U.S. stocks slipped on Tuesday as oil prices tumbled to 2021 lows, leaving the S&P 500 just below its recent peak.
Market Overview
The S&P 500 fell 0.2% to 6,800.26, the Dow Jones Industrial Average dropped 302.30 points to 48,114.26, and the Nasdaq composite rose 54.05 points to 23,111.46.
Economic Data
Mixed economic reports offered little change in expectations that the Federal Reserve may cut rates further in 2026. A report said the U.S. unemployment rate was at its worst level since 2021, while employers added more jobs last month than economists expected. Another report noted an underlying measure of strength for revenue at U.S. retailers grew more in October than expected. A separate preliminary report from S&P Global said price pressures are rising sharply, with average selling prices for businesses climbing at one of the fastest rates since mid‑2022 and overall business activity slowing to its weakest level since June. “Higher prices are again being widely blamed on tariffs, with an initial impact on manufacturing now increasingly spilling over to services to broaden the affordability problem,” said Chris Williamson, chief business economist at S&P Global Market Intelligence.
Oil Prices
Oil prices slid to their lowest level since 2021. U.S. crude settled at $55.27 per barrel and Brent at $58.92. The decline weighed on energy stocks: APA fell 5.2%, Marathon Petroleum sank 4.7%, and Halliburton dropped 4.3%.
AI and Corporate Moves
Artificial‑intelligence technology stocks were mixed. Oracle rose 2%, and Broadcom added 0.4%, both having dropped sharply last week despite stronger quarterly profits. CoreWeave, which rents out AI chips, fell 3.9%. Pfizer fell 3.4% after giving a 2026 profit forecast below some analysts’ expectations; its revenue forecast was close to expectations. Kraft Heinz added 0.7% after announcing that former Kellanova CEO Steve Cahillane will join as CEO on Jan. 1, ahead of a split expected in the second half of 2026.
International Markets
Indices fell across much of Europe and Asia. Japan’s Nikkei 225 dropped 1.6% ahead of an expected Bank of Japan rate hike. South Korea’s Kospi fell 2.2%, Hong Kong’s index slid 1.5%, and Shanghai’s index fell 1.1%.
Bond Market
The yield on the 10‑year Treasury fell to 4.14% from 4.18% late Monday.
Key Takeaways
- S&P 500 slipped 0.2% to 6,800.26, while Dow fell 302.30 points.
- Oil prices hit 2021 lows, dragging energy stocks down.
- AI and corporate stocks showed mixed moves amid unchanged Fed rate expectations.
Morgan J. Carter is a Texas-based journalist covering breaking news, local government, public safety, and community developments across Austin. With more than six years of reporting experience, Morgan focuses on delivering accurate, clear, and timely stories that reflect the fast-moving pulse of the city.
At newsofaustin.com, Morgan reports on everything from severe weather alerts and traffic updates to city council decisions, crime reports, and the issues shaping daily life in Austin. Known for reliable fact-checking and a strong commitment to public-interest journalism, Morgan brings readers the information they need to stay informed and engaged.
When not tracking a developing story, Morgan enjoys exploring Austin’s neighborhoods, attending local events, and connecting with residents to share the voices and experiences that define the community.
