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US stocks hit by falling oil prices

2019-06-13 HKT 04:40
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  • The yield in the 10-year US Treasury note, seen as an indicator of future economic strength, also fell. image: Shutterstock
    The yield in the 10-year US Treasury note, seen as an indicator of future economic strength, also fell. image: Shutterstock
Wall Street stocks sagged for a second straight session on Wednesday, with petroleum-linked shares sinking with oil prices and banks falling on worries over economic growth.

Analysts said ongoing trade tensions between the US and China continued to weigh on sentiment, as did another decline in the yield in the 10-year US Treasury note, seen as an indicator of future economic strength.

The Dow Jones Industrial Average shed 0.2 percent to finish the session at 26,006.83.

The broad-based S&P 500 also lost 0.2 percent to close at 2,879.84, while the tech-rich Nasdaq Composite Index dropped 0.4 percent to 7,792.72.

"The market is concerned about the US economic growth, global growth, and the tariffs issue," said Quincy Krosby, chief market strategist of Prudential Financial.

He said investors are also somewhat less hopeful that the Federal Reserve will cut interest rates soon, after the US withdrew a plan to impose tariffs on Mexico.

Fresh economic data continued to show anaemic pricing pressures. The Consumer Price Index -- which tracks costs for household goods and services -- rose a token 0.1 percent last month compared to April, while the annual rate remains below the Fed's two percent target, the Labor Department reported.

Among individual companies, Facebook dropped 1.7 percent after the Wall Street Journal reported that Chief Executive Mark Zuckerberg was linked in emails to potentially problematic privacy practices.

Petroleum producers Marathon Oil and Apache each lost around three percent following a bearish US oil inventory report. Oil services companies also were weak, with Halliburton shedding 4.5 percent and Transocean 6.9 percent.

Large banks underperformed as well, with Goldman Sachs losing 2.3 percent and Citigroup 1.6 percent as Treasury yields declined. (AFP)