🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Shares

Stocks - S&P Slumps Despite Rising Oil Fueling Energy Rally

Published 17/09/2019, 05:49 am
© Reuters.
XAU/USD
-
US500
-
DJI
-
GM
-
SEE
-
APA
-
DVN
-
GC
-
LCO
-
CL
-
UAL
-
NWSA
-
HP
-
IXIC
-
CCL
-
US10YT=X
-
XEC
-
AAL
-
AMCR
-

Investing.com - Stocks moved lower overall on Monday in the wake of the drone attacks on Saudi Arabian oil facilities and oil fields.

But energy shares jumped as crude oil saw their biggest one-day jump in nearly 30 years.

The S&P 500 was off 0.31%, closing below 3,000 for the first time in four days.

The Dow industrials were off 0.53%, and the Nasdaq Composite fell 0.28%.

The market pullback came after the major indexes had just enjoyed three-straight weeks of gains in a rally set off on hopes that the U.S.-China trade war could ease. Instead, tension in the Middle East reasserted itself as a concern because Saudi Arabia produces roughly 10% of the world's crude oil.

The Trump Administration blamed the attack on Iran. The Iranians denied the charge. Combatants in Yemen, engaged in a war with the Saudis, claimed responsibility.

Meanwhile, voters in Israel head to the polls Tuesday in an election called by Prime Minister Benjamin Netanyahu, who had been unable to form a government after an earlier election cost him his majority in the Knesset.

The S&P 500 saw large losses for stocks vulnerable to energy price swings, such as American Airlines (NASDAQ:AAL); United Airlines (NASDAQ:UAL) and cruise-line operator Carnival (NYSE:CCL).

But the losses were offset by big gains for Apache (NYSE:APA), Cimarex Energy (NYSE:XEC) and Helmerich and Payne NYSE:HP). In fact, energy shares were by far the S&P 500's best performers.

At the same time, General Motors (NYSE:GM), hit by a labor strike, and News Corp (NASDAQ:NWSA) were lower.

The market's fall came as West Texas Intermediate crude hit nearly $63 a barrel and Brent futures crude settled above $69.

Gold Futures also moved higher as many investors sought shelter from geopolitical risk. Bond yields fell as well, reflecting the flight to safety. The 10-Year Treasury yield fell to 1.849% from Friday's 1.899%.

The Federal Reserve starts a two-day meeting on Tuesday and is expected to cut its key federal funds rate a quarter of a percentage point on Wednesday.

The stock-market slump was pretty much global, with stocks falling in markets in such countries as Germany, France, China, India and Brazil. Japan's stock market was closed.

The dollar moved up against major currencies.

The market tumble left the down about 1% from its all-time high set in July. The Dow ended down 1.17% from its July peak. The Nasdaq is down 2.2% from its peaks this summer.

Apache (NYSE:APA), contract oil and gas driller Helmerich and Payne Inc (NYSE:HP), Devon Energy Corporation (NYSE:DVN) and Cimarex Energy (NYSE:XEC) were among the top S&P 500 gainers.

American Airlines (NASDAQ:AAL), packaging company Amcor (NYSE:AMCR), Sealed Air (NYSE:SEE) and General Motors (NYSE:GM) were among the weakest S&P 500 performers.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.