The S&P has fallen since last week’s rally centered on inflation

Traders work on the New York Stock Exchange (NYSE) site in New York City, USA on March 21, 2022. REUTERS / Brendan McDermid / File Photo

Sign up now for unlimited free access to Reuters.com

May 31 (Reuters) – The S&P 500 plunged on Tuesday after a three-session rally as volatile oil trading focused on inflation and investors reacted negatively to a Federal Reserve official’s remarks.

After performing well in the previous session, S&P’s Department of Energy (.SPNY) Oil prices plummeted after a report that some OPEC members were exploring the idea of ​​suspending Russia from the oil production deal, which led to the pumping of significantly more crude oil to other producers.

As US President Joe Biden and Federal Reserve Chairman Jerome Powell met on Tuesday to discuss inflation, the Federal Reserve’s policy has been at the forefront of investors’ minds. read more

Sign up now for unlimited free access to Reuters.com

This comes after Central Bank Governor Christopher Waller said on Monday that the US Federal Reserve should be prepared to raise rates by half a percentage point at every meeting until inflation is brought under control. read more

“The market is trying to find an endgame for Federer,” said Jack Janasievich, portfolio manager for Natixis Investment Management Solutions.

While lower commodity prices are good news for stocks in the long run, the impact of the report on OPEC and Russia in the energy sector may have stimulated the broader market a little on Tuesday.

“It’s something that keeps the market on edge,” Janasievich said. “When we started, the sector that elevated us was energy.”

See also  Balch Springs grass fire burns multiple homes, evacuations issued - NBC 5 Dallas-Fort Worth

According to initial data, the S&P 500 (.SPX) It lost 24.52 points or 0.59% to close at 4,133.72 points, while the Nasdaq joint (.IXIC) It lost 48.62 points, or 0.40%, to 12,082.51. Dow Jones Industrial Average (.DJI) 190.80 points or 0.57% to 33,006.27.

All three indices came together last week to break a decades-long losing streak.

Carol Schlieff, deputy chief investment officer at the BMO Family Office, said the stock market has been trading sideways for some time due to uncertainties, including Russia-Ukraine.

“Part of that is energy prices because on the edge they really affect the tendency of people to spend. People are actually noticing higher prices at the grocery store,” he said.

Earlier in the day, US consumer confidence continued to ease moderately amid high inflation and rising rates, while a separate reading showed US home price growth warmed up to record levels in March. read more

Other key data pending this week are monthly non-farm pay numbers for references in the labor market.

U.S.-listed shares of Yamana Gold Inc. rose after South African miner Goldfields Ltd. (GFIJ.J), Agreed to buy the Canadian mine in a $ 6.7 billion all-share deal. read more

Dexcom Inc (DXCM.O) Glucose monitoring system jumps after manufacturer denies report on merger talks with insulin corporation, insulin pump maker (PODD.O).

Sign up now for unlimited free access to Reuters.com

Report by Senate Curve, Anisha Sirkar, Devik Jain and Sruthi Shankar in Bangalore; Editing Marguerite Choi

Our standards: Thomson Reuters Trust Principles.

Leave a Reply

Your email address will not be published.