Wall Street Falling, oil prices fall after the increase in OPEC+/ Newslooks/ Washington/ J. Mansour/ Morning Edition/ US actions fell on Monday and oil prices fell to their lowest level in four years after OPEC+ announced that it would increase its production from June 1. The S&P 500 fell by 0.7 %, while oil fell below 60 dollars per barrel, which shaken up the energy values. Investors are also struggling with uncertainty linked to customs tariffs and the next decision of the Federal Reserve on rates.
Fall of Wall Street and oil prices: Quick overview
- S&P 500 down 0.7 %: Significant losses have affected almost 75 % of listed shares.
- The price of oil falls below $ 60: US crude oil fell from 1.5 % to 57.42 dollars, its lowest level in four years.
- OPEC+ increases its production: The group will increase its production by 411,000 xnumx barrels per day from June.
- Energy actions fall: Exxonmobil drops 2.4% due to unprofitable oil fears.
- Buffett will resign: Berkshire Hathaway fell 5.5% while Warren Buffett announces his retirement.
- The Fed’s decision on rates is looming: The central bank should maintain its stable rates despite the risk of inflation.
- Price turbulence continue: Trump’s trade policy changes fuel market uncertainty.
- Decrease in Nasdaq and Dow Jones: The Nasdaq drops by 0.8%, the DOW loses 164 points in morning exchanges.
- Treasury yields are stable: The 10 -year yield increases to 4.32 %.
- The feeling of investors vacillates: The market is faced with mixed signals on inflation and trade.
Wall Street falls and oil prices fall after the increase in OPEC+ production
Deep look
Wall Street started the week with losses on all the main indices, and oil prices have dropped to their lowest levels in four years after OPEC+ has announced its intention to increase its production From next month. The group of eight oil producing countries revealed this weekend that it Increase the production of 411,000 1 barrels per day from June XNUMXexerting pressure on the oil markets already under tension in a context of slowing down demand.
American crude oil has dropped 1.5% at $ 57,42 per barrelThe share price fell under the threshold of 60 dollars, a level that many analysts consider the profitability threshold for many producers. The night fall reached up to 4 % before bouncing slightly. This sharp decline led to a fall in energy values, ExxonMobil and Baisse de 2.4 % At the start of the exchanges.
Widest The S&P 500 fell by 0.7 %Although the The Dow Jones Industrial AVERrage index fell 164 points (0.4%)as well as, The Nasdaq Composite lost 0.8 %About three quarters of the S&P 500 shares were in the red on Monday morning, stressing the general discomfort of investors.
Among the most important titles, we find Fall of 5.5 % at Berkshire Hathawaytriggered by news according to which Warren Buffett will leave his CEO post by the end of the year. The 94 -year -old investment icon will retain his post as president, but this announcement has caused a shock wave in the financial world and has weighed on the confidence of investors.
The slowdown occurred despite the recent dynamic of the S&P 500 – the reference index had just finished a Sequence of nine consecutive victories.
Global markets also react to the latest developments in the persistent trade tensionstriggered by The massive appeal to customs tariffs by President Donald Trump. While some of the most severe rates provided for an implementation in April have been postponed by three months, Taxes targeting China remain in forceL’ uncertain political orientation continues to shake up the markets and decision -makers of central banks.
-Despite signs of inflation attenuation, it is unlikely that the federal reserve will drop its interest rates at its meeting this week. We are rather expecting what she Maintain its key rate at 4.3 % Pending clarification on inflation and economic benefits of the trade war, the Fed lowered its rates three times in 2024, but has since adopted a more prudent position.
The president of the Fed, Jerome Powell, and his team remain concerned that Inflation could turn back onespecially in the light of increase in import costs due to customs tariffs. Analysts claim that Trump’s intermittent approach in terms of trade has made business and consumers planning, leaving uncertain economists about broader economic trajectory.
“The markets hate uncertainty, and the approach of this administration in terms of customs tariffs creates a lot,” said an analyst.
Elon Muskwho now directs the Department of Government Effectiveness of the Trump Administration, added to friction last week by criticizing the $ 2.5 billion renovation project in the federal reserve. Musk wondered if taxpayers’ money was spent wisely, arousing a new debate on the credibility and independence of the Fed.
Moreover, The yields of treasury bills remained stablewith a slightly increased yield to reach 4.32% against 4.31% Fridaysuggesting a wait -and -see approach on the part of bond investors before the Fed’s decision on rates.
While last week offered relief to investors encouraged by temporary delays in customs tariffs, the combination of Volatility of the oil market, management changes et uncertainty of monetary policy Once again, short -term market prospects.
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