Oil Prices Keep Markets on Edge 06/08/2026
Market Wrap
US stocks finished mixed on Wednesday as investors balanced another wave of corporate earnings against profit-taking in technology shares. The Dow Jones Industrial Average rose 263 points, or 0.5%, to a record close, extending its winning streak to five sessions. The S&P 500 slipped 0.2%, ending a four-day rally, while the Nasdaq Composite fell 0.8%.
Technology stocks initially moved higher after Elon Musk said on SpaceX's earnings call that the company would rely exclusively on Nvidia (NVDA) chips for its AI infrastructure, lifting Nvidia more than 3%. The rally faded later in the session as investors locked in gains, with Advanced Micro Devices (AMD) and Alphabet (GOOGL) among the notable laggards.
Solar stocks also came under heavy pressure after SolarEdge Technologies (SEDG) warned of broader industry weakness, sending the Invesco Solar ETF (TAN) down nearly 4%.
Market sentiment continued to benefit from easing Middle East tensions and lower oil prices, although inflation remained a key concern after Federal Reserve Governor Lisa Cook said she was prepared to support another rate hike if disinflation stalled.
Attention now turns to another busy earnings session, with Warner Bros. Discovery (WBD) reporting before the opening bell, followed by Airbnb (ABNB) and Lyft (LYFT) after the close. Investors will also monitor weekly jobless claims ahead of Friday's closely watched US payrolls report.
Options Fueled the Rally
The S&P 500's roughly 6% rally over the past five trading sessions may have been driven more by options-market positioning than by a meaningful improvement in market fundamentals.
Ahead of the Federal Reserve meeting, market makers were positioned with negative gamma, a setup that tends to amplify market moves as dealers buy into rising prices. At the same time, falling volatility and heavy demand for bullish call options added further momentum, helping fuel the sharp rebound.
That backdrop has now changed. Dealer positioning has shifted back into positive gamma, which typically dampens volatility by encouraging market makers to sell into rallies and buy into declines. Options positioning also suggests the S&P 500 faces significant resistance near the 7,800 level.
While positive gamma could help keep volatility contained in the near term, analysts caution that the technical tailwinds behind the recent advance are fading. Unless the index breaks decisively above resistance, the market could enter a period of consolidation or experience a modest pullback.
Stocks on the Move
- AppLovin (APP): Shares plunged 16% after third-quarter guidance fell short of Wall Street expectations. The company forecast adjusted EBITDA of $1.71 billion to $1.74 billion, while second-quarter revenue also narrowly missed estimates.
- DoorDash (DASH): Shares slipped nearly 2% after quarterly earnings matched expectations. Revenue of $4.45 billion came in ahead of the $4.34 billion consensus.
- Zillow (ZG): Shares fell 7% despite reporting stronger-than-expected earnings and revenue. Investors also weighed the expanded role of CFO Jeremy Hofmann, who was named chief operating officer, and the company’s plan to cut about 500 jobs.
- Western Digital (WDC): Shares sank more than 10% after current-quarter guidance failed to impress investors. The company projected adjusted earnings of about $4 per share on revenue of roughly $4.1 billion.
- Sandisk (SNDK): Shares dropped 5% as first-quarter revenue guidance disappointed, overshadowing better-than-expected fourth-quarter earnings and sales.
- Salesforce (CRM): Shares fell nearly 5% in extended trading after the company named former Oracle executive Miguel Milano as chief operating officer. The stock remains down more than 27% this year.
Watchlist: APP, SNDK, WDC, CRM, DASH, COP, XYZ, DDOG, CEG
Key Economic Events Today
Economic Data (EST)
- 08:30 AM — USD Unemployment Claims
- 10:00 AM — USD Final Wholesale Inventories
- 05:30 PM — USD FOC Member Musalem Speaks
Earnings
Before Market Open: ConocoPhillips (COP), Howmet Aerospace (HWM), Datadog (DDOG), Constellation Energy (CEG), Sempra (SRE)
After Market Close: Airbnb (ABNB), Cloudflare (NET), Monster Beverage (MNST)
