Wall Street: the S&P 500 rose strongly due to the rise in oil but Tesla sank

Wall Street, the New York Stock Exchange, the week began uneven this Monday, due to the concern generated by the increase in oil prices, which poses a new threat to the US economy and possible changes in forward rate policy.

So, S&P 500 closed higher on Monday, boosted by energy stocks following surprise cuts to OPEC+ group oil production targets, while Tesla fell after its first-quarter electric vehicle deliveries disappointed investors.

Tesla Inc’s shares tumbled on growing concerns about the electric vehicle maker’s profit marginsafter aggressive price cuts resulted in a modest increase in quarterly deliveries.

The S&P 500 energy sector index rose after Saudi Arabia and other OPEC+ oil producers announced unexpected production cutswhich could push oil prices towards $100 a barrel.

Shares of oil companies Chevron Corp, Exxon Mobil Corp and Occidental Petroleum Corp rose sharply.

However, the prospect of higher oil prices compounded inflation concerns on Wall Street, just days after cooling prices raised expectations that the US Federal Reserve may soon end its tightening campaign.

“The decision to cut output is a headwind for inflation…and so overall we’re seeing a ‘risk aversion’ bias,” said Terry Sandven, chief equity strategist at US Bank Wealth. Management.

Big growth stocks such as Amazon.com Inc , Microsoft Corp and Nvidia all fell, after strong gains in the third quarter.

Trader bets were mostly on a 25 basis point rate hike in May, with the probability of a pause standing at 44%, according to CME Group’s Fedwatch tool.

According to preliminary closing figures, the S&P 500 Index gained 15.20 points, or 0.37%, to 4,124.51, while the Nasdaq index was down 32.45 points, or 0.27%, at 12,189.45. . Meanwhile, the Dow Jones Industrial Average added 327.00 points, or 0.98%, to 33,601.15.