CBN News, October 13, 2026, 07:03:17 - Listen to the news
Author: Fan Zhijing Editor-in-Chief: Ge Weier
*The three major stock indices showed divergence, with the Dow Jones rising nearly 200 points;
Federal Reserve Chairman of Cleveland, Harker, calls again for an interest rate hike as soon as possible;
*Gold and silver prices are under pressure and declining.*
On Monday, U.S. stocks saw mixed gains and losses. News of Russia and Ukraine attacking each other's energy facilities sparked a surge in crude oil prices, while tech stocks came under pressure. Investors are awaiting the start of the third-quarter earnings season in the banking sector and also waiting for a series of economic data releases this week.
As of the close, the Dow Jones Industrial Average rose by 195.60 points, or 0.38%, to 51,850.55 points; the Nasdaq Composite Index fell by 0.44%, to 27,245.90 points; and the S&P 500 Index declined by 0.06%, to 7,807.24 points.
【Popular Stocks Performance】
Star tech stocks saw mixed gains and losses. After Meta launched two cutting-edge artificial intelligence models, its stock price soared by over 3%. After Microsoft announced a large-scale deployment plan for its self-developed AI chips, its market value once again exceeded $4 trillion after a year. Amazon, NVIDIA, and Tesla all fell by more than 1%.
The Philadelphia Semiconductor Index closed down 2.7%, hitting a three-week low during the session. ARM fell 4.15%, and Intel declined 3.2%.
Storage chip stocks are under pressure, with Sandisk falling nearly 6%; SK Hynix and Micron Technologies stocks dropping more than 4%, and Western Digital falling 4.02%.
The optical communication sector suffered a heavy blow, with Lumentum falling by 9.78%, and Coherent as well as Corning losing more than 6%.
Starbucks stated that it would not acquire Chipotle Mexican Grill, resulting in a 3.8% decline in the latter's stock price, while Starbucks' stock price rose by 1.7%.
The NASDAQ China Golden Dragon Index fell by 0.38%, Baidu and JD.com dropped by more than 1%, Alibaba and Pinduoduo fell by 0.53%, while NetEase rose by 0.94%. Due to the news that its parent company, Yixin, has been placed under investigation, Yiren Zhike plummeted by 44%.
【Market Overview】
The situation in the Middle East has escalated once again. According to CCTV News, on the 12th local time, Yahya Sarea, a military spokesman for the Houthi rebels in Yemen, issued a statement claiming that in the evening of that day, the Houthi rebels launched a ballistic missile attack on King Khalid International Airport in Riyadh, the capital of Saudi Arabia, and claimed that the missile hit its target accurately. The Houthi rebels once again warned airlines around the world, as well as experts, employees, staff, and passengers from various countries, not to fly to airports within Saudi territory, stating that these airports are unsafe, with the exception of the airports and airspace in Mecca and Medina.
Recently released data shows that inflation growth is lower than expected, and employment growth has weakened. As a result, the market has lowered its bets on interest rate hikes in the short term. Later this week, data on U.S. consumer inflation, producer inflation, and retail sales will be released, and the market will be closely watching these figures.
Cleveland Fed Chair Beth Harker stated on Monday that in order to combat inflation, the Federal Reserve should "shift to a more restrictive monetary policy stance more quickly." She believes that inflation has become more widespread and has begun to affect corporate pricing decisions. The Federal Reserve monitoring tool from the Chicago Mercantile Exchange shows that traders are pricing in a 22% probability of a Fed interest rate hike this month, up from 17.7% last Friday.
Earlier this month, due to concerns about inflation stickiness driven by high energy prices and market expectations that policy officials would maintain a hawkish stance, U.S. Treasury yields once soared to a 24-year high. Monday coincided with Columbus Day, and the U.S. Treasury market was closed.
Tim Griski, a senior portfolio strategist at Engles-Snyder, stated, "There are several important economic reports to come this week." He noted that the lack of a clear direction in the bond market also keeps investors cautious. "The market is also waiting for financial reports, which are very crucial. On Tuesday, the financial reports of four major banks will have a significant impact."
Investors are also paying attention to corporate financial reports. LSEG IBES data shows that earnings of the S&P 500 components are expected to grow significantly by 30.6% in the third quarter. Major U.S. banks such as Goldman Sachs, Citibank, and JPMorgan Chase will kick off the earnings season on Tuesday.
Bellwether Wealth President and Chief Investment Officer Clark Berling stated: "During the financial reporting season, there are several key aspects that need to be focused on: how companies deploy AI and profit from it; whether companies can maintain or increase their pricing power; and how they deal with the soaring financing costs – challenges that companies did not have to face a year ago."
【Large-Cap Performance】
International oil prices are rising, and Ukrainian President Zelensky claims that Russia has attacked six energy facilities within Ukraine. Additionally, according to two European officials, the Trump administration has warned Ukraine and its European allies that if Kiev does not cease its heavy strikes on Russian energy facilities, the United States may suspend intelligence sharing, and European plans to purchase U.S.-made weapons for Ukraine will also be affected.
New York Mercantile Exchange (NYMEX) light crude oil futures for November delivery rose by $1.89 to close at $93.74 per barrel, an increase of 2.06%; London Brent crude oil futures for December delivery rose by $1.93 to close at $106.65 per barrel, an increase of 1.84%.
The precious metals market declined, with the COMEX gold futures for October delivery on the New York Mercantile Exchange falling by 0.60% to $4,165.80 per ounce, and the COMEX silver futures falling by 0.87% to $60.14 per ounce.
