Traders work on the floor of the New York Stock Exchange (NYSE) in New York, USA, March 21, 2022. REUTERS / Brendan McDermid / File Photo
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May 31 (Reuters) – The S&P 500 closed lower on Tuesday after three sessions after volatile oil trading continued to raise inflation in focus and investors reacted to hawks by comments from a Federal Reserve official.
After improving earlier in the session, the S&P (.SPNY) energy sector lost ground as oil prices reversed after a report reported that some OPEC members were exploring the idea of stopping Russia from an oil deal which potentially paves the way for other manufacturers to pump significantly more raw.
Federal Reserve policy was also a priority for investors, as US President Joe Biden and Fed Chairman Jerome Powell met on Tuesday to discuss inflation, which Biden said before the meeting was his “top priority”. Read more
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This came after Fed Governor Christopher Waller said Monday that the US Federal Reserve should be prepared to raise interest rates by half a percentage point at every meeting from now on until inflation is contained. Read more
“The market is trying to understand the end result for the Fed,” said Jack Janasevic, portfolio manager at Natixis Investment Management Solutions.
And while lower commodity prices would be good news for stocks in the long run, the impact of the OPEC and Russia report on the energy sector may have scared the wider market on Tuesday.
“This is something that is on the edge of the market,” Janasevic said. “When we started, the sector that led us higher was energy.
According to preliminary data, the S&P 500 (.SPX) lost 24.52 points, or 0.59%, to finish at 4133.72 points, while the Nasdaq Composite (.IXIC) lost 48.62 points, or 0.40%, to 12,082.51. The Dow Jones Industrial Average (.DJI) fell 190.80 points, or 0.57%, to 33,006.27 points.
All three indices rose last week to break a decade-long losing streak.
“There are too many concerns at the moment for markets to make a sharp V-bottom,” said Carol Schleif, deputy chief investment officer at BMO Family Office, who sees shares traded sideways for some time due to uncertainty, including in Russia. -Ukraine war, global economy and inflation, as well as Fed policy.
“Part of it is energy prices, because on the margin they really affect people’s propensity to spend. People are really noticing higher prices in the grocery store,” she said.
Earlier in the day, data showed that consumer confidence in the United States declined moderately in May amid persistently high inflation and rising levels, while a separate calculation showed that rising house prices in the United States unexpectedly warmed to record levels in March Read more
Other key data to be due this week are monthly non-agricultural wage figures for labor market signals.
Shares of Yamana Gold Inc rose in the United States after South African miner Gold Fields Ltd (GFIJ.J) agreed to buy the Canadian miner in a $ 6.7 billion all-share deal. Read more
Dexcom Inc (DXCM.O) jumped after the manufacturer of glucose monitoring systems denied a merger negotiation report with insulin pump manufacturer Insulet Corp (PODD.O).
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Report by Sinead Karyu, Anisha Sirkar, Devik Jain and Sruti Shankar in Bengaluru; Edited by Margerita Choi
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