Shares of energy companies remained relatively flat, but experienced a significant decline for the week due to concerns about the impact of higher long-term interest rates on demand.
Oil futures reached a three-month low as traders prepared for a delay in anticipated rate cuts. Goldman Sachs Group economists revised their prediction for the first Federal Reserve cut to September, citing the need for stronger inflation numbers and signs of weakness in economic data.
According to the economists, recent comments from Fed officials indicated that a rate cut in July would require substantial evidence of softness in economic activity or labor market data, which was not currently the case following positive May PMIs and lower jobless claims.
Natural gas futures dropped by 4% for the week after a previous surge in anticipation of the summer cooling season.
For more information, contact Rob Curran at rob.curran@dowjones.com.
(END) Dow Jones Newswires
05-24-24 1722ET