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Wall Street closed higher on Monday as market participants focused on the central bank's statement and Chairman Jerome Powell's remarks for clues about future policy moves amid a spike in oil prices due to an impending supply shortfall. All three major stock indexes ended in positive territory.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.2%, or 75.66 points, to close at 38,790.43. Notably, 13 components of the 30-stock index ended in negative territory, while 17 were in green. The major gainer of the blue-chip index was Salesforce, Inc. (CRM - Free Report) , after its stock price surged 2.1%. Salesforce currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The tech-heavy Nasdaq climbed 0.8% or 130.27 points to finish at 16,103.45.
The S&P 500 gained 0.6% to end at 5,149.42. Four out of the 11 broad sectors of the benchmark ended in positive territory, while seven were in the negative zone. The Communication Services Select Sector SPDR (XLC), the Consumer Discretionary Select Sector SPDR (XLY) and the Technology Select Sector SPDR (XLK) gained 1.8%, 0.5% and 0.3%, respectively, while the Real Estate Select Sector SPDR (XLRE) declined 0.7%.
The fear-gauge CBOE Volatility Index (VIX) decreased 0.6% to 14.33. A total of 11.16 billion shares were traded on Monday, lower than the last 20-session average of 12.41 billion. Advancers outnumbered decliners on the NYSE by a 1.17-to-1 ratio. On Nasdaq, a 1.26-to-1 ratio favored advancing issues. The S&P 500 posted 41 new 52-week highs and one new low, and the Nasdaq Composite recorded 102 new highs and 131 new lows.
Oil Prices Spike as Supply Shortfall Looms
Oil prices surged to their highest level of the year on Monday, with West Texas Intermediate jumping nearly 2% to surpass $82.50.
The International Energy Agency (“IEA”) surprised the market with a forecast of a 300,000 barrels per day supply shortage for the year. This marks a change from its prior projection of an 800,000 barrels per day surplus.
This shift was influenced by a rise in demand by 1.7 million barrels per day in the first quarter and an expected production decrease of 870,000 barrels per day due to OPEC+ cuts.
Furthermore, attacks by rebels in the Red Sea have disrupted shipping routes, forcing tankers to take longer paths and resulting in a buildup of oil inventory at sea. The IEA also noted that onshore global oil reserves are at their lowest levels in eight years.
In these changing supply and demand dynamics, the U.S. Energy Information Administration has updated its forecast for the country. Gasoline prices this year are expected to be around $3.50 per gallon, an increase of 20 cents from its previous estimation.
FOMC in Focus
The two-day Federal Open Market Committee (“FOMC”) meeting is set to commence on Tuesday and conclude with an announcement on Wednesday.
As per the CME FedWatch Tool, there's a 99% chance that the Fed will maintain the interest rates during this week’s meeting. However, there has been a decrease in expectations for a rate cut in June now hovering around 55%.
Investors are keenly watching the Fed’s decision amid concerns about increasing inflation. February saw core and wholesale inflation readings higher than anticipated, causing some worry among investors. This unexpected rise in inflation has led to speculation that the central bank may lean toward keeping interest rates at levels for a longer period.
The Federal Reserve’s stance on interest rates holds implications for markets and the broader economy. Market participants will be closely watching the central bank's statement and Chairman Jerome Powell's remarks for clues about future policy moves.
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Stock Market News for Mar 19, 2024
Market News
Wall Street closed higher on Monday as market participants focused on the central bank's statement and Chairman Jerome Powell's remarks for clues about future policy moves amid a spike in oil prices due to an impending supply shortfall. All three major stock indexes ended in positive territory.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.2%, or 75.66 points, to close at 38,790.43. Notably, 13 components of the 30-stock index ended in negative territory, while 17 were in green. The major gainer of the blue-chip index was Salesforce, Inc. (CRM - Free Report) , after its stock price surged 2.1%. Salesforce currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The tech-heavy Nasdaq climbed 0.8% or 130.27 points to finish at 16,103.45.
The S&P 500 gained 0.6% to end at 5,149.42. Four out of the 11 broad sectors of the benchmark ended in positive territory, while seven were in the negative zone. The Communication Services Select Sector SPDR (XLC), the Consumer Discretionary Select Sector SPDR (XLY) and the Technology Select Sector SPDR (XLK) gained 1.8%, 0.5% and 0.3%, respectively, while the Real Estate Select Sector SPDR (XLRE) declined 0.7%.
The fear-gauge CBOE Volatility Index (VIX) decreased 0.6% to 14.33. A total of 11.16 billion shares were traded on Monday, lower than the last 20-session average of 12.41 billion. Advancers outnumbered decliners on the NYSE by a 1.17-to-1 ratio. On Nasdaq, a 1.26-to-1 ratio favored advancing issues. The S&P 500 posted 41 new 52-week highs and one new low, and the Nasdaq Composite recorded 102 new highs and 131 new lows.
Oil Prices Spike as Supply Shortfall Looms
Oil prices surged to their highest level of the year on Monday, with West Texas Intermediate jumping nearly 2% to surpass $82.50.
The International Energy Agency (“IEA”) surprised the market with a forecast of a 300,000 barrels per day supply shortage for the year. This marks a change from its prior projection of an 800,000 barrels per day surplus.
This shift was influenced by a rise in demand by 1.7 million barrels per day in the first quarter and an expected production decrease of 870,000 barrels per day due to OPEC+ cuts.
Furthermore, attacks by rebels in the Red Sea have disrupted shipping routes, forcing tankers to take longer paths and resulting in a buildup of oil inventory at sea. The IEA also noted that onshore global oil reserves are at their lowest levels in eight years.
In these changing supply and demand dynamics, the U.S. Energy Information Administration has updated its forecast for the country. Gasoline prices this year are expected to be around $3.50 per gallon, an increase of 20 cents from its previous estimation.
FOMC in Focus
The two-day Federal Open Market Committee (“FOMC”) meeting is set to commence on Tuesday and conclude with an announcement on Wednesday.
As per the CME FedWatch Tool, there's a 99% chance that the Fed will maintain the interest rates during this week’s meeting. However, there has been a decrease in expectations for a rate cut in June now hovering around 55%.
Investors are keenly watching the Fed’s decision amid concerns about increasing inflation. February saw core and wholesale inflation readings higher than anticipated, causing some worry among investors. This unexpected rise in inflation has led to speculation that the central bank may lean toward keeping interest rates at levels for a longer period.
The Federal Reserve’s stance on interest rates holds implications for markets and the broader economy. Market participants will be closely watching the central bank's statement and Chairman Jerome Powell's remarks for clues about future policy moves.