NASDAQ 100, Dow Jones, S&P 500 News: Crude’s Climb Boosts Chevron, Dow 30

Highlights

• Oil prices jump, Dow component Chevron rises, Nasdaq drops.
• Oracle faces worst performance since 2002.
• U.S. crude surge favors energy sector.

Mixed Performance in Major U.S. Indices Amid Oil Price Surge

U.S. stock indices presented varied outcomes on Tuesday. With oil prices reaching their peak for 2023, concerns over a decelerating global economy are escalating. The Dow Jones Industrial Average experienced a modest rise of 0.23% to 34,743.94, bolstered by Chevron stocks. In contrast, the S&P 500 Index and the tech-centric Nasdaq declined by 0.26% and 0.62%, respectively.

Oracle’s Unanticipated Slide

Oracle emerged as the most significant underperformer in the S&P 500, with a 13% tumble after reporting less-than-anticipated revenue and guidance. The $12.45 billion revenue didn’t meet the forecasted $12.47 billion. Consequently, Oracle’s shares are racing towards their worst performance since 2002. This drop also pulled down other cloud competitors, including giants like Amazon, Alphabet, and Microsoft.

Sector Analysis: IT Lags, Chips Shine

The information technology sector trailed the S&P 500, dipping by 1.2%. Major contributors to this slump included Oracle and Apple, with the latter declining 1.5%. Contrarily, semiconductor stocks offered a silver lining. Nvidia, Qualcomm, and Intel observed gains of 0.4%, 1.2%, and 1.9%, respectively. Apple’s dip is also noteworthy as it precedes the anticipated iPhone model launch.

Crude Oil’s Ascendancy Boosts Energy Sector

U.S. crude prices reached unprecedented levels since November 2022. West Texas Intermediate crude oil witnessed a surge to nearly $89 a barrel, an impressive leap from March’s $66. This rise favored the energy sector, marking it as Tuesday’s top performer. The Energy Select Sector SPDR Fund experienced a 2.1% surge. Leading the gains were Occidental Petroleum, APA Corporation, and Marathon Oil.

Short-Term Forecast: Caution Ahead of Key Data

As the financial week progresses, all eyes are set on pivotal inflation data. Expected releases include the consumer price index on Wednesday and the producer price index on Thursday. Additionally, the European Central Bank’s policy meeting is on the radar. If the unveiled data deviates negatively from expectations, market turbulence is likely on the horizon, leaning towards a bearish sentiment.