Written by Edward Smith
Stocks shook off a midday slump and closed higher on Wall Street, though energy companies ended in the red as crude oil prices fell sharply. The S&P 500 ended 0.7% higher Monday, after being down as much as 0.6%. Tesla jumped 8% after saying it would seek shareholder approval to do another stock split. Crude oil prices sank 7%. China started to lock down Shanghai, its largest city and financial center, to conduct mass testing and control a growing outbreak of COVID-19. Bond yields fell after shooting higher earlier this month. The yield on the 10-year Treasury fell to 2.46%.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
Stock indexes on Wall Street are mixed in afternoon trading Monday, giving up some of their recent gains, as crude oil prices slumped and bond yields eased lower.
The S&P 500 was up less than 0.1% as of 2:11 p.m. Eastern. The Dow Jones Industrial Average fell 145 points, or 0.4%, to 34,712 and the Nasdaq composite rose 0.5%. The indexes are coming off two straight weekly gains.
Banks and energy stocks were among the biggest weights on the market as bond yields eased lower and energy futures fell broadly. JPMorgan fell 1.7% and Exxon Mobile slid 3%.
U.S. crude oil slumped 6.9% and Brent crude, the international standard, fell 6%. The drop follows news that China began its most extensive coronavirus lockdown in two years to conduct mass testing and control a growing outbreak in Shanghai. That could put a dent in global demand for energy.
Oil prices remain volatile amid the backdrop of Russia’s invasion of Ukraine.
The United Arab Emirates’ energy minister doubled down Monday on an oil alliance with Russia, saying that nation, with its 10 million barrels of oil a day, is an important member of the global OPEC+ energy alliance.
Ukraine and Russia are due to hold talks early this week in Turkey.
Oil prices are up more than 40% globally over concerns about tighter supplies as demand remains strong. Higher oil prices are also raising concerns that already persistently high inflation could be worsened, further threatening global economic growth.
Markets in Europe closed mostly higher, while markets in Asia ended mixed.
Russian shares slumped as its stock market resumed trading of all companies after a monthlong halt following the invasion of Ukraine. The last full trading session in Moscow was on Feb. 25, a day after the index tumbled by a third after President Vladimir Putin ordered the invasion.
Bond yields eased back after shooting higher this month. The yield on the 10-year Treasury fell to 2.46% from 2.49% late Friday. Bond yields have been rising as Wall Street prepares for higher interest rates. The Federal Reserve has already announced a 0.25% hike of its key benchmark interest rate and is prepared to continue raising rates to help temper the impacts of rising inflation.
Investors will get more updates this week on just how much inflation is hurting consumers and businesses. The Conference Board will release its consumer confidence index for March on Tuesday. The Commerce Department will release its February report for personal income and spending on Thursday and the Labor Department will release its employment report for March on Friday.
Company-specific news helped lift several stocks on an otherwise quiet day as the latest quarter nears its close and Wall Street prepares for the next round of corporate earnings. Tesla climbed 8% for the biggest gain in the S&P 500 after saying it is considering another stock split. Plantronics jumped 50.9% after HP said it will buy the headset maker.