Market News:
On Monday, Wall Street saw a mixed close, with the S&P 500 and Nasdaq finishing in positive territory while the Dow ended in the red. The decline in crude oil prices, particularly in the energy sector, weighed on the broader market.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell by 0.3% or 115.29 points to close at 38,571.03. Of the 30 stocks in the index, 16 ended in negative territory, 13 were in the positive zone, and one remained unchanged. The Nasdaq gained 0.6%, advancing by 93.66 points to close at 16,828.67. The S&P 500 also saw a 0.1% increase, finishing at 5,283.40. Out of the 11 sectors in the index, three ended in the positive territory, while eight were in the negative zone. The Health Care Sector SPDR (XLV), the Technology Select Sector SPDR (XLK), and the Communication Services Select Sector SPDR (XLC) surged, while the Energy Select Sector SPDR (XLE) tumbled.
The fear-gauge CBOE Volatility Index (VIX) was up by 1.5% to 13.11. Trading volume on Monday was lower than the 20-session average, with advancers outnumbering decliners on both the NYSE and Nasdaq.
OPEC+ Decision Sparks Sharp Decline in U.S. Crude Oil Prices:
U.S. crude oil prices experienced a sharp decline on Monday following a decision by OPEC+ members to gradually increase production. The group, which includes major oil producers like Saudi Arabia, Russia, and Iraq, announced plans to ramp up production in the coming months. This decision led to concerns about an oversupply of oil in the market, causing prices to drop. Brent crude fell over 3% while West Texas Intermediate futures slipped below $75 per barrel.
Economic Data:
The Institute of Supply Management (ISM) reported a manufacturing index of 48.7% in May, lower than the previous month’s 49.2% and below the consensus estimate of 49.6%. Any reading below 50 indicates a contraction in manufacturing activities. Construction spending also declined in April, contrary to expectations of an increase.
Overall, the market saw mixed results on Monday, with the energy sector and oil prices playing a significant role in the day’s trading activity.