Dow Jones Falls 541 Points as Brent Rises 2.4% to $115.86
Key Facts
The Dow Jones Industrial Average fell 541 points, or 1%, at 11:12 a.m. Eastern time on Friday, Oct. 23, according to The Associated Press, as rising oil prices weighed on U.S. stocks. Brent crude rose 2.4% to $115.86 a barrel during trading, while about three-quarters of S&P 500 stocks declined. The indexes showed a clear divergence: the S&P 500 fell 0.2%, while the Nasdaq Composite rose 0.2%, supported by gains in major technology shares. The AP said the broader index was on track for losses for a second straight week. In EL7 daily closing data, the Dow ended the Oct. 23 session at 52,347.44, compared with 52,867.98 the previous day.
Oil’s rise extended the month’s gains, with Brent climbing from less than $97 a barrel at the start of October to its highest levels since March, according to The Associated Press. The rise in crude accompanied a broader decline among S&P 500 stocks, although the index itself fell less than the Dow in the trading cited. The Nasdaq, by contrast, held on to modest gains, supported by several major technology stocks. The divergence highlights how the session’s pressure was uneven across indexes and sectors, with technology shares advancing as most components of the broader index fell. The AP did not attribute an explanation beyond linking market pressure to rising oil prices to any specific analysts.
Crude’s rise came amid U.S. inflation data showing the consumer price index increased 0.6% in September, after a 0.4% rise in August, according to the Bureau of Labor Statistics. On an annual basis, the index rose 3.7% in the 12 months ended in September, while the gasoline index increased 9.1% during the month. The energy index also rose 5.2% in September, after climbing 2.1% in August, and was up 20.4% year over year. The figures put energy at the forefront of inflation components that posted increases during the month, as oil reached a level not seen since March. The yield on the 10-year U.S. Treasury note was 4.99%, up from 4.96% late Thursday.
Attention is turning to the Federal Open Market Committee meeting scheduled for Oct. 27 and 28, with a news conference on Oct. 28, according to the Federal Reserve’s calendar. The Associated Press said Wall Street expects interest rates to remain unchanged at the meeting, without specifying a rate level in its report. The meeting follows the release of September data showing monthly and annual increases in consumer prices and a larger rise in the energy index. The central bank is scheduled to meet over two days, according to the official calendar. Next week’s decision is the next milestone for investors tracking the course of monetary policy, as volatility in oil prices and bond yields continues.