Investors can breathe a sigh of relief now that September — historically the worst month of the year for stocks — is in the rear-view mirror. This past September certainly lived up to its reputation, with the S & P 500 and the Nadsaq suffering its biggest monthly loss in 2023. However, changing the calendar may not be enough to erase three material hurdles standing in the way of stocks returning to their winning ways. We’re talking about this year’s rise in bond yields, oil prices and the dollar — all at the time same. The 10-year Treasury yield on Monday hit its highest level since October 2007, breaking slightly above 4.7%, in a continuation of its march higher since April. In the third quarter alone, the 10-year yield climbed from roughly 3.8% to Friday’s settle of nearly 4.58%. In the three months that ended Friday, both the U.S. oil benchmark and the international crude standard posted their largest quarterly price increases since the first quarter of 2022, when Russia’s invasion of Ukraine roiled energy markets and sent the commodity soaring. The U.S. dollar index — which measures the greenback against six other currencies including the euro and Japanese yen – is riding an 11-week win streak, en route Monday to fresh highs for the year. To be sure, other factors such as a potential U.S. government shutdown — which has been temporarily avoided — and the multiweek United Auto Workers strike against General Motors (GM), Jeep parent Stellantis (STLA) and Club holding Ford Motor (F) have also injected uncertainty into the marketplace. Nevertheless, bond yields, oil prices and the dollar always have far-reaching implications for the stock market. Here’s a closer look at how they’re currently impacting things. US10Y YTD mountain 10-yield Treasury yield YTD It all starts with the bond market. “The higher yields, that’s what’s been pressuring the equity market,” Wharton School professor Jeremy Siegel said Monday on CNBC. Indeed, U.S. government bond prices sold off in September. The resulting jump in yields — which move inversely to bond prices — accelerated after the Federal Reserve on Sept. 20 indicated interest rates may stay “higher for longer,” as the central bank seeks to bring inflation down further, and the market finally listened. Of course, there are those of us who are worried that the full impact of the 11 rate hikes already made by the Fed since March 2022 has not fully been realized in the economy. Therefore, we think a higher for longer policy may be misguided. In September, the S & P 500 dropped 4.9% while the tech-heavy Nasdaq slumped 5.8%. The Dow Jones Industrial Average proved to be the relative outperformer, falling only 3.5% in the month. Still, the Dow’s decline was its worst monthly decline since February. Bonds impact stocks in multiple ways, including competing over investment dollars. Higher yields on U.S. government notes — which are the closest possible thing to a risk-free investment — can make bonds more attractive to own compared to stocks. That results in fewer incremental dollars going into riskier equities. Essentially, the risk-reward bar for stocks is raised when bonds offer more competitive returns than they did before. This plays out most notably in the Utilities sector , which has by far been the worst-performing sector in the S & P 500 this year, down more than 20%. The group traditionally is slower growing but offers large dividend payments, kind of like bonds. Bonds figure heavily into the way investors think about valuing stocks, especially for growth-oriented companies whose profits are largely expected to be generated years down the road. In a higher yield environment, those projected future earnings are worth less to investors today. This dynamic manifests in investors reconsidering the “multiple” they’re willing to pay for each dollar of earnings — which in turn can lower the price at which they’re willing to buy shares of a given company. Unprofitable companies tend to get hit harder when interest rates rise, which is why when the Fed started hiking last year we made a rule for the Club to only buy stocks of profitable, cash-flow generative companies. In general, companies generating substantial profits are typically less sensitive to the change in yields. @CL.1 @LCO.1 YTD mountain WTI vs. Brent crude YTD In the third quarter, West Texas Intermediate crude, the U.S. oil standard, rose more than 28% to nearly $91 per barrel. The global benchmark, Brent crude, jumped more than 27% to just over $92 per barrel. Both oil gauges are riding four-month win streaks after WTI traded in just the upper $60s in mid-June and Brent traded in the low $70s around the same time. The increase in oil prices over the summer months into the fall largely reflects a mismatch between demand (as economic data has proven more resilient than expected) and available supply (as major oil exporters Saudi Arabia and Russia took voluntary steps to reduce production). In early September, the two countries announced their supply cuts would extend through year-end, a surprise decision that added upward pressure on oil prices. For oil-and-gas companies, such as Club names Pioneer Natural Resources (PXD) and Coterra Energy (CTRA), higher prices are a boon to their financials. It’s no surprise energy was the only positive sector of the 11 in the S & P 500 in September. The picture is less clear-cut when considering the impact higher oil prices can have on consumers and non-energy companies. Consumers needing to pay more at the gas pump, in theory, cuts into the money they have available to spend on discretionary goods — an important dynamic to watch given consumer spending makes up about two-thirds of U.S. economic activity. Discretionary spending is on stuff consumers want, not the staples they have to have to conduct their daily lives. For much of the first part of the year, lower energy prices contributed to the decline in inflation. Now, crude has gone from tailwind to headwind in the battle to bring down inflation. To bond traders who have been driving yields higher, stickier inflation means possibly a heavier-handed Fed — the higher-rates-for-longer scenario. Inflation reduces the attractiveness of owning bonds, motivating investors to sell and in the process pushing up yields. “Don’t forget: Bondholders look at overall inflation. They don’t just look at core inflation,” Siegel said. “Core inflation might be doing good. Overall inflation is going to be affected by those oil prices.” Non-energy companies feel pain from more expensive oil, increasing transportation and freight costs that could cut into profit margins. Of course, firms could mitigate higher fuel costs by raising prices on the finished products — protecting their bottom lines in the near term but adding to the inflationary pressures in the broader economy. Technically, the Fed focuses on core inflation data, which strips out more volatile food and energy prices. However, companies passing through their higher energy costs would eventually make their way into inflation data. To be sure, firms “might struggle to pass on rising input costs this time, in contrast to [2021 and 2022],” JPMorgan global equity strategists wrote in a note to clients Monday. In many cases, crude prices trending higher could be interpreted as a sign of economic health — if there’s a lot of activity out there, that’s going to drive demand for oil, supporting prices. In those situations, equity investors might be more encouraged by the strong economic data and what that means for revenue and profit growth, rather than their concern about the inflationary impacts. It’s a bit more nuanced this time around, with the rise in oil prices primarily tied to a “supply shock, Wharton’s Siegel said, versus a significant increase in demand. @DX.1 YTD mountain U.S. dollar index YTD The U.S. dollar is once again something for stock market investors to worry about — territory it occupied for a good chunk of last year, as it soared to its highest levels in two decades. Higher rates often lead to a stronger dollar. In that way, the Fed’s higher-for-longer approach served not only to pump bond yields but the dollar, too. After a downward trend that began last fall , the U.S. dollar index reached its lowest level of 2023 on July 13, at 99.77 – representing a 12.6% decline from its September 2022 high of 114.11, according to FactSet. However, the U.S. dollar index has returned to rally mode, up about 7% to 106.89 on Monday since its July nadir. “Historically, strengthening [in the dollar] was almost always met with risk-off in equities,” JPMorgan wrote in its Monday to clients. A strengthening U.S. dollar is particularly problematic for U.S.-based companies that generate a significant portion of their sales overseas, such as Club holding Procter & Gamble (PG) and tech stalwarts like Meta Platforms (META) and Apple (AAPL). Converting profits generated overseas in weaker currencies into stronger dollars can weigh on reported revenue sales and bottom-line earnings. At the Club, we tend to look through currency fluctuations and focus more on each company’s underlying fundamentals. Our longer-term focus enables this approach, but we recognize that other, influential traders and investors take a different view, which can impact the overall market. (Jim Cramer’s Charitable Trust is long META, AAPL, PG, PXD and CTRA. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
People walk along Wall Street outside of the New York Stock Exchange (NYSE) on May 03, 2023.
Spencer Platt | Getty Images
Investors can breathe a sigh of relief now that September — historically the worst month of the year for stocks — is in the rear-view mirror. This past September certainly lived up to its reputation, with the S&P 500 and the Nadsaq suffering its biggest monthly loss in 2023. However, changing the calendar may not be enough to erase three material hurdles standing in the way of stocks returning to their winning ways.
The Hyundai IONIQ 6 N is finally here, and it delivers. Hyundai’s electric sports car is loaded with fun new features, a sleek design (including a massive rear wing), 641 horsepower, and much more.
Meet the Hyundai IONIQ 6 N
After teasing the new model for the first time last month, Hyundai created quite a buzz. Now, we are finally getting our first look at the upgraded high-performance EV.
Hyundai unveiled the new IONIQ 6 N at the famed Goodwood Festival of Speed on Thursday in West Sussex, England. The upgraded model follows Hyundai’s first high-performance EV, the IONIQ 5 N.
At the event, the company boasted that its new electric sports car marks “a pivotal milestone in Hyundai N’s electrification journey,” adding “Hyundai N is once again redefining the boundaries of high-performance electrification with the debut of the IONIQ 6 N.”
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The IONIQ 6 N delivers an impressive 641 horsepower (478 kW) and 77 Nm of torque, enabling a 0 to 100 km/h (0 to 62 mph) sprint in just 3.2 seconds. Its top speed is about 160 mph (257 km/h).
Hyundai IONIQ 6 N (Source: Hyundai)
That’s when using Hyundai’s Launch Control, one of the many performance features the new EV offers. Like its other N models, the IONIQ 6 is based on three pillars: Corner Rascal, Racetrack Capability, and, of course, an Everyday Sportscar.
Powered by two electric motors, a 223 hp (166 kW) at the front and another 378 hp (282 kW) motor at the rear, for a combined 600 hp (448 kW).
Hyundai IONIQ 6 N (Source: Hyundai)
Redefining the EV driving experience
The upgraded IONIQ 6 “redefines the EV driving experience,” according to Hyundai, thanks to its advanced in-house vehicle control software.
Central to this is Hyundai’s N Active Sound + system, which mimics the feel and sound of a traditional engine. An added N e-Shift simulates shifting gears.
Hyundai IONIQ 6 N interior (Source: Hyundai)
And that’s just the start. Other performance features, such as N Drift Optimizer, N Grin Boost, and N Torque Distribution, give you even more control over the vehicle while delivering increased power.
The IONIQ 6 N is powered by an 84 kWh battery, providing a WLTP range of up to 291 miles (469 km). However, EPA figures will be revealed closer to launch. Given the IONIQ 5 N has an EPA-estimated range of up to 221 miles, you can expect it to be slightly higher when it arrives.
With a 350 kW DC fast charger, Hyundai’s new performance EV can recharge from 10% to 80% in about 18 minutes.
With a length of 4,935 mm, a width of 1,940 mm, and a height of 1,495 mm, the IONIQ 6 N is about the size of the Porsche Taycan.
Hyundai will showcase the new high-performance EV during the hillclimb event alongside other models like the IONIQ 5 N, IONIQ 6 N Drift Spec, and IONIQ 6 N with N Performance parts. Hyundai promises each vehicle brings unique capabilities to the event, “guaranteeing a dynamic and thrilling on-track experience for all attendees.” Check back soon for more info.
What do you think of Hyundai’s new electric sports car? Would you buy one over the Porsche Taycan? Let us know in the comments.
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Elon Musk said that Tesla owners will “soon” have access to Grok, a large language developed by Musk’s xAI startup, days after the AI started calling itself ‘MechaHitler’.
Yesterday, xAI launched Grok 4, the latest version of its large language model.
The new model is benchmarking very well, but that’s generally the case with the latest model to come out. It edges the latest models from Google and OpenAI on intelligence by a few points, but it falls behind on speed:
At the launch event, Musk announced that Grok will “soon” be integrated into Tesla vehicles.
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This is something that the CEO has been discussing since founding xAI, which has been controversial because Musk has also positioned Tesla to compete in the AI space. He even stepped down from his role at OpenAI due to a “conflict of interest with Tesla.”
The announcement of the imminent integration of Grok into Tesla vehicles comes just days after the language model went haywire on X and started praising Hitler, referring to itself as ‘MechaHitler’, and made several antisemitic comments.
xAI acknowledge the issue and put Grok on timeout while they fixed it:
We are aware of recent posts made by Grok and are actively working to remove the inappropriate posts. Since being made aware of the content, xAI has taken action to ban hate speech before Grok posts on X. xAI is training only truth-seeking and thanks to the millions of users on X, we are able to quickly identify and update the model where training could be improved.
The “bug” came just a few weeks after Musk stated that he was displeased with Grok supporting left-wing narratives, even though it didn’t say anything inncurate, and that he would update Grok to “fix” it.
Now, the large language model (LLM) is expected to power the new voice assistant inside Tesla vehicles.
LLMs are becoming quite common in cars, especially premium vehicles. Ford, Mercedes-Benz, Stellantis, and a few others have all integrated Chat-GPT in some models.
Many Chinese automakers have also developed their own and deployed them in cars, even entry-level ones.
Tesla is playing catch up on that front.
Electrek’s Take
As I have previously stated, I think Musk is setting up Tesla to invest or even merge with xAI at a ridiculous valuation – making Tesla shareholders virtually pay twice for Twitter, which is now part of xAI.
This is how he will be able to gain wider control over the company’s share.
From the first discovery in Prudhoe Bay in 1968, Alaskans have had a love-hate relationship with oil.
On one hand, it allowed Alaska to abolish its state income tax, fund most government operations and provide every Alaskan with a dividend that continues to this day. On the other hand, it has left the state at the near total mercy of the global oil market.
In recent years, that has proven to be a bad bet. And it is the major reason Alaska finishes at the bottom of the CNBC America’s Top States for Business rankings in 2025.
With the price of Alaska North Slope crude oil down by double digits from a year ago, according to the Alaska Department of Revenue, Alaska has America’s worst economy as measured by the CNBC study. Economy is the heaviest-weighted category under this year’s methodology.
More coverage of the 2025 America’s Top States for Business
Alaska’s gross domestic product growth is in the bottom ten nationally. The state’s economy grew by just 1.5% last year, compared to 2.8% nationally.
More crucially, the state’s fiscal year 2026 budget is based on a forecast of $68 per barrel for crude oil, and it is unclear if that will hold. Alaska North Slope crude traded as low as $63.49 on May 5 before rebounding above $70 in recent weeks. State forecasters are counting on oil for around 70% of the state’s revenue over the next ten years, or nearly half the state’s operating budget. And some localities are far more dependent.
“When you look at the economic engine by default,” North Slope Borough Mayor Josiah Patkotak told CNBC last month, “That happens to be oil and gas by about 98% of our operating budget.”
$40 billion bet on natural gas as diversifier
For decades, Alaska has sought ways to diversify its economy, but it has had limited success. Proposals have involved alternative energy, agriculture, and the state’s tourism sector.
Alaska Governor Mike Dunleavy speaks during a news conference at his office in Anchorage, Alaska, U.S. March 22, 2022.
Yereth Rosen | Reuters
In 2023, Gov. Mike Dunleavy, a Republican, signed legislation to put Alaska into the carbon market, using the state’s vast public lands for carbon storage, and to generate carbon offset credits for high carbon emitters in other states. But the program is still in the study phase. A report to the legislature in January said the program is not expected to generate any revenue until at least 2027.
More recently, the Trump administration is backing a proposal to build a natural gas pipeline alongside the Trans-Alaska oil pipeline, allowing the U.S. to ship liquid natural gas — a byproduct of North Slope oil production — to Asia.
The idea has been around for years, but the price tag, estimated at around $40 billion, was impossible for the industry to swallow even when petroleum prices were high.
Now, however, administration officials think that trade tensions might change the economics.
“There [are] countries around the world looking to shrink their trade deficit with the United States, and of course, a very easy way to do that is to buy more American energy,” U.S. Energy Secretary Chris Wright told CNBC’s Brian Sullivan in Prudhoe Bay last month.
“If you get the commercial offtakers for the gas, financing is pretty straightforward,” Wright said.
If the project gets off the ground, it could provide a huge boost to Alaska’s economy, though it would still be at the mercy of commodity prices.
Lack of tech infrastructure, high costs
Alaska’s struggling economy is a major reason for its poor competitive performance, but it is not the only one.
The state ranks No. 49 in Infrastructure. While the state’s roads and bridges are in better shape than in many states in the Lower 48, its virtual infrastructure leaves much to be desired. Fewer than 2% of Alaskans have access to affordable broadband service, according to BroadbandNow Research. The data center boom has passed Alaska by thus far, with only four in the entire state.
Alaska is a notoriously expensive place to live, especially in the many remote parts of the state.
“When you’re paying 16 bucks a gallon for milk, we’ve got to figure out how to make sure that you can afford to buy the milk so you can live here. We’ve got to make sure you can afford to buy the gas so you can hunt here,” said Patkotak.
But one aspect of life is a bargain in Alaska. At a time of soaring homeowner premiums, online insurance marketplace Insurify projects Alaska homeowners insurance premiums will average $1,543 this year, the second lowest in the nation.
Join the conversation. Didn’t see your state mentioned? You can see where it ranked overall, and in all 10 categories of competitiveness, in the full rankings of the 2025 America’s Top States for Business.