Highlights
Major stock indexes faded a bit Thursday with oil prices higher and the momentum AI chip trade facing corrective pressures. At 1 pm ET, the Dow Jones industrial average was off 0.6 percent while the S&P 500 was down 0.2 percent, and the Nasdaq was flat. Bond yields and the dollar rose.
Risk appetite suffered from somewhat hawkish sounding views attributed to Fed Chair Kevin Warsh and disappointment that a proposed deal to reopen the Strait of Hormuz might not be as good as investors hoped. A story in the Financial Times said the Fed chair would be prepared to raise rates in September if inflation continues to come in hot. Markets also reacted poorly as oil prices rebounded on reports that the deal under discussion to reopen the Strait would ban US and Israeli shipping.