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BUSINESS Tuesday 17 sepTember 2019
A25

Stocks slip as surge in oil brings fresh economic worries

By STAN CHOE STRIKE ONE: General Motors
Associated Press sank 3.1% after more than
NEW YORK (AP) — Stock 49,000 members of the Unit-
markets around the world ed Auto Workers went on
took an apprehensive step strike. The union and com-
backward Monday after pany have been locked in
an attack on Saudi Ara- contract talks, and it wasn't
bia's biggest oil processing clear how long the walkout
facility sent the price of oil would last.
surging. WEEK AHEAD: The week's
The attack, which Yemeni headline event is the Fed-
rebels said they were be- eral Reserve's meeting on
hind, raised worries about interest rates. Investors are
the risk of more disruptions confident the central bank
for oil at a time when the will cut short-term rates by
global economy's strength a quarter of a percentage
is already seen as shaky. point to a range of 1.75% to
President Donald Trump 2%. It would be the second
warned that the United such cut in two months, as
States was "locked and the Fed tries to protect the
loaded" to respond as his economy from a global
administration pinned the John Wilson, with the New York Stock Exchange, monitors stock activity, Monday, Sept. 16, 2019. slowdown and the effects
blame for the attacks on Associated Press of the U.S.-China trade war.
Iran. Other central banks around
Crude prices soared ington and Beijing, and the oil supplies they've built up crude, the international the world are also making
around 12%, while prices S&P 500 had climbed back in reserves to make up for standard, rocketed up moves to help their econo-
for Treasurys, gold and oth- within 1% of its record. The the loss, analysts said. The $7.21 to $67.43 per barrel. mies amid slowing global
er investments seen as less Dow Jones Industrial Av- bigger threat is the worry That helped energy stocks growth. The European Cen-
risky rose. erage rose the past eight about more attacks in the in the S&P 500 surge 2.7%, tral Bank last week cut in-
The S&P 500 was down mod- trading sessions. future. the only sector among the terest rates and restarted a
estly, and stocks across the KEEPING SCORE: The S&P "At a time when oil markets 11 that make up the in- bond-buying stimulus pro-
New York Stock Exchange 500 dipped 0.3%, as of 11 have been in the shadows dex to rise. Marathon Oil gram.
were nearly evenly split be- a.m. Eastern time, after par- of a weak global macro- gained 9.8%, Devon Energy HAVENS: Prices for U.S. gov-
tween winners and losers. ing a loss that hit 0.5% short- economic backdrop, the rose 7.7% and oilfield ser- ernment bonds rose as in-
Energy stocks climbed with ly after trading opened. attack on critical Saudi vices provider Halliburton vestors moved into safer in-
the price of oil, while airlines The Dow Jones Industrial oil infrastructure calls into climbed 7%. vestments. Yields for bonds
and other companies that Average fell 139 points, or question the reliability of PAIN AT THE PUMP: Airlines fall when their prices rise,
have big oil and fuel bills 0.5%, to 27,079, and the supplies from not just one have huge fuel bills, and and the yield on the 10-
were sharply lower. Nasdaq composite slipped of the largest net exporters any rise in the price of oil year Treasury dropped to
The stock market has been 0.4%. Small stocks in the Rus- of crude oil and petroleum can hurt them. American 1.84% from 1.90% late Fri-
volatile since the sum- sell 2000 index were better products but also the coun- Airlines Group, which spent day. The yield on the two-
mer, as worries waxed and performers, and it climbed try that holds most of the $3.7 billion on fuel and taxes year Treasury, which moves
waned about the U.S.-Chi- 0.6%. world's spare production in the first half of the year, more on expectations for
na trade war. The most re- ENERGY SPIKE: The attack capacity," Barclays analyst fell 4.7% for one of the big- Fed policy, sank to 1.75%
cent move for stocks had in Saudi Arabia caused a Amarpreet Singh wrote in a gest losses in the S&P 500. from 1.79%.
been higher, boosted by big disruption to oil sup- report. United Airlines lost 2.6%, and Gold, another investment
renewed optimism in re- plies, but only a tempo- Benchmark U.S. crude Delta Air Lines lost 2.3%. seen as a safer place to
cent weeks about easing rary one. Other countries jumped more than $6 to Cruise ships also burn lots of park money, rose $12.20 to
tensions between Wash- can release some of the $61.48 per barrel. Brent fuel, and Carnival lost 1.7%. $1,511.70 per ounce.q