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| American stock market traders. © Reuters=News1 |
The U.S. stock market showed mixed results as concerns over the slowing U.S. economy surged, despite the rally spurred by expectations of the Federal Reserve’s rate freeze and a decline in the U.S. inflation rate, with international oil prices plummeting by about 5%.
On the 16th (local time) in the New York Stock Exchange, the S&P500 rose by 0.12%, the Nasdaq by 0.07%, but the Dow, which includes many energy stocks, fell by 0.13%.
The U.S. stock market has rallied this month due to better-than-expected inflation data. As of today, the S&P500 index has surged by 7%, the Dow by 5%, and the Nasdaq by 9% respectively this month.
However, the U.S. stock market rally was halted as international oil prices plummeted by about 5% due to concerns over a slowdown in the U.S. economy.
International oil prices fell by about 5% on the day. West Texas Intermediate (WIT) futures are trading at $72.90 per barrel, down 4.9% from the previous trading day, marking a four-month low at the New York Mercantile Exchange.
North Sea Brent crude futures also dropped 4.64% to record $77.42 per barrel.
This is due to a decrease in U.S. energy demand.
According to data from the U.S. Energy Information Administration (EIA), U.S. crude oil inventories increased by 3.6 million barrels last week, while industrial production decreased by 0.6%. Crude oil inventories are increasing, but demand is decreasing.
Phil Flynn, an oil expert at Price Futures Group, analyzed, “The slowdown in industrial production and the increase in supply are affecting the overall slowdown in crude oil demand.”
As a result, Chevron, a major U.S. oil company, fell more than 2%, and the S&P500 energy sector plummeted nearly 3%, marking its worst day in over a month.
Retailers’ results were also disappointing. Walmart’s results met market expectations, but its outlook fell short, causing a 8.09% plunge. This folds expectations for the holiday shopping season. U.S. consumption is slowing down due to the economic slowdown.
The failure to narrow economic differences at the U.S.-China summit also contributed to the market’s mixed results.
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| U.S. President Joe Biden (left) and Chinese President Xi Jinping shake hands at the Fairlolly Estate near San Francisco, U.S., on the 15th (local time). © Reuters=News1 © News1 Lee Kwang-ho reporter |
The day before, the U.S. and Chinese leaders held a face-to-face summit for the first time in about a year and agreed on fentanyl control and the restoration of high-level military talks, but failed to narrow economic differences.
In particular, President Biden referred to President Xi as a ‘dictator’ in a press conference immediately after the summit, overshadowing the results of the meeting.
As a result, the U.S. stock market appears to have shown mixed results.
In terms of stocks, electric vehicles, including Tesla, which fell by 3.81%, all fell except for Lucid.
In semiconductors, Intel soared nearly 7%, but other companies fell, and the Philadelphia Semiconductor Index rose only 0.32%.
sinopark@news1.kr
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