Wall Street slip, crude gains on Russia tensions, rate hike worries

All three major US stock indexes ended red, with megacap momentum stocks pulling the tech-heavy Nasdaq to the sharpest decline, down 1.16%.

The Dow Jones Industrial Average fell 12.72 points, or 0.04%, to 33,714.71, the S&P 500 lost 19.51 points, or 0.45%, to 4,328.82 and the Nasdaq Composite dropped 156.74 points, or 1.16%, to 13,335.78.

“We’re having a bit of a correction, with (Fed Chair Jerome) Powell still talking about keeping rates higher for longer,” reported Reuters quoting Paul Nolte, senior wealth adviser and market strategist at Murphy & Silvest in Elmhurst, Illinois

“A lot of those big tech companies have had quite a run, so we’re seeing a rotation into smallcaps and value, which are doing well because they are all very inexpensive today,” Nolte added.

In Treasuries, US Treasury yields mostly edged lower as investors grappled the Fed’s “higher for longer” message even as the economy begins to slow. Benchmark 10-year notes last rose 7/32 in price to yield 3.7134%, from 3.739% late on Friday. The 30-year bond last rose 4/32 in price to yield 3.8142%, from 3.82% late on Friday.

In cryptocurrencies, the Bitcoin fell 0.9% to $30,115.19, while Ether fell 2.4% to $1,849.31.

In currencies, the dollar index fell 0.14%, with the euro up 0.16% to $1.0906. The Japanese yen strengthened 0.16% versus the greenback at 143.50 per dollar, while Sterling was last trading at $1.2712, up 0.01% on the day.

In energy, Oil prices moved higher as political turmoil in Russia stoked concerns over supply disruption. The US crude rose 0.30% to settle at 69.37 per barrel, while Brent settled at $74.18 per barrel, up 0.45% on the day.

Gold firmed, inching off from the previous session’s three-month low as geopolitical reverberations from Russia outweighed Fed hawkishness. Spot gold added 0.1% to $1,922.39 an ounce.

Emerging market stocks lost 0.26%. MSCI’s broadest index of Asia-Pacific shares outside Japan closed 0.35% lower.

Canada

Canada’s main stock index rallied on Monday as higher oil prices boosted energy shares and investors awaited domestic inflation data that could offer clues on the Bank of Canada’s policy outlook.

The Toronto Stock Exchange’s S&P/TSX composite index ended up 169.09 points, or 0.9%, at 19,587.32, after posting on Friday its lowest closing level in three months.

Europe shares

European markets closed slightly lower Monday pulled down by healthcare stocks, defense shares dropped following the Russian events. Investors digested weak economic signals after a downbeat week.

The pan-European Stoxx 600 index provisionally closed 0.1% lower to end a choppy session. Chemicals led gains, up 0.9%, as oil and gas stocks climbed 0.8%. Health care stocks saw the biggest loss, down 1.1%. MSCI’s gauge of stocks across the globe shed 0.26%.

Asian markets

In Asia, Hong Kong’s Hang Seng Index was down 0.51% at 18,794.13. China’s Shanghai Composite was 1.48% down at 3,150.62

Japan’s Nikkei 225 was down 0.25% at 32,698.81.

Australia’s S&P/ASX 200 index finished 0.29% down at 7,078.70. New Zealand’s benchmark S&P/NZX 50 index closed lower 0.84% to 11,638.68.

(With inputes frpm agencies)

Updated: 27 Jun 2023, 03:09 AM IST