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US stocks end in the red

Capital Market 

Dow ends its eight-session winning streak

US stocks ended lower on Monday, 16 September 2019 after a weekend attack on Saudi Arabia's oil-production facilities unsettled global markets, halted the Dow's eight-session winning streak and sent crude prices rocketing higher. The attacks played out in the Middle East as stocks were on the brink of record highs ahead of eagerly awaited central-bank meetings, headlined by the Federal Reserve's interest-rate decision on Wednesday.

The Dow Jones Industrial Average fell 142.7 points, or 0.5%, to close at 27,076.82, ending an eight-day winning streak. The S&P 500 index shed 9.43 points, or 0.3%, to finish at 2,997.96, while the Nasdaq Composite Index dropped 23.17 points, or 0.3%, to end at 8,153.54.

Stocks dropped after an attack on Saudi Arabia's oil refineries sent oil prices up nearly 15% and escalated geopolitical tensions.

The attack knocked about 5.7 million barrels per day out of production, leading to the biggest one-day gain in WTI crude since 2008. The largest-ever disruption to oil production, has momentarily overshadowed a much-anticipated two-day Fed meeting that gets under way on Tuesday.

Today's winning groups included the S&P 500 energy sector. The S&P 500 real estate and utilities sectors also finished higher, helping ease the losses from the materials, consumer discretionary, and consumer staples sectors.

Economic data was sparse on Monday. The Empire State Manufacturing Survey for September declined to 2.0 ( consensus 5.5) from the prior month's reading of 4.8.

Bullion prices ended substantially higehr at Comex on Monday, 16 September 2019. Gold futures finished solidly higher at their highest price in just over a week, after an attack on Saudi Arabian oil production sent oil values skyrocketing and investors turning to haven assets, including bonds and precious metals. However, attention will divert to the Federal Open Market Committee's two-day policy meeting which begins on Tuesday. Market expects to see a 25 basis point interest-rate cut, with the market's focus on the Fed statement following the decision.

December gold on Comex gained $12, or 0.8%, to settle at $1,511.50 an ounce, after registering on Friday a weekly decline of 1.1%.

Silver for December delivery added 45.7 cents, or 2.6%, to settle at $18.026 an ounce, following a weekly loss of 3%.

Crude oil futures on Monday, 16 September 2019 marked the sharpest daily rise in more than a decade after a weekend attack on major crude facilities in Saudi Arabia threatened to create a supply crunch.

West Texas Intermediate crude for October delivery, the U.S. benchmark contract, gained 14.7%, or $8.05, at $62.90 a barrel.

November Brent crude jumped $8.80, or 14.6%, to trade at $69.02 a barrel.

Looking ahead, investors will receive Industrial Production and Capacity Utilization for August, the NAHB Housing Market Index for September, and Net Long-Term TIC Flows for July on Tuesday.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, September 17 2019. 10:38 IST