U.S. stocks opened little changed Monday, while oil prices bounced after Saudi-led crude producers announced a surprise production cut over the weekend, saying they would reduce output by over a million barrels per day from May.
“This comes at a time when the fight on inflation is not over. If inflation from energy prices starts to rebound again, that won’t be a good scenario for central banks,” said Luc Filip, head of investments at SYZ Private Banking.
In recent market action:
- The S&P 500 fell less than 0.1% shortly after the opening bell. The Dow Jones Industrial Average added 105 points, or 0.3%, and the Nasdaq Composite declined 0.4%.
- The most-actively traded contract for the Brent crude benchmark rose 5.5% to trade at $84.30 a barrel, on track for the biggest daily increase since April 2022.
- Shares of energy majors listed in Europe climbed, with BP and Shell both up around 5%. U.S.-listed oil companies rose in morning trading, with Exxon Mobil and Chevron rising by about 3.7%.
- The yield on the benchmark 10-year Treasury note declined to 3.486%, from 3.491% at the end of last week.
Traders working on the floor of the New York Stock Exchange.
Photo:
BRENDAN MCDERMID/REUTERS
Coming Up:
- Survey data covering purchasing managers in the manufacturing sector are due out at 10 a.m. ET.
In individual stock moves after the opening bell:
↗️ McDonald’s (MCD): The Chicago-based fast-food chain is temporarily closing its U.S. offices as it prepares to inform corporate employees about layoffs. The stock was up 0.4%.
↘️ Tesla (TSLA): The electric-vehicle maker delivered a record number of vehicles in the first three months of the year, when it slashed prices.
shares fell 3.2% after the opening bell.
↘️ World Wrestling Entertainment (WWE): The company reached a deal to form a publicly listed company with Endeavor Group (EDR), which owns Ultimate Fighting Championship. WWE shares were down 8.3%; Endeavor’s stock was down 0.9% after the opening bell.
Write to Anna Hirtenstein at anna.hirtenstein@wsj.com
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