US stocks fall, oil prices retreat after peak
Shares were down early in Tuesday as trading in the United States resumed after the Independence Day holiday and investors reassess after record highs last week.
The S&P 500 Index was down 0.5% at 10:30 a.m. Eastern time. The Dow Jones Industrial Average fell 0.9% and the Nasdaq Composite fell 0.1%.
Oil prices retreated after surging overnight when talks between OPEC cartel members and allied oil-producing countries broke amid a standoff with the UAE over production levels . The benchmark US crude oil price fell 1% to $ 74.49; it previously stood at $ 76.98, the highest level since November 2014.
With oil prices pushing towards $ 80 a barrel, it “increases the risk of a price war if the conflict escalates, as in March of last year,” ActivTrades’ Harpreet Bhal said in a comment. .
The market is currently in a summer lull with investors having little action until next week when the corporate earnings season resumes. US markets have a shortened holiday week this week, as the markets were closed on Monday. The focus remains primarily on inflation and what the Federal Reserve will do if inflation remains high.
The yield on the benchmark 10-year US Treasury bond was down to 1.37%, a sharp drop from 1.44% on Friday and the lowest level since February.
Shares of ride-sharing company Didi Global fell 20%. This follows a 5% drop on Friday after China announced it would investigate the cybersecurity practices of three ride tech companies, including Didi. The government also announced cybersecurity reviews of Full Truck Alliance, the operator of two truck logistics platforms, and Kanzhun Ltd., operator of an online recruiting firm. Full Truck fell 20% and Kanzhun fell 11%.