran attacks were followed by late Tuesday reports that Iran was targeting U.S. Navy ships with missiles. See Glickman: $100 Crude Oil 'Speed Bump' to Steeper Prices if U.S-Iran War Worsens.  

Stock news of note from Tuesday's market:  

Qualcomm (QCOM) gained more than 3% after issuing warrants to Amazon (AMZN) to acquire $4 billion in the company’s stock as part of an A.I. infrastructure deal. Qualcomm said the two companies are working together on “multiple generations of customized silicon” for the Amazon Web Services (AWS) infrastructure buildout. See QCOM & AMZN Ink Multi-Generational AI Partnership Amid Rabid Compute Demand 

Intel (INTC) rallied 9% to $104.47 after Northland upgraded the stock to “Outperform” with a $120 price target. Palantir (PLTR) named Nebius (NBIS) as its preferred sovereign AI infrastructure partner. Palantir shares fell 2.31%, while Nebius stock jumped 7.73%. See Why Semiconductor Volatility Diverges From the Index | Market On Close 

Shares of quantum computing firms moved higher after the U.S. government finalized funding awards.  D-Wave Quantum (QBTS) jumped 6.57%, Rigetti Computing (RGTI) rose 4.01%, and Quantinuum (QNT) was up 1.65% after the U.S. Department of Commerce on Tuesday said it would grant each $100 million in CHIPS and Science Act funding, according to The Wall Street Journal and other reports, in exchange for a minority, non-controlling equity stake in each enterprise. See Pasqal CEO on Scaling Quantum Computing & Saudi Aramco Partnership and Quantum Computing Finding Footing as Trade Gains Momentum | Trading 360. 

Novartis (NVS) shares slumped nearly 14% Tuesday after announcing its third recent clinical setback, clouding its drug pipeline. The latest: Phase 3 results showed its del-desiran drug led to no significant improvement in patients. Novartis paid $12 billion for Avidity Biosciences; the deal closed in February, and Avidity created the drug. Separately, Amgen (AMGN) fell more than 10%, while Stryker (SYK) declined 8.81%. See Tuesday's First Moves: BE Joining SPX, AMGN & NVS Fall, PANW Downgrade  

Corning (GLW) rose 7.56% after announcing a supply deal with Verizon (VZ) to support the telecommunications company’s broadband expansion and next-generation AI infrastructure. Corning will provide 80 million miles of fiber for the multi-billion-dollar deal, according to reports.  

For economic and earnings calendars for the week, see the Sunday week ahead article, Week Ahead: Key Inflation Data, Apple Reveal in Holiday-Shortened Week. 

Marley Kayden, Angrej Singh, and Tom White contributed to this article 

This material is intended for informational purposes only and should not be considered a personalized recommendation or investment advice. Investors should review investment strategies for their own particular situations before making any decisions.

Schwab Network is brought to you by Charles Schwab Media Productions Company (“CSMPC”). CSMPC is a subsidiary of The Charles Schwab Corporation and is not a financial advisor, registered investment advisor, broker-dealer, or futures commission merchant.

Charles Schwab Media Productions Company and all third parties mentioned are separate and unaffiliated, and are not responsible for one another's policies, services or opinions.

Data contained herein is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. All events and times listed are subject to change without notice.