The US stock market closed lower on Wednesday, October 24, 2024, as investors grappled with a surge in oil prices and continued weakness in the technology sector. The benchmark S&P 500 index fell more than 1%, marking a significant downturn. The Dow Jones Industrial Average also closed in the red, dropping 1.32% to 42,358.19. The Nasdaq Composite Index, heavily weighted by tech stocks, took the biggest hit, falling 2.06% to 18,190.21.
Driving the market lower was a surprising rise in US crude oil inventories. The Energy Information Administration reported a 5.474 million barrel increase in inventories for the week ended October 18, significantly exceeding market expectations for a 0.7 million barrel gain. This news sent oil prices soaring, with the benchmark West Texas Intermediate (WTI) crude oil futures contract trading up 1.7% to $70.54 per barrel.
The rise in oil prices also weighed on the energy sector, which saw a decline in share prices. However, the technology sector was the biggest drag on the market. Information technology shares fell 2.1% on Wednesday, with several prominent tech companies reporting disappointing financial results or facing headwinds in the global macroeconomic environment.
Despite the market decline, there were some bright spots. Real estate shares rose 0.7% on Wednesday, bucking the broader market trend.
Looking beyond the US, European markets closed mixed on Wednesday. The eurozone’s STOXX 600 index fell 0.30%, with Germany’s DAX and France’s CAC 40 also closing lower. However, Spain’s IBEX 35 Index rose 0.27%, while London’s FTSE 100 fell 0.58%. Consumer confidence in the Eurozone rose by 0.4 points to a reading of -12.5 in October, offering a glimmer of hope for the region’s economy.
Asian markets also closed mixed on Wednesday. Japan’s Nikkei 225 fell 0.80%, while Hong Kong’s Hang Seng Index gained 1.27%. China’s Shanghai Composite Index rose 0.52%, and India’s BSE Sensex fell 0.17%. Singapore’s annual inflation rate eased to 2.0% in September, down from 2.2% in the previous month.
The mixed performance across global markets reflects the current state of uncertainty in the global economic landscape. Investors are closely monitoring factors such as inflation, interest rates, and geopolitical tensions, which are all impacting market sentiment and driving volatility. As the US Federal Reserve continues to grapple with inflation, the trajectory of interest rates remains a key focus for investors. The upcoming earnings season will also be a critical period for assessing the health of the economy and the outlook for corporate profits.
