Both the S&P 500 ETF (SPY) and the Nasdaq 100 ETF (QQQ) closed lower on Thursday as rising oil prices lifted rate hike odds.
News That Moved the Stock Market Today
- Brent crude (BZ) rose over 4% on news that Iran and Oman had reached a Strait of Hormuz agreement “in principle.” Iranian Deputy Foreign Minister Kazem Gharibabadi said the agreement will not involve a complete reopening of the waterway and that the U.S. is not involved in the arrangement. Furthermore, the deal must receive final approval from Iranian Supreme Leader Mojtaba Khamenei.
- Fed Chair Kevin Warsh is open to a rate hike next month if inflation continues to rise, people familiar with his thinking told the Financial Times. Inflation has remained above the Fed’s target of 2% for over five years.
- The odds of a 25-bps rate hike at the September 16 Federal Open Market Committee (FOMC) meeting are at 56.5%, up from 54.4% a day ago.
- The Bureau of Labor Statistics (BLS) will publish July’s jobs report tomorrow morning. The report includes nonfarm payrolls and the unemployment rate.
- Western Digital (WDC) plummeted after its second-quarter earnings failed to resonate with investors. That came even as the company beat on both revenue and adjusted EPS.
- Datadog (DDOG) also closed lower after warning that lower usage from a large customer could negatively impact growth. Meanwhile, several analysts raised or maintained their DDOG price targets.
- Over 900 million shares of SpaceX (SPCX), or about 7% of shares outstanding, became available for trading today as part of the space exploration firm’s IPO lockup expiration. Another 319 million shares will unlock on August 20.