QBR.B:CC - Oil Spikes Taking Dow S&P with it
The NASDAQ Composite dipped Monday as a spike in oil prices added another threat to an economy already struggling from Federal Reserve rate hikes and recent turmoil in the banking sector.
The Dow Jones Industrials popped 336.16 points, or 1%, to 33,610.31. Chevron shares led the Dow higher, rising 3.9%.
The S&P 500 gained 17.04 points to 4,126.35.
The tech-heavy NASDAQ lost 27.65 points to 12,194.26.
The output cut from OPEC+, which is slashing 1.16 million barrels per day, sent oil prices soaring. West Texas Intermediate crude was 6.6% higher, while international benchmark Brent crude climbed 6%.
Traders are shedding optimism from recent market strength with the prospect of higher oil prices adding to fears of higher inflation and a looming recession.
Marathon Oil hiked 9%, while Halliburton rose 6.2%
All three major averages were positive in the first quarter, despite turmoil in the banking sector highlighted by the collapse of Silicon Valley Bank in March. The NASDAQ Composite led the way in the quarter with a gain of 16.8% while the S&P 500 rose 7% in the first three months of the year for its second-straight positive quarter. The Dow industrials lagged but still managed to grind out an advance of 0.4%.
The first week of the new quarter is a shortened one for Wall Street, as trading will be closed for Good Friday. However, there will be several key pieces of economic data for investors, including job openings data on Tuesday, ADP private payrolls report on Wednesday and the closely watched monthly jobs report on Friday.
Prices for the 10-year Treasury gained, lowering yields to 3.42% from Friday 3.48%. Treasury prices and yields move in opposite directions.
Oil prices ballooned $4.71 to $80.38 U.S. a barrel.
Gold prices strengthened $15.30 to $2,001.50 U.S. an ounce.