Sliding oil prices weigh on Wall Street as US stocks finish mixed-to-lower.
US stocks held mostly lower on Monday, as sliding oil prices weighed on energy shares.
The large-cap S&P 500 Index (NYSEARCA:SPY) declined 0.2% to close at 2,373.47, with seven of 11 sectors finishing in negative territory.
Energy shares fell 0.1%. Utilities stocks ended 0.7% lower, while financials declined 0.9%.
The Dow Jones Industrial Average (NYSEARCA:DIA) traded within a narrow range before closing flat at 20,905.86. Meanwhile, the technology-heavy Nasdaq Composite Index (NYSEARCA:QQQ) pared losses to end flat at 5,901.53.
The Chicago Board Options Exchange (CBOE) Volatility Index (NYSEARCA:VXX), Wall Street’s preferred measure of market uncertainty, was little changed on Monday. The volatility gauge settled at 11.34, well below the historical trading range.
In commodities, oil prices continued lower as rising US shale output threatened to undermine global efforts to rein in crude supplies. The West Texas Intermediate (WTI) benchmark for US crude futures fell 42 cents, or 0.9%, to settle at $48.36 a barrel on the New York Mercantile Exchange. Brent crude, the international futures benchmark, slipped 8 cents, to 0.2%, to $51.68, a barrel.
On Friday, energy services provider Baker Hughes reported that active US oil rigs rose for a ninth consecutive week.
After three days of losses, the US dollar rose slightly against a basket of other major currencies. The US dollar index, a weighted average of the greenback against a basket of major peers, edged up 0.1% to 100.40.
The Final Word: Oil prices have declined more than 10% from their February peak, as oversupply worries continued to undermine investor confidence. Volatile oil prices will continue to weigh on energy shares as the threat of US shale remains in focus.