US stocks were mostly lower today due to rising oil prices, which heightened inflation and interest rate hike concerns. The Dow Jones index, which includes shares of 30 leading US companies, gained 0.10 percent, closing trading at 51,231.64 points. However, the broader S&P 500 index fell by 0.47 percent to 7,765.36 points, and the Nasdaq Composite index, which represents many advanced technology companies, even dropped by 1.25 percent to 27,193.34 points.
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Oil prices surge, dragging stocks down. Investors await earnings season
Oil prices rose significantly today due to ongoing uncertainty surrounding the conflict in the Middle East and fears of production disruptions in the United States caused by Hurricane Isaias. “The stock market is nervous because of high oil prices,” said analyst Peter Cardillo of Spartan Capital Securities. “This is a pretext for what I consider profit-taking (from the stock market’s previous gains),” he added.
For example, shares of chip manufacturers, which had previously seen strong growth, contributed to the stock market’s decline. Investors’ attention is now shifting towards the approaching start of the US corporate quarterly earnings season. Next week, several large US banks will present their financial results for the third quarter.
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Euro slightly strengthens. Markets unnerved by bond sell-off and political tensions in France
On the foreign exchange market today, the US dollar slightly weakened against the euro, with investors’ attention remaining on the development of government bond yields. Around 10:00 PM CEST, the single European currency gained approximately 0.2 percent, trading near 1.1215 USD. Bond yields for eurozone governments initially rose sharply again today as investors continued to sell off bonds from heavily indebted countries such as France and Italy. However, yields later retreated from their daily highs, Reuters reported.
In recent days, French government bonds have come under particular pressure. According to analysts, France is grappling with very serious budgetary problems, the resolution of which is further complicated by the tense political situation in the country ahead of the upcoming presidential elections.
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Source: CTK
