Follow Us on Google Discover
Drop in oil price and concerns over the global economy weighed on the Dow Jones industrial average on Monday, after the 30-stock index set a new high on Friday.
Oil prices fell on Monday, adding to last week’s losses, as increasing Covid cases raised fears of a demand slowdown. West Texas Intermediate oil futures fell more than 4% at one point, reaching a low of $65.15, the lowest level since May. During afternoon trading, the contract regained some of its losses, eventually settling 2.64 percent down at $66.48 per barrel. After touching a low of $67.60, international benchmark Brent crude closed at $69.04 per barrel, down 2.35 percent.
With oil falling, energy equities fell 1.3%, according to the Energy Select Sector SPDRETF. Exxon Mobil and Chevron both saw their stock prices drop by 1.2 percent and 1.7 %, respectively. Diamondback Energy has lost 3.5% of its value.
Quick market analysis
The Nasdaq gained 0.16%, while the S&P 500 fell 1%. The Dow Jones industrials lost 0.3%, while the Russell 2000 index of small-cap stocks fell 0.6 percent. On both the Nasdaq and the NYSE, early statistics showed lesser activity than on Friday.
Also Read
Chevron (CVX) and UnitedHealth (UNH), both of which dropped approximately 1% on Monday, were among the Dow Jones underperformers. Amgen (AMGN) and IBM (IBM) both lost about 1% of their value. Apple (AAPL) lost less than 0.1%, while Microsoft (MSFT) moved down 0.4%.
Meanwhile, in the United States of America, the 10-year Treasury note yield was 1.32% on Monday, up from Friday. Last week, yields increased for four days in a row.
Futures
After the Dow Jones Industrial Average and S&P 500 dropped from record highs in normal trade on fears about a rise of Covid-19 cases, U.S. stock futures were barely changed on Monday night.
Futures on the Dow Jones Industrial Average gained 0.04 %. S&P 500 futures ticked up 0.01% and Nasdaq 100 futures slid 0.03%.
Since oil prices tumbled 4%, it prompted a sell-off in energy companies as investors worried that a wave of Covid cases may lead to a demand slowdown.
