Stock Market Update

[BRIEFING.COM] The major averages remain under pressure at midday as rising oil prices and elevated Treasury yields weigh broadly on equities. The S&P 500 (-0.4%), Nasdaq Composite (-0.7%), and DJIA (-0.8%) trade near their session lows, with eight of the 11 S&P 500 sectors in negative territory.

Crude oil remains a central headwind, with WTI up $4.61 (+4.5%) to $106.01 per barrel, moving back above its earlier highs and to its highest level since late May. Oil is now nearly $20 per barrel higher in September as the conflict with Iran drags on. The surge has propelled the energy sector (+2.1%) well ahead of the rest of the market, extending the group's standout performance in 2026.

Treasury yields are adding to the difficult backdrop, with the 10-year note yield (4.99%) hovering near 5.0%. The combination of higher oil prices and elevated rates has contributed to weak participation. The consumer discretionary sector (-1.4%) is the weakest performer amid persistent concerns about inflation pressuring consumer-company profit margins. Rate-sensitive homebuilders are also struggling as Treasury yields remain elevated, while Chipotle Mexican Grill (CMG 34.76, -2.27, -6.13%) and Carvana (CVNA 67.74, -3.13, -4.42%) are among the group's more pronounced individual laggards.

Mega-cap weakness is contributing additional pressure, with the Vanguard Mega Cap Growth ETF down 0.6%. The communication services sector (-1.2%) is among the larger decliners, while the information technology sector (-0.2%) holds a more modest loss as semiconductor stocks attempt to stabilize following yesterday's sharp retreat. The PHLX Semiconductor Index (+0.2%) remains positive but has surrendered the bulk of an earlier gain that approached 2.0%.

The financials sector (-0.8%) also remains under pressure. Coinbase Global (COIN 179.71, -11.74, -6.13%) and Robinhood Markets (HOOD 111.64, -2.69, -2.35%) are notable laggards as Bitcoin gives back yesterday's gain, while major banking names remain weak after Bank of America (BAC 59.05, -0.42, -0.70%) said it expects a weaker third quarter.

There are a few pockets of relative strength outside the energy sector. The materials sector (+0.1%) has edged into positive territory, while the health care sector is unchanged after reclaiming its flat line.

Corporate headlines have been relatively quiet and have not had much influence on the broader market, leaving macro considerations firmly in control of today's action. Some caution ahead of tomorrow's FOMC decision could also be contributing to the subdued tone, with the CME FedWatch Tool currently assigning a 92.5% probability to a 25-basis-point rate hike. For now, the combination of crude oil above $106 per barrel, the 10-year yield near 5.0%, and uncertainty ahead of the FOMC is keeping buying interest limited.

Reviewing today's data:

• September Empire State Manufacturing 7.6 (Briefing.com consensus 14.1); Prior 20.6