Oil eases and most stocks rise, but big tech lags

The story

Yahoo Finance reported, citing Investing.com, that Qatar and Pakistan have floated a plan to restart U.S.-Iran talks. That report is unconfirmed, and oil fell only a little. Still, stocks seemed to like it. The Dow rose about 1%, and the Russell 2000 index of smaller companies gained about 1.7%.

Big tech sat this one out. Bloomberg reported that worries about AI spending came back after a South Korean data-center company, Elice, had a rough debut on the stock market. Meta, Alphabet and Apple all fell. A few giant companies make up a big share of the S&P 500, so it rose only about 0.3%. The Nasdaq finished flat.

Lower oil also helped bonds. Bloomberg reported that traders cut their bets on Fed rate hikes as oil pulled back. The interest rate on the 10-year Treasury slipped to about 5.12%. Health care led the market, up about 2.4%. Eli Lilly jumped midday, and Yahoo Finance reported RBC upgraded the sector late in the day. Real estate and utilities also gained, probably because those stocks often rise when rates fall.

Also today

• The Canadian dollar firmed after Alberta voters rejected separation, Bloomberg reported.
• GM was the S&P 500's worst performer after it gave a narrower profit outlook, even with a $20 billion stock buyback.
• Heating oil futures barely moved, at about $4.72 a gallon, even as gasoline futures slipped about 1.8%. That means no real relief yet for Mainers filling tanks for winter.

Storylines

• Iran conflict and oil: Hopes for talks trimmed oil, but U.S. oil is still near $98 a barrel and global oil near $109.
• AI boom doubts: The Elice flop and worries about tech debt kept the giant tech stocks down.
• Fed hike bets and high yields: Softer oil let rates ease, but the 10-year is still above 5%.
• Earnings season: Netflix and Tesla report after the closing bell, and GM's outlook disappointed.

Temperature

Neutral · calm: The market's fear gauge fell and gains were broad, but big tech lagged and the moves were modest.