Wall Street registers losses due to the rise in oil prices

Wall Street registers losses due to the rise in oil prices
September 12, 2023 – 11:58

According to data from FactSet, crude oil prices in the United States reached their highest level since November of last year.

New York Stock Exchange

Wall Street falls this Tuesday dragged by the increase in oil priceswhile the actions of Oracle experience a significant drop in 10%, draggingThe technological index that, this Monday, posted gains driven by Tesla.

He Dow Jones Industrial Average falls 0.3%. He S&P 500 is also affected and falls by 0.5%, and the Nasdaq Composite registers a decrease of 0.5%.

The surprising 10% drop in Oracle shares was due to the release of weaker-than-expected revenue and revenue forecasts. The software company reported revenue totaling $412.45 billion, below the $12.47 billion that analysts surveyed by LSEG, formerly known as Refinitiv, had forecast. IsThis decline also impacted other competing companies in the cloud spaceas: Amazon, Alphabet (Google’s parent company) and Microsoft, which also experienced drops in their shares.

Wall Street: between the fall of Oracle and oil prices

Furthermore, the increase in oil prices raised concerns about inflation and the global economic slowdown. According to FactSet data, crude oil prices in The United States reached its highest level since November of last year.

Regarding economic indicators, the NFIB index of small businesses registered a decrease, reaching 91.3which represents a decrease of 0.6 points and is slightly above below estimate of 91.5 of the Dow Jones.

These movements in the market occurred after a positive day on Wall Street, where the Nasdaq Composite led with an increase of 1.1%while the S&P 500 and the Dow registered increases of 0.7% and 0.3%, respectively. It was the second positive session for the S&P 500 and Nasdaq, and the third for the Dow.

In the economic calendar, the publication of the price index is expected to consumption for Wednesday and the industrial price index for Thursday. This data precedes the Federal Reserve’s monetary policy meeting next week.

According to CME Group’s FedWatch tool, that monitors futures prices in the markets, the probability that the Fed will maintain interest rates is 93%. The Wall Street Journal recently reported that there is a consensus within the Federal Reserve not to raise rates this month and that there is less urgency to make additional increases throughout the year.

Source: Ambito

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