Dow Slides Nearly 2 Percent As Small Caps Lag And Yields Rise

Stocks closed a volatile week lower, with the Dow Jones Industrial Average dropping 1.93% to 50,826.17 and the Russell 2000 falling 1.16% to 2,804.63, according to a market commentary from Stock Preachers. The broader market faced pressure as the 10-year Treasury yield climbed 6 basis points to 5.24%, even as the VIX remained contained near 17.

The S&P 500 slipped 1.25% to 7,646.79 and the Nasdaq Composite eased 0.90% to 26,825.83 over the four-session period. Small-cap performance lagged large caps, with the Russell 2000's RSI14 indicator at 32, signaling the gauge is approaching oversold territory. Volatility metrics showed modest increases; the VIX closed at 16.96, up 0.89 points on the week, while the Nasdaq-100 volatility gauge (VXN) rose 2.11 points to 22.98.

Commodity prices were mixed during the week. Gold held near $4,191.20 an ounce, up 0.55%, while silver slipped 0.65% to $60.83. WTI crude oil eased 0.49% to $92.15 a barrel, and natural gas fell 1.23% to $2.96. The euro slid 1.34% against the dollar to 1.12.

Corporate earnings provided a mixed picture of financial health for the final quarter of the year. McCormick & Company reported third-quarter net sales up 17.4%, with adjusted earnings per share at $0.86 compared to $0.85 in the year-ago period. Chairman and CEO Brendan M. Foley stated that the results demonstrate the resilience of the company's flavor-focused business model.

Conagra Brands reported first-quarter fiscal 2027 net sales down 1.4%, with adjusted earnings per share increasing 5.1% to $0.41. The company reaffirmed its fiscal 2027 guidance, projecting organic net sales change between negative 3% and negative 1%.

Recon Technology reported fiscal year 2026 total revenue of RMB109.9 million, up 65.8% from the prior year, driven by expansion into overseas oilfield projects. The company also began operations at its waste plastic chemical recycling plant in Weifang, Shandong Province.

Yiren Digital reported second-quarter total loans facilitated of RMB6.3 billion, down 69% year over year, though insurance client growth remained strong with clients up 281% year over year. The company authorized a new share repurchase program of up to $20 million.

RedHill Biopharma announced it has acquired exclusive global and U.S. commercialization rights to Rebyota and Clenpiq for a $12 million upfront payment, funded by proceeds from its Talicia divestment.