Wall Street closes lower amid slumping crude oil prices and profit taking
|After starting the day lower, major equity indexes in the U.S. remained under pressure as investors cashed in their profits from yesterday's record-setting rise and falling crude oil prices hurt the market sentiment.
The barrel of West Texas Intermediate fell below the $43 handle for the first time since mid-November as the rising oil production in Libya revived the concerns over the global supply glut, pushing the S&P energy index .SPNY 1% lower.
Stephen Massocca, Senior Vice President at Wedbush Securities in San Francisco, explained to Reuters that the drop in oil prices also appeared to affect the broader market beyond energy as a lot of stocks that have absolutely nothing to do with oil are impacted by this.
The Dow Jones Industrial Average lost 56.65 points, or 0.15%, to 21,472.34, the S&P 500 dropped 12.2 points, or 0.50%t, to 2,435 and the Nasdaq Composite fell 48.13 points, or 0.77%, to 6,190.88.
Headlines from the U.S. session
- Fed's Kaplan: Technology, globalization is holding down U.S. inflation
- Fed's Kaplan: Inflation has been notably sluggish, though that's not all bad
- US Dollar consolidates daily gains near mid-97s
- US House Speaker Ryan: Tax reform is key to U.S. economic growth
- Qatar Petroleum CEO: Qatar crude production will rise by 10%, or 400,000 bpd, in 5 to 7 years
- OPEC, non-OPEC compliance with oil output cuts in May hit 106% - Reuters
- Fed’s Evans: Could take over 3-years to get balance sheet down - CNBC
- Philly Fed: Nonmanufacturing business activity continued to expand in June
- US: Current-account deficit increased to $116.8 bln in Q1 2017
- Fed's Rosengren: Low rates make fighting future recessions tougher
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