[New York Stock Exchange] 3 Major Indices Trim Losses as U.S. Treasury Eases Oil Price Surge
Oil Prices Surge on Qatar LNG 'Force Majeure' Concerns
Netanyahu Says "It Could End Sooner Than Expected" Late in the Session
Indices Pare Losses as Oil Price Rally Eases
After the three major New York stock indexes started lower, they narrowed their losses and closed higher following Israeli Prime Minister Benjamin Netanyahu's press conference on the possibility of ending the conflict. Photo by AP Yonhap News
View original imageOn March 19 (local time), the three major U.S. stock indexes opened lower after international oil prices surged when Qatar's liquefied natural gas (LNG) facility was attacked. However, the losses narrowed and the markets closed with smaller declines after Israeli Prime Minister Benjamin Netanyahu held a press conference discussing the possibility of ending the conflict. The market is currently being influenced by concerns over the potential prolongation of the Iran war and the ongoing energy crisis.
On the New York Stock Exchange (NYSE) that day, the Dow Jones Industrial Average closed at 46,021.43, down 203.72 points (0.44%) from the previous session. The S&P 500 index, which is focused on large-cap stocks, fell by 18.21 points (0.27%) to close at 6,606.48. The tech-heavy Nasdaq index ended the day at 22,090.691, down 61.73 points (0.28%).
International oil prices, which had surged early in the session on news of the Qatar LNG attack, lost some momentum after U.S. Treasury Secretary Scott Bessent said in an interview that “sanctions on Iranian oil at sea could be lifted within a few days.”
At one point during the session, Brent crude oil rose as much as 11%, surpassing $119.13 per barrel, but later gave up some of those gains and closed at $108.65, up 1.2%. As the sharp rise in oil prices subsided, the three major indexes also narrowed their losses. Oil stocks such as ExxonMobil and Chevron finished higher, gaining 0.58% and 1.66%, respectively.
In particular, Israeli Prime Minister Benjamin Netanyahu's second press conference late in the session also helped to ease market anxiety. Prime Minister Netanyahu stated regarding Iran, “They can no longer enrich uranium, and they have also lost the ability to manufacture ballistic missiles,” adding, “They are in a weaker position than ever before.” He also said, “The Iran war may end sooner than people think.”
Adam Crisafulli of Vital Knowledge pointed out, “The fundamental dilemma of this situation remains unchanged. The U.S. and Israel may have 'won' the conventional war, but without ground troops, there does not appear to be a military solution to reopening the Strait of Hormuz.” He emphasized, “In other words, without a diplomatic solution, the strait is unlikely to return to normal.”
Technology stocks declined across the board. Nvidia fell by 0.77%, Apple by 0.33%, Amazon by 0.56%, Alphabet by 0.18%, and Meta by 1.34%.
Hot Picks Today
"It Has Now Crossed Borders": No Vaccine or Treatment as Bundibugyo Ebola Variant Spreads [Reading Science]
- "Stocks Are Not Taxed, but Annual Crypto Gains Over 2.5 Million Won to Be Taxed Next Year... Investors Push Back"
- "Even With a 90 Million Won Salary and Bonuses, It Doesn’t Feel Like Much"... A Latecomer Rookie Who Beat 70 to 1 Odds [Scientists Are Disappearing] ③
- "Am I Really in the Top 30%?" and "Worried About My Girlfriend in the Bottom 70%"... Buzz Over High Oil Price Relief Fund
- "Who Is Visiting Japan These Days?" The Once-Crowded Tourist Spots Empty Out... What's Happening?
Peter Boockvar, Chief Investment Officer at One Point BFG Wealth Partners, said in an interview with CNBC, “This situation may not end as quickly as some hope, and even if it does, raw material prices are unlikely to return to pre-war levels.” He added, “In my view, there is no chance that oil prices will return to $65 per barrel.”
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.