Brent Jumps to $80 on Geopolitical Risks – US Market Wrap

A selloff in some of the world’s largest technology companies dragged down stocks, extending a slide that was also driven by geopolitical angst and bets the Federal Reserve will opt for a smaller rate cut next month.

The S&P 500 fell 1% after notching a four-week winning run. Alphabet sank 2.4% as a judge ruled it must lift restrictions that prevent developers from setting up rival marketplaces that compete with its Google Play Store. Brent crude jumped above $80 a barrel amid mounting tensions in the Middle East. In the wake of Friday’s solid jobs data, Treasuries continued to drop – with the 10-year yield topping 4%.

With the exception of energy shares, every major sector in the S&P 500 dropped Monday. A gauge of the “Magnificent Seven” megacaps slipped 1.9%. Amazon sank 3.1% after Wells Fargo downgraded the shares amid concerns over margin trends into next year. NVIDIA was the only bright spot in the group.

The VIX jumped to a two- month high. Treasury 10-year yields rose six basis points to 4.02%. West Texas Intermediate crude climbed 3.9% to $77.30 a barrel.