WALL STREET: Wall Street's decline affected European stock markets – Oil companies as a bright spot

Wall Street is weighed down by concerns that central banks will hold on to high interest rates for longer than expected. The rise was mainly in energy companies, which are boosted by the tightening of the oil market.

Wall Street’s key stock market indices started to decline on Tuesday. By five, the S&P 500 had slipped by 1.0 percent, the Dow Jones by 1.3 percent and the technology-focused Nasdaq 100 index by 1.4 percent.

In the background, concerns have intensified that the US Fed and the European Central Bank will lower the level of key interest rates more slowly than expected. Wall Street’s bearish sentiment spread to European stock markets in the evening.

The bright spot in the middle of the red rates were Wall Street’s oil and gas companies, which got a boost from the tensions reflected in the oil market.

At the time of the review, energy companies and oil refiners were at the top of the S&P 500 index. Phillips 66 (+2,2 %), Occidental Petroleum (+2,0 %), LyondellBasell (+2,0 %), ExxonMobil (+2,0 %), Pioneer Natural Resources (+2.0%). They were also on a slightly gentler rise ConocoPhilips (+1.6 %) and Chevron (+1,3 %).

The price of Phillips 66, which is on the rise, is probably also supported by the news announced on Monday, according to which its plans to convert an oil refinery in San Francisco to the production of renewable fuels are moving forward.

At five in the afternoon Finnish time, the reference price of US oil, WTI, fluctuated at $84.8 per barrel, and the global price of Brent crude oil at $88.3 per barrel. Both WTI and Brent traded at their highest levels since the end of October on Tuesday.

Israel’s airstrike on the Iranian embassy in Syria has reinforced fears of a new escalation of the situation in the Middle East and possible disruptions to oil supply chains.

The Mexican state oil company is also signaling a possible weakening of the oil supply Pemexin intention to cut crude oil exports in the coming months. Mexico is the fourth largest producer of crude oil in the Americas, after the United States, Canada and Brazil.

Several companies in the health sector, such as Humana (-13.5 %) and CVS Health (-8.3%). In the technology sector, among others, semiconductor manufacturers were on the decline AMD (-4.1 %) and Nvidia (-2,4 %).

The bill also included an electric car manufacturer Teslawhose shipments in the first quarter of the year fell 8.5 percent and fell well short of Wall Street expectations.

This is the lowest quarterly delivery volume for Tesla since the third quarter of 2022.

By Editor

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