S & P down despite rising oil fueling energy rally By Investing.com

Investing.com – Stocks fell globally on Monday as a result of drone attacks on oil facilities and oil fields in Saudi Arabia.

But energy stocks have jumped, their biggest leap in a day in almost 30 years.

The decline was 0.31%, closing below 3,000 for the first time in four days.

They were down 0.53% and down 0.28%.

The market pullback came after three consecutive weeks of gains for the main indices, in a rally based on the hope that the trade war between the United States and China could subside. Instead, the tension in the Middle East has once again asserted as Saudi Arabia produces about 10% of world production.

The Trump administration has blamed the attack on Iran. The Iranians have denied the accusations. Fighters in Yemen, engaged in a war with the Saudis, have claimed responsibility.

At the same time, Israeli voters go to the polls Tuesday as part of elections organized by Prime Minister Benjamin Netanyahu, who had not been able to form a government after an election. previous year cost him his majority in the Knesset.

The S & P 500 has recorded heavy losses for stocks vulnerable to energy price fluctuations, such as American Airlines (NASDAQ :); United Airlines (NASDAQ 🙂 and cruise operator Carnival (NYSE :).

But the losses were offset by big gains for Apache (NYSE :), Cimarex Energy (NYSE 🙂 and Helmerich and Payne NYSE :). In fact, energy stocks were by far the best performances of the S & P 500.

At the same time, General Motors (NYSE :), hit by a labor strike, and News Corp (NASDAQ 🙂 were down.

The drop in the market touched nearly $ 63 per barrel and crude exceeded $ 69.

Investors have also sought to protect themselves from geopolitical risk. Bond yields also fell, reflecting the flight to safety. The Treasury yield fell to 1.849% against 1.899% Friday.

The US Federal Reserve begins a two-day meeting on Tuesday and is expected to cut its key policy interest rate by a quarter point on Wednesday.

The stock market slump was roughly global, with shares falling in markets in countries such as Germany, France, China, India and Brazil. The Japanese stock market has been closed.

The dollar is appreciated against major currencies.

The market drop left the decline of about 1% from its July record. It finished down 1.17% from its July peak. Nasdaq is down 2.2% from the peaks this summer.

Apache (NYSE :), Contract Driller Helmerich and Payne Inc. (NYSE :), Devon Energy Corporation (NYSE 🙂 and Cimarex Energy (NYSE 🙂 were among the top winners.

American Airlines (NASDAQ :), Amcor packaging company (NYSE :), Sealed air (NYSE 🙂 and General Motors (NYSE 🙂 were among the weakest players in the S & P 500.