Dow falls 100 points after Wall Street suffered worst day since June

The S&P 500 failed last week to stay above the 200-day moving average — a level closely watched by traders — as the market’s rally off the mid-June lows ran out of steam.

Now, Bank of America’s Stephen Suttmeier is advising investors watch the following levels to see where the market could find some support:

• 100-day moving average: 4,090
• 50-day moving average: 3,969
• 38.2% Fibonacci retracement level of June-to-August rally: 4,062
• 61.8% Fibonacci retracement level of June-to-August rally: 3981

The S&P 500 traded around 4,135 on Tuesday.

Despite the market’s recent setback, Suttmeier reiterated his belief that the S&P 500 is in a “correction within [a] secular bull market.” He noted that: “The 2022 correction may be running its course.”

—Fred Imbert, Michael Bloom

Semiconductor stocks outperformed in midday trading as a decline in U.S. Treasury yields took some pressure off tech and growth stocks. The tech-heavy Nasdaq Composite was last up 0.26%, and the iShares Semiconductor ETF was 1.3% higher.

Shares of Nvidia, Broadcom and Intel advanced 1.4%, 1.1% and 1%, respectively.

Hedge fund manager Dan Niles said on “Tech Check” that he has positioned his portfolio for a U.S. recession.

Niles said that the recent decline in forward earnings estimates would continue in the months ahead and that the Federal Reserve would continue to put pressure on the economy through rate hikes.

“This is going to be a long, punishing journey, as the Fed will probably remind us at Jackson Hole on Friday. They’ve still got to raise rates a lot more,” Niles said.

Niles said that his Satori Fund owns Amazon and Walmart because those companies could gain market share in a recession. On the other hand, the fund is shorting enterprise tech stocks where corporate demand could weaken in a recession.

Overall, Niles said the S&P 500 could get back down to 3,675 or even lower.

— Jesse Pound

The S&P 500’s energy sector jumped 4% on Tuesday as oil prices rose after Saudi Arabia hinted at a potential OPEC+ output cut.

Global benchmark Brent crude gained $2.64, rising to $99.12 a barrel. U.S. West Texas Intermediate crude added $2.83, or 3.13%, to $93.19.

Shares of Halliburton, Occidental Petroleum and Diamondback Energy jumped 8%, 7.1% and 5.1%, respectively. Shares of Exxon Mobil, EOG Resources and Pioneer Natural Resources gained more than 3% each.

— Samantha Subin

Shares of Occidental Petroleum climbed 8% around midday trading Tuesday, continuing a rally triggered by news that Warren Buffett’s Berkshire Hathaway received approval to buy up to 50% of the oil giant.

Occidental has become one of retail traders’ favorite stocks thanks to the endorsement from Buffett. The stock has been the biggest winner this year on the back of soaring oil prices, rising more than…