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US stock markets closed flat on Tuesday following a lacklustre session as investors took cues from the rising international oil prices that can potentially aggravate the inflation rate.
The S&P 500 was down 0.05% to 4,202.04. The Dow Jones rose 0.13% to 34,575.31. The NASDAQ Composite Index dropped 0.09% to 13,736.48. The small-cap Russell 2000 gained 1.14% to 2,294.74.
Global oil cartel OPEC and its partners said on Tuesday that they would relax the pandemic-era curbs on oil production as demand surged in the international markets this week. It also plans to increase its oil output by 450,000 barrels a day beginning in July.
The meeting comes after Brent oil hit the US$70 per barrel mark on Monday, the highest spike since 2019. Oil prices began to increase after an expert committee of the OPEC on Monday forecast that the demand to grow to 6 MBPD this year. WTI crude climbed nearly US$68 per barrel on Tuesday.
Investors feared high oil prices might increase volatility in the markets. In a deviation from the past, the Federal Reserve also has allowed inflation to rise above the 2% mark to manage the economic downturn. Although a rate hike has been ruled out, inflation worries weighed on investors’ minds.
On Tuesday, the Commerce Department said that construction spending increased in April from the previous month and expenditures in non-residential and public projects helped compensate the losses from reduced spending in the private construction sector. The report assumes significance since it shows the stimulus package is starting to reach the individual projects on the ground.
Meanwhile, the World Health Organization (WHO) has approved China’s Sinovac covid drug for distribution, which means the drug can now be distributed through its Covax program that seeks to make covid vaccines available to all countries.
In the corporate world, Twitter has said that it is working on a new feature to offer more options to advertisers. The company also said that it plans to double its revenue by 2023 from the 2020 level. The stock (TWTR) was trading 0.97% down from the previous close.
The Silicon Valley cybersecurity startup Exabeam announced Tuesday that it raised US$200 million in the latest round of funding, bringing its worth to US$2.4 billion. It saw robust sales last year.
Brazilian packaged meat supplier JBS SA, which has production facilities in several US states., told the US government that it had been attacked by Russian-origin hackers. Monday’s attack had forced shut some of its plants, briefly disrupting supplies in North America and Australia. The White House said that Russian authorities we informed about the development.
Meanwhile, AMC Entertainment Holdings (AMC) and GameStop Corporation (GME) stocks continued their previous week’s rallies, rising more than 22% and 12%, respectively. Healthcare company Abbott Laboratories (ABT) declined more than 9% without any apparent reason.
Boeing Co. gained 3.12%, and General Electric Co. (GE) was down 0.64%. Shares of technology heavyweights Apple, Amazon, and Tesla were trading low, while the Facebook stock was slightly up.
The S&P 500 segments such as energy, real estate, basic materials, financials, and industrials edged higher, while consumer non-cyclicals, technology, consumer cyclicals, utilities, and healthcare segments pulled back.
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Top Gainers
Top performers on S&P 500 included Devon Energy Corp (13.70%), Marathon Oil Corp (13.63%), APA Corp (US) (10.87%), Occidental Petroleum Corp (9.67%). On NASDAQ, top performers were Orbital Energy Group Inc (115.21%), ENGlobal Corp (40.63%), Aethlon Medical Inc (34.48%), Lexinfintech Holdings Ltd (28.01%). On Dow Jones, Boeing Co (3.12%), Dow Inc (2.91%), Goldman Sachs Group Inc (2.80%), Chevron Corp (2.76%) were the leaders.
Top Losers
Top laggards on S&P 500 included Abbott Laboratories (-9.31%), Thermo Fisher Scientific Inc (-4.79%), Invesco Ltd (-4.70%), Danaher Corp (-4.27%). On NASDAQ, Immunovant Inc (-37.99%), Mudrick Capital Acquisition Corporation II (-15.16%), Shineco Inc (-13.35%), Eos Energy Enterprises Inc (-12.48%) were the losers. On Dow Jones, Johnson & Johnson (-2.20%), Amgen Inc (-1.83%), Procter & Gamble Co (-1.46%), Nike Inc (-1.43%) were the laggards.
Volume Movers
Top volume movers were Ford Motor Co (16.22M), Apple Inc (13.40M), Bank of America Corp (12.72M), AT&T Inc (8.81M), Advanced Micro Devices Inc (8.71M), General Electric Co (8.60M), Marathon Oil Corp (8.55M), Pfizer Inc (7.56M), Orbital Energy Group Inc (30.13M), Sundial Growers Inc (25.83M), Vertex Energy Inc (18.50M), Ideanomics Inc (8.85M), Naked Brand Group Ltd (8.76M), Organogenesis Holdings Inc (7.95M), Intel Corp (6.99M), Microsoft Corp (6.38M), Cisco Systems Inc (5.00M), Merck & Co Inc (4.51M).
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Futures & Commodities
Gold futures were down 0.14% to US$1,902.55 per ounce. Silver dropped 0.09% to US$27.988 per ounce, while copper was down 0.55% to US$4.6520.
Brent oil futures rose 0.03% to US$70.62 per barrel and WTI crude was up 2.50% to US$67.98.
Bond Market
The 30-year Treasury bond yields were up 0.69% to 2.287, while the 10-year bond yields increased 0.83% to 1.606.
US Dollar Futures Index slightly decreased 0.08% to US$89.922.
