S&P 500 cuts losses as tech jump offsets energy, financials weakness

Investing.com -- US stocks fell Tuesday, weighed down by slump in energy and financials a day ahead of an important inflation report.

At 1:56 p.m. EST (1646 GMT), the benchmark S&P 500 fell 0.2%, the tech-heavy Nasdaq Composite rose 0.03%, and the 30-stock Dow Jones Industrial Average fell 270 points or 0.7%.

The mostly weaker session for stocks comes ahead of the consumer price index data for August due Wednesday. Energy stocks follow oil prices lower

Energy stocks, down 3%, led the broader-market decline, pressured by a more than 4% slump in oil prices amid rising oversupply concerns as the demand outlook turns gloomy. 

OPEC said now now expects demand to increase by roughly 2 million barrels per day this year, down from its prior projection of 2.1 million in August. It was the second consecutive month that the producer group has made a downward adjustment to the forecast.

As well as the weaker fundamentals, adverse weather also weighed after a slew of oil companies, including Exxon Mobil (NYSE:XOM ), Shell (LON:SHEL ) and Chevron (NYSE:CVX ), said they are moving to halt production and refining activities in the Gulf of Mexico due to Tropical Storm Francine.

The storm is expected to strengthen in the coming days, according to the National Hurricane Center. Financials slip as Wall Street banks signal cautioned 

Wall Street banks including Goldman Sachs and JPMorgan led the broader financials sector lower after signaling a cautious outlook.

JPMorgan Chase & Co (NYSE:JPM ) President Daniel Pinto said analysts forecasts for next year’s net interest income were too optimistic, sending the stock down 7%. 

Goldman Sachs Group Inc (NYSE:GS ) Group Inc.’s chief David Solomon on Monday warned that the bank's Q3 trading revenue could fall 10% compared to same period a year earlier. Apple shares lower after EU top court ruling, iPhone 16 reveal

Shares in Apple (NASDAQ:AAPL ) fell 0.7% after the  European Court of Justice ruled on Tuesday that Apple must repay 13 billion euros in back taxes, overturning an earlier decision that had found in favor of the company.

The news comes a day after the Cupertino-based group unveiled its iPhone 16 on Monday,  which is due to go on sale on Sept. 20 with pre-orders available this Friday, to help reinvigorate flagging sales of the device.

Analysts said the new iPhones and AI features largely met expectations set by Apple’s earlier reveal of its plans for a push into AI, called “Apple Intelligence.” Oracle shares jump on guidance, Amazon (NASDAQ:AMZN ) cloud deal; JetBlue shakes up board amid activist pressure

Shares in Oracle (NYSE:ORCL ) rose sharply before the opening bell after the group reported better-than-expected fiscal first-quarter results and second quarter guidance, driven by strong demand for its cloud business.

The company sees fiscal Q2 earnings per share in a range of $1.42 to $1.46, well above estimates for EPS of $1.33.

JetBlue Airways Corp (NASDAQ:JBLU ) cut losses to trade about flat after the airline announced that executive chairman and former chief executive Gary Kelly would retire next year as part of board shake-up following pressure from  from activist investor Elliott Investment Management.

(Scott Kanowsky contributed to this report.)

Source: Investing.com