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Petroleum industry

Market Turmoil Continues as Federal Reserve's Caution and Oil Release Plan Weigh on Markets

Strategic Insights

— 1 min read

Market sentiment was weighed down by the Federal Reserve's cautious remarks and the joint plan by the Obama administration and the International Energy Agency (IEA) to release 60 million barrels of oil from emergency reserves. This led to a decline in crude prices and a downturn in the broader market, with the SPDR S&P 500 (SPY) and the Financial Select Sector SPDR (XLF) experiencing significant losses. The release of 60 million barrels of oil was a significant factor in the decline of crude prices, with gold also experiencing a significant drop.

Key Takeaways:

  • The Federal Reserve's cautious remarks had a significant impact on the market, leading to a downturn in the broader market.
  • The joint plan by the Obama administration and the IEA to release 60 million barrels of oil from emergency reserves weighed heavily on crude prices, with a 4.57% decline in crude prices.
  • The SPDR S&P 500 (SPY) and the Financial Select Sector SPDR (XLF) experienced significant losses, with the SPY down 1.07% and the XLF down 1.67%.
  • Red Hat Inc. (RHT) reported a better-than-expected Q1 revenue of $265 million and EPS of $0.24, leading to a 3.93% increase in its stock price.
  • The iShares QQQ (QQQ) was the only loser among the broad-market funds, with a 0.13% decline.
  • Technology Select Sector SPDR (XLK) and iShares Dow Jones US Technology (IYW) were lower, while First Trust Nasdaq 100 Technology (QTEC) was up 0.28%.
  • Commodities and Mining sector funds, including the SPDR Gold Shares (GLD) and the iShares silver trust (SLV), were also lower, while the United States Natural Gas Fund (UNG) declined by 3.28%.

Statistics:

  • The SPDR S&P 500 (SPY) was down 1.07%.
  • The Financial Select Sector SPDR (XLF) was down 1.67%.
  • Crude prices declined by 4.57% to $91.10 per barrel.
  • The iShares QQQ (QQQ) was down 0.13%.
  • Red Hat Inc. (RHT) reported Q1 revenue of $265 million.
  • The company expects Q2 revenue of $270 to $272 million, with EPS seen at $0.24 to $0.25 per share.

Sources:

  • "Active broad-market exchange-traded funds at mid-day's regular session" (MidnightTrader via COMTEX, Jun 23, 2011)
  • "SmarTrend Alert" (Comtex News Network, Inc., Jun 19, 2011)
  • "SmarTrend is a registered trademark of Comtex News Network, Inc." (Comtex News Network, Inc., 2004-2011)
  • "Copyright (C) 2011 MidnightTrader.com. All rights reserved." (MidnightTrader.com, 2011)

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