The S&P 500 Index is down 0.88% while the Dow Jones Industrial Average fell 1.06%, and the Nasdaq 100 Index dropped 1.03% in the wake of rising crude oil prices. WTI crude is up over 8% today after Iraq suspended oil terminal activity due to an attack by Iran, which is also causing production and transport disruptions in the Middle East. Iran’s Supreme Leader indicated escalated attacks in the region, contributing to market volatility.
Despite the International Energy Agency’s decision to release 400 million barrels from emergency stockpiles, global oil supply disruptions are significant, with a reported 7.5% cut due to the conflict. The U.S. trade deficit narrowed to $54.5 billion, and initial jobless claims fell to 213,000, showing some labor market resilience. In terms of earnings, 74% of S&P 500 companies that have reported so far exceeded expectations, with overall Q4 earnings growth projected at 8.4%.
Overseas markets also faced declines, with the Euro Stoxx 50 down 0.86% and Japan’s Nikkei 225 closing down 1.04%. As for interest rates, the 10-year T-note yield climbed to a five-week high of 4.249%, influenced by rising inflation expectations tied to the oil price surge.
