Nike stock crashes to a low: nearly 39% loss year-to-date

Geopolitical tension is once again shaking the markets: trading on Wall Street is seeing price declines, in parallel with the strengthening of oil prices and a rise in US bond yields. In the background is the expiration of the 60-day ceasefire between the US and Iran, alongside the intensification of threats between the parties and fears regarding developments in the Strait of Hormuz area.

In the evening hours, negative sentiment in New York intensified. The Nasdaq index is down by about 0.3%, the S&P 500 index is losing about 0.4%, and the Dow Jones is weakening by about 0.5%. At the same time, the price of a barrel of Brent crude oil is trading slightly below $90, while American WTI oil is hovering around $83 per barrel.

The rise in energy prices is also felt in the bond market. The yield on the 10-year US government bond is rising by about 2 basis points and reaching about 4.71%, while the yield on the 30-year bond is climbing by more than 3 basis points to about 5.3%, a level that sits in the highest zone recorded in about two decades.

Standing out on the positive side are chip stocks. The sector is receiving a tailwind from a report on particularly strong preliminary results from the artificial intelligence company Anthropic. According to the report, the company's revenues in the second quarter reached more than $11.5 billion, compared to $787 million in the same period last year. At the same time, shares of Micron, Western Digital, and Seagate also benefited from statements by the US administration regarding the purchase of chips from China.

Nike stock is also attracting attention, but for completely different reasons. The stock is trading at its lowest level since September 2014, after losing nearly 39% since the beginning of the year. In the background are increasing competition from brands like On and Hoka, weakness in demand in China, and criticism from J.P. Morgan regarding the pace of the company's recovery plan.

In Europe, the trading day ended with declines. The stock exchanges in London and Frankfurt lost about 0.3%, while Paris fell by about 0.7%. Earlier, a more positive trend was recorded in Asia, as indices in China and Hong Kong climbed during the day.

One of the encouraging figures from the US was the Empire State manufacturing index. Factory activity in New York climbed to its highest level in more than four years, with a reading of 20.6 points, compared to a forecast of only 12 points. However, the strong figure failed to neutralize the concerns coming from the geopolitical front and the energy market.