U.S. Stocks Plummet Amid Rising Oil Prices and Poor Retail Sales

Strategic Insights -

U.S. stock markets closed at their session lows on Wednesday, as investors grew increasingly concerned over rising oil prices and a Commerce Department report indicating a sharp decline in retail sales. The Dow Jones Industrial Average and Nasdaq composite index both suffered losses, with Intel's revised gross-margin targets exacerbating the decline. Meanwhile, oil prices jumped to their highest level since June 1, and the 10-year Treasury note experienced a significant drop in value, causing its yield to rise.

Key Takeaways:

  • U.S. stocks closed at their session lows on Wednesday, with the Dow Jones Industrial Average falling 38.79 points, or 0.38 percent, to 10,208.80.
  • The Commerce Department reported a 1.1 percent decline in retail sales in June, the highest decline in 16 months.
  • Intel lowered its gross-margin targets due to inventory issues, contributing to the decline in tech stocks.
  • Oil prices jumped $1.53 to close at $40.97 a barrel, the highest level since June 1.
  • The Nasdaq composite index lost 16.78 points, or 0.87 percent, to close at 1,914.88.
  • The Standard and Poor's 500-stock index gave up 3.67 points, or 0.33 percent, to 1,111.47.
  • The 10-year Treasury note experienced a significant drop in value, causing its yield to rise to 4.482 percent.
  • The dollar was mixed, trading at 109.13 against the Japanese yen and 1.2384 against the euro.

Statistics:

  • Dow Jones Industrial Average fell 38.79 points, or 0.38 percent, to 10,208.80.
  • Nasdaq composite index lost 16.78 points, or 0.87 percent, to close at 1,914.88.
  • Standard and Poor's 500-stock index gave up 3.67 points, or 0.33 percent, to 1,111.47.
  • Oil prices jumped $1.53 to close at $40.97 a barrel, the highest level since June 1.
  • Retail sales declined 1.1 percent in June, the highest decline in 16 months.
  • Trading volume reached 3.48 billion shares for the Dow Jones Industrial Average and 1.92 billion shares for the Nasdaq composite index.

Sources:

  • UPI: "U.S. stocks tumbled Wednesday, closing at session's lows on renewed concerns over rising oil prices and Intel Corp.'s outlook."