Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, USA, March 21, 2022. REUTERS / Brendan McDermid / File Photo
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May 31 (Reuters) – The S&P 500 closed lower on Tuesday after a three-session rebound as volatile oil trade continued to raise inflation in focus and investors reacted to counterfeit comments from a US official. the Federal Reserve.
After a higher performance at the start of the session, the S&P energy sector (.SPNY) lost ground as oil prices reversed the course following a report that some OPEC members were exploring the idea of suspending Russia from an oil production deal could potentially pave the way for other producers. pumping significantly more crude.
Federal Reserve policy was also a major concern for investors, as U.S. President Joe Biden and Fed Chairman Jerome Powell met Tuesday to discuss inflation, which Biden said saying before the meeting was his “top priority.” Read more
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That was after Fed Chairman Christopher Waller said Monday that the U.S. central bank should be prepared to raise rates by half a percentage point at each meeting from now until inflation brake decisively. Read more
“The market is trying to figure out the end for the Fed,” said Jack Janasiewicz, portfolio manager at Natixis Investment Management Solutions.
And while lower commodity prices would be good news for long-term stocks, the impact of the report on OPEC and Russia on the energy sector may have scared the overall market a bit on Tuesday. .
“That’s the kind of thing that has the market on the edge,” Janasiewicz said. “When we started, the industry that brought us higher was energy.”
According to preliminary data, the S&P 500 (.SPX) lost 24.52 points, or 0.59%, to finish at 4,133.72 points, while the Nasdaq Composite (.IXIC) lost 48.62 points, or a 0.40%, to 12,082.51. The Dow Jones Industrial Average (.DJI) fell 190.80 points, or 0.57%, to 33,006.27.
All three indexes had recovered last week to break a streak of decades of defeats.
“There’s too much concern right now for markets to make a sharp V-bottom,” said Carol Schleif, BMO Family Office’s deputy director of investment, who sees the shares listed sideways for a while due to uncertainties such as Russia-Ukraine. war, the global economy and inflation, as well as Fed policy.
“Part of it is energy prices because, on the sidelines, they really affect people’s propensity to spend. People are really noticing higher prices at the grocery store,” he said.
Earlier in the day, data showed that US consumer confidence fell modestly in May amid steadily high inflation and rising rates, while a separate reading showed that consumer growth US housing prices warmed unexpectedly to record levels in March. Read more
Another key figure for this week is the monthly non-farm payroll figures for labor market indications.
Shares of U.S.-listed Yamana Gold Inc rose after South African miner Gold Fields Ltd (GFIJ.J) agreed to buy the Canadian miner on a $ 6.7 billion deal. Read more
Dexcom Inc. (DXCM.O) jumped after the glucose control system maker denied a report on merger talks with insulin pump maker Insulet Corp (PODD.O).
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Report by Sinéad Carew, Anisha Sircar, Devik Jain and Sruthi Shankar in Bangalore; Edited by Marguerita Choy
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