IBM's Fall Drags Down Software Sector | Closing Bell

Summary

The Closing Bell hosts recap a modestly positive US equity session led by tech and chipmakers, while IBM's historic drop dragged software. Geopolitical tensions kept oil elevated and bond yields fell on a cooler CPI, with bank earnings and notable movers like AMD and Lucid in focus.

• Major US indices closed higher with Nasdaq 100 up 1.1%, Dow lagging flat.
• IBM suffered its worst one-day drop since at least 1968 after preliminary sales missed expectations due to customer spending shifting toward chips.
• Financials rallied as JP Morgan, Goldman Sachs and BofA reported strong equities trading results.
• Semiconductor index rebounded 2.5%, with AMD up on raised price targets amid AI data-center demand.
• Oil prices stayed elevated around $85 Brent on renewed US military strikes on Iran and Strait of Hormuz concerns.
• Treasury yields fell, with the two-year down ~10bps, as markets dialed back near-term Fed rate-hike expectations.
• Lucid Group plunged 16% on restructuring news; Yum Brands fell on an E. coli/parasite outbreak investigation at Taco Bell.