Stocks trade cautiously after oil shocks hit the markets
Stocks impacted moderately following Saudi oil attack
Bulltick Capital Markets & Kathryn Rooney Vera discuss why the US should not be too concerned about the recent oil explosion. Vera says other foreign players, such as China, will be affected to a much greater extent.
U.S. shares point to a lower opening, and add to the reductions that shares suffered to start the week.
Dow Industrial and S&P 500 futures are down 0.1 percent, while Nasdaq futures are down 0.2 percent.
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An attack on Saudi Arabia's largest oil production plant caused crude prices to soar, leading to the sale of airlines and other fuel-dependent industries.
The US and international crude oil benchmark portfolios fell slightly after the vault of more than 1[ads1]4 percent on Monday.
On Wall Street, the Dow Jones Industrial Average fell 0.5 percent, breaking a streak of eight consecutive wins. The S&P 500 lost 0.3 percent, the biggest decline in two weeks. Nasdaq lost 0.3 percent.
| Ticker | Security | Last | Change | % Chg |
|---|---|---|---|---|
| In: DJI | DOW JONES AVERAGES | 27076.82 | -142.70 [19659018] -0.52% | |
| SP500 | S&P 500 | 2997.96 | -9.43 | -0.31% |
| I: COMP | NASDAQ COMPOSITE INDEX | 8153.542864 [1965901] 19659018 ] -0.28% |
General Motors dropped 4.3 percent after more than 49,000 United Auto Workers members went on strike. It was not clear how long the walkout would last.
| Ticker | Security | Last | Change | % Chg |
|---|---|---|---|---|
| GM | GENERAL MOTORS COMPANY | 37.21 | -1.65 | -4.25% |
This week's headline event is the Federal Reserve's policy meeting. Investors are confident that the central bank will cut short-term interest rates by a quarter of a percentage point to a range from 1.75 percent to 2 percent.
It would be the second such cut in two months as the Fed tries to protect the economy from a global downturn and the effects of the US-China trade war.
The meeting begins on Tuesday and ends with the interest rate decision on Wednesday.
CLICK HERE TO READ MORE ON FOX BUSINESS [19659004] Japanese Nikkei ended the day up 0.1 percent for a tenth straight on payday. The Shanghai Composite Index dropped 1.7 percent. Hang Seng in Hong Kong ended the day with 1.2 percent after the credit rating agency Moody's downgraded the city. Fitch Rating did it earlier. Hong Kong CEO Carrie Lam said the downgrade was "disappointing."
In European trade, London's FTSE added 0.1 percent, Germany's DAX slipped 0.1 percent and France's CAC gained 0.2 percent.
The Associated Press contributed to this article.
