Stocks continued their post-Fed slump Thursday, with all 11 S&P 500 sectors finishing in the red.
While the central bank held rates steady at its September meeting, it left the door open for another rate hike by year's end – news that sent Treasury yields spiking to levels not seen in nearly two decades.
Indeed, the 2-year Treasury yield topped out at 5.202% in intraday trading, its highest mark since mid-2006. And the yield on the 10-year Treasury closed at its loftiest perch since the summer of 2007.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The surging yields turned up the heat on the rate-sensitive tech sector with chipmakers Nvidia (NVDA, -2.9%), Advanced Micro Devices (AMD, -4.2%) and Arm Holdings (ARM, -1.4%) all ending Thursday with noteworthy losses.
Cisco to buy cybersecurity firm Splunk
One tech stock that went against the grain was Splunk (SPLK). Shares surged 20.8% on news that Cisco Systems (CSCO) will purchase the cybersecurity software firm for $28 billion in cash, making this the networking equipment specialist's biggest acquisition to date. The blue chip stock, on the other hand, slumped 3.9%.
"The new $28 billion bid is a 40% increase from just 18 months ago [when Cisco offered to buy Splunk in February 2022 for $20 billion], which both shows the operational efficiencies that Splunk has created under their new CEO Gary Steele," says Third Bridge analyst Joseph Brunetto. "The acquisition also aligns with Cisco's M&A strategy to bolster their cybersecurity offering."
FedEx stock pops after earnings
FedEx (FDX) was another stock that traded higher, adding 4.5% after the logistics giant disclosed earnings. In its fiscal first quarter, FedEx reported higher-than-expected earnings of $4.55 per share on in-line revenue of $21.7 billion. The company also lifted its full-year earnings forecast.
"For now, FDX is combating waning revenues with cost cuts, but it is also planning to help restore pricing," says CFRA Research analyst Stewart Glickman, who reiterated a Hold rating on the industrial stock. Going forward, the analyst believes there is risk involved with the company's planned January rate increases due to a "beleaguered consumer" and "tenuous macro environment."
Also in focus were Fox Corp. (FOX, +3.0%) and News Corp. (NWSA, +1.3), with both stocks gaining ground following reports Rupert Murdoch will step down as chair of the two media outlets in November, and be appointed as chairman emeritus. The media mogul will be replaced by his son, Lachlan Murdoch.
"This leadership transition comes at a challenging time for Fox," says Third Bridge analyst Jamie Lumley. "Following the Dominion Voting Systems settlement earlier this year, the potential liability from the Smartmatic lawsuit still hangs over the company." The analyst adds that questions also remain on how Fox will handle coverage of the 2024 election cycle, "a year which will be flush with political ad dollars."
As for the major indexes, the tech-heavy Nasdaq Composite shed 1.8% to 13,223, the broader S&P 500 fell 1.6% to 4,330, and the blue chip Dow Jones Industrial Average gave back 1.1% to 34,070.
Related content
-
Dow Adds 646 Points, Hits New Highs: Stock Market TodayIt was "boom" for the Dow but "bust" for the Nasdaq following a December Fed meeting that was less hawkish than expected.
-
5 Types of Gifts the IRS Won’t Tax: Even If They’re BigGift Tax Several categories of gifts don’t count toward annual gift tax limits. Here's what you need to know.
-
The 'Scrooge' Strategy: How to Turn Your Old Junk Into a Tax DeductionTax Deductions We break down the IRS rules for non-cash charitable contributions. Plus, here's a handy checklist before you donate to charity this year.
-
Dow Adds 646 Points, Hits New Highs: Stock Market Today
It was "boom" for the Dow but "bust" for the Nasdaq following a December Fed meeting that was less hawkish than expected.
-
Dow Rises 497 Points on December Rate Cut: Stock Market TodayThe basic questions for market participants and policymakers remain the same after a widely expected Fed rate cut.
-
JPMorgan's Drop Drags on the Dow: Stock Market TodaySmall-cap stocks outperformed Tuesday on expectations that the Fed will cut interest rates on Wednesday.
-
Crypto Trends to Watch in 2026Cryptocurrency is still less than 20 years old, but it remains a fast-moving (and also maturing) market. Here are the crypto trends to watch for in 2026.
-
Stocks Bounce Back With Tech-Led Gains: Stock Market TodayEarnings and guidance from tech stocks and an old-school industrial lifted all three main U.S. equity indexes back into positive territory.
-
Dow Slides 427 Points to Open December: Stock Market TodayThe final month of 2025 begins on a negative note after stocks ended November with a startling rally.
-
If You'd Put $1,000 Into Coca-Cola Stock 20 Years Ago, Here's What You'd Have TodayEven with its reliable dividend growth and generous stock buybacks, Coca-Cola has underperformed the broad market in the long term.
-
If You Put $1,000 into Qualcomm Stock 20 Years Ago, Here's What You Would Have TodayQualcomm stock has been a big disappointment for truly long-term investors.
