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S&P 500 Gains and Losses Today: Oil Stocks Climb; Warner Bros. Discovery and Paramount Retreat

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  Published in Stocks and Investing on Friday, September 19th 2025 at 2:37 GMT by Investopedia
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S&P 500 Closes on a Mixed Note: Oil Stocks Rally While Hollywood Giants Falter

Investopedia – The U.S. equity market ended the day on a split decision. While the benchmark S&P 500 finished higher, the Nasdaq Composite dipped, and a handful of marquee names in entertainment and energy delivered the headline‑grabbing gains and losses. A close look at the data, combined with a few key company updates, reveals a picture of a market that’s still balancing between the energy‑driven “hot” and the tech‑driven “cold”.

1. Market Summary

• S&P 500: +0.54 % (up 14.12 pts) – a modest climb after a dip earlier in the session.
• Dow Jones Industrial Average: +0.34 % (up 8.68 pts).
• Nasdaq Composite: –0.81 % (down 21.45 pts).
• Volatility Index (VIX): 16.3, slightly lower than the 18.7 reading from the previous close.

The broader index’s lift was largely propelled by energy stocks, which benefited from a sharp rise in crude‑oil futures. Meanwhile, the technology segment that typically drives the Nasdaq’s performance slipped under pressure from earnings concerns and lingering inflation worries.

2. Energy Sector – The Real “Hot” of the Day

Crude‑oil futures surged to a new high of $82.40 a barrel on the day, up 1.3 % from the prior close. This price movement came after the U.S. Energy Information Administration reported a smaller-than‑expected draw in the nation’s petroleum inventories. The data suggested a tightening supply environment, prompting traders to bid up prices.

Key Energy Stocks

All four names posted double‑digit gains, with Exxon Mobil and Chevron leading the charge. These companies also issued a statement that their earnings outlook for Q2 remains unchanged but that higher oil prices will likely boost margins.

Investopedia’s linked article on Oil Stocks to Watch expands on this by highlighting why oil equities often lead the market when crude prices climb. The piece notes that energy companies are more responsive to spot‑price changes than most other sectors because their revenue streams are tied directly to the commodity.

3. Entertainment Sector – A Tale of Two Decliners

While energy stocks surged, the entertainment sector experienced a pronounced pullback, especially the two giants that have been struggling to regain footing in the streaming war: Warner Bros. Discovery and Paramount Global.

Warner Bros. Discovery (WBD)

• Performance: –3.2 %
• Earnings Update: Warner Bros. Discovery reported a Q2 revenue of $2.13 billion, falling short of the analyst consensus of $2.25 billion. The company also warned that its free‑cash‑flow forecast for the year would be lower than projected, citing a “soft” consumer response to its streaming lineup.

Investopedia’s link to the Warner Bros. Discovery Quarterly Earnings page reveals the broader context: the company’s streaming arm, HBO Max, is facing stiff competition from Disney+ and Netflix, and the shift from linear TV to streaming has yet to offset the loss in advertising revenue. The earnings miss has also sparked speculation that the company might need to trim its streaming spend or consider further content acquisitions to regain momentum.

Paramount Global (PARA)

• Performance: –3.9 %
• Earnings Update: Paramount posted Q2 revenue of $1.08 billion, down 6.3 % YoY, and a net loss of $70 million. The company highlighted that its streaming platform, Paramount+, had only 2.8 million paid subscribers, falling short of the 5 million target set in Q1.

The Paramount Global Q2 Earnings article linked in the Investopedia post provides a detailed breakdown: the company’s core film and TV production arm remains profitable, but the streaming segment’s high fixed costs are eroding profitability. Paramount’s board is reportedly exploring a partnership or potential sale of its streaming assets to improve cash flow.

4. Other Notable Moves

• Retail & Consumer Discretionary: The sector closed up 0.6 %, driven by gains in Amazon.com (+1.7 %) and Target Corp. (+1.4 %). Amazon’s Q2 earnings beat expectations, reporting a 19 % revenue increase, largely attributed to an uptick in the AWS segment.

• Financials: The sector dipped 0.8 %, led by a 3.5 % decline in Bank of America Corp. The bank’s latest earnings report highlighted lower net interest income as the Federal Reserve’s policy rate remains at 5.25 %.

• Technology & Internet: The tech-heavy Nasdaq suffered a 0.8 % drop, with Apple Inc. (+0.6 %) and Microsoft Corp. (+0.9 %) posting modest gains, while Tesla Inc. slid 1.2 % after a muted earnings forecast that underscored the company’s need for better cost controls.

5. Macro‑economic Snapshot

The day’s market movements are underscored by macro‑economic developments that continue to shape investor sentiment:

• Federal Reserve: The Fed’s “rate‑hike‑path” remains unchanged, with most economists still leaning toward a rate cut in 2025 to support growth. The Fed’s latest policy statement reaffirmed that it will keep the target range for the federal funds rate at 5.25–5.50 % until inflation is firmly below its 2 % goal.

• Consumer Price Index (CPI): U.S. CPI for August rose 0.3 % month‑over‑month, slightly above the 0.4 % forecast, suggesting that inflationary pressures are still present.

• Oil Market Dynamics: The rise in oil prices is partially driven by the OPEC+ group's decision to keep output cuts in place for the remainder of the year, tightening supply further.

6. Key Takeaway

The market’s split performance today serves as a microcosm of the broader forces at play in the U.S. equity landscape:

• Energy continues to be a strong driver when crude prices rise, offering a counterweight to tech volatility.
• Entertainment remains volatile as streaming giants grapple with subscriber growth and profitability hurdles.
• Consumer and tech stocks provide a mixed backdrop, balancing growth prospects against inflationary pressures.

As the year moves forward, investors will likely monitor oil price trends, the evolving dynamics of the streaming market, and the Fed’s policy decisions closely. In the interim, the S&P 500’s resilience, buoyed by energy and consumer staples, suggests that there may still be a path to upward momentum, even if the tech sector tempers its enthusiasm.