NEW YORK (Reuters) – Wall Street stock prices increased on Tuesday, while oil prices fell under continuing worries of weakening global demand.
Traders working on the floor at the New York Stock Exchange (NYSE) in New York City, USA, November 12, 2018. REUTERS / Brendan McDermid
The US benchmark S & P 500 equity index .SPX became negative after the energy stocks were depressed by falling Brent and US rough futures. Oil prices plummeted 7 percent, with American crude oil reaching the lowest level in a year.
Brent and US crude oil broke out on Monday after US President Donald Trump put pressure on OPEC not to cut supply to drive prices up. Both rough benchmarks have dropped more than 20 percent since the high at four years high in early October.
"It's like a run on the bank," said Phil Flynn, an analyst at Price Futures Group in Chicago. "It comes so far that it no longer seems to be fundamentals, but a total collapse of the price."
American natural gas futures, however, have risen most since November 2014 to forecasts for colder weather.
Previously, US equities had risen after White House adviser Larry Kudlow had said that Washington had resumed trade negotiations with China and characterized development as "very positive." Technology shares bounced back a day after a turnaround that caused the S & P 500 to drop nearly 2 percent.
The US dollar index .DXY, which has risen steadily as the trade dispute between the US and China escalated, fell by 0.2 percent.
"As far as we get a move in the pricing debate, the market will consider that positive," said Bucky Hellwig, senior vice president at BB & T Wealth Management in Birmingham, Alabama.
The pound GBP = D3 rose by 0.8 percent to $ 1,2953 after reports that the UK and the European Union had agreed on the text of a Brexit agreement and that British Prime Minister Theresa May would hold a cabinet meeting on Wednesday.
The euro EUR = EBS also rose from a low of 16 months, rising from 0.4 to $ 1.1264, but the gain was capped by concerns about the Italian budget and the bleak figures of German investor sentiment.
The Dow Jones Industrial Average .DJI fell 112.53 points, or 0.44 percent, to 25,274.65, the S & P 500.SPX lost 3.22 points, or 0.12 percent, to 2,723 and the Nasdaq Composite .IXIC added 3.79 points, or 0.05 percent, up to 7,204.66.
The MSCI measure for equities around the world .MIWD00000PUS fell 0.12 percent.
Benchmark 10-year US Treasury notes US10YT = RR took 12/32 in price to deliver 3.1452 percent, from 3.189 percent late on Friday. The Treasury market was closed on Monday for the Veteran Day holiday.
The US CLc1 decreased by 7.88 percent to $ 55.21 per barrel and the global benchmark Brent crude LCOc1 dropped $ 5.12 per barrel to a session low of $ 65 per barrel after the settlement.
But the gas futures on the first month of NGc1 on the New York Mercantile Exchange rose by 7.7 percent.
Reporting by April Joyner; Additional reporting by David Gaffen and Stephen Culp in New York and Tom Finn and Marc Jones in London; Edited by David Gregorio and Cynthia Osterman