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Thrilling Stock Market Swings: Oil Surges as Saudi Cuts Output

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Thrilling Stock Market Swings: Oil Surges as Saudi Cuts Output
Source: ndtv

Mixed Performance in US Stock Market as Investors Digest Manufacturing Data Ahead of Federal Reserve Meeting

On Monday, US stocks displayed a mixed performance as investors analyzed weaker-than-expected manufacturing data before the upcoming Federal Reserve meeting. During midday trading, the S&P 500 showed a modest gain of 0.26%, while the Dow Jones Industrial Average experienced a slight decline of 0.23%, equivalent to less than 100 points. Conversely, the Nasdaq Composite made progress, advancing by 0.47%.

Last week, the stock market experienced a boost from strong job numbers and the passage of the US debt ceiling bill. However, the market’s momentum was tempered by the release of manufacturing data, which fell short of expectations. As a result, investors eagerly await the Federal Reserve meeting to gauge its impact on the market.         Tweet

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Meanwhile, crude oil prices initially rose but later retraced some gains following Saudi Arabia’s announcement that it would reduce its oil output by an additional 1 million barrels per day starting in July. While the Organization of the Petroleum Exporting Countries (OPEC+) and its allies decided to maintain their current oil-production target through 2024, Saudi Arabia opted for an independent, voluntary cut. WTI crude futures, the US benchmark, increased over 1% to reach $72.62, and Brent crude futures, the global benchmark, rose by 1.33% to trade at $77.14 per barrel.

Treasury yields experienced a decline as the US services sector demonstrated a less optimistic outlook for the economy. The benchmark 10-year Treasury slipped to 3.67%. The ISM services PMI for May fell to 50.3 from 51.9 in April, representing the lowest reading since May 2020 and falling short of the forecasted 52.4.

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In other economic news, data from the US Census Bureau revealed a 0.4% increase in new orders for US manufactured goods in April compared to the previous month. Although this represented a slowdown from the revised 0.6% gain in March, it fell short of economists’ expectations of a 0.8% increase.

Investors closely monitor economic data releases to assess the likelihood of the Federal Reserve adjusting interest rates. Currently, the market reflects a 78% probability that the Fed will maintain interest rates at its upcoming meeting on June 13–14, according to CME’s FedWatch tool. The release of May’s Consumer Price Index on Tuesday will play a crucial role in influencing the market sentiment.

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Additionally, Apple Inc. (AAPL) is scheduled to unveil its new hardware product on Monday during its Worldwide Developers Conference in Cupertino, California. The anticipation surrounding this announcement propelled Apple’s shares to reach a potential record high.

Furthermore, Palo Alto Networks, Inc. (PANW) experienced a notable rise of over 5% after news broke that the stock would be added to the S&P 500 index, replacing Dish Network (DISH).

In cryptocurrency news, bitcoin (BTC-USD) dropped below $26,000, while ethereum (ETH) slipped below $1,800.

Mezhar Alee
Mezhar Alee
Mezhar Alee is a prolific author who provides commentary and analysis on business, finance, politics, sports, and current events on his website Opportuneist. With over a decade of experience in journalism and blogging, Mezhar aims to deliver well-researched insights and thought-provoking perspectives on important local and global issues in society.

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