Wednesday, February 28, 2024

Nasdaq continues its worst performance in 2024… and oil rises 3%.


Nasdaq continues its worst performance in 2024… and oil rises 3%.

After its worst daily performance in nearly three months, the Nasdaq U.S. stock index continued its poor performance on Wednesday, ending the day down 173 points and posting its fourth consecutive loss.

In Wednesday's trading, the decline points of the index, whose movements are managed by technology companies, represented 1.18% of its value at the beginning of the day, and the S&P 500 index, the most comprehensive sectors of the US economy, fell 0.80%, almost as much as the Dow Jones industrial average, which… He 0.76 % lost.

Tuesday, the first trading day of the new year, was the Nasdaq's worst day since October, with shares of most major tech companies falling and Apple shares losing nearly 4% of their value. Phone manufacturer rating. The most popular smart phone in the world. Apple shares fell another 0.8% on Wednesday.

The price of 10-year U.S. Treasuries also fell, with the yield rising above 4% for the first time in two weeks after trading at 3.91% on Tuesday.

The Nasdaq fell sharply

Market analysts believe the recent declines came on the back of profit-taking activity, particularly in the Nasdaq index, after seeing strong gains in December this year, amid expectations of more US interest rate cuts early next year. .

Major stock indexes were also under pressure on Wednesday afternoon following the release of minutes from the Federal Reserve's latest meeting that showed the central bank is not yet ready to cut interest rates.

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“Participants generally emphasized the importance of maintaining a careful, data-driven approach to monetary policy decisions,” the minutes said. ” is consistent with the group's goal.

However, officials have indicated that three-quarters of a percent of cuts are expected sometime this year, although there is a high degree of uncertainty over when those cuts might occur.

Oil prices rose about 3% on Wednesday after output from Libya's largest field was halted amid fears that growing tensions in the Middle East could cut global oil supplies.

Brent crude rose $2.36, or 3.1%, to $78.25 a barrel after settlement, while US West Texas Intermediate crude rose $2.32, or 3.3%, to $72.70 a barrel.

Both benchmarks rose for the first time in five days, while U.S. crude posted its biggest daily increase since mid-November.

“Oil is rising today, supported by protests at Libya's largest oil field and fresh attacks in the Red Sea,” said Craig Erlam, chief market analyst at Oanda Data and Analytics.

In Libya, a member of the Organization of the Petroleum Exporting Countries (OPEC), protests prompted the shutdown of the Sharara oil field, which produces 300,000 barrels per day.

Oil also rose after Israeli forces stepped up their bombardment of the Gaza Strip on Wednesday after the war spread to Lebanon, killing the deputy head of the Hamas political bureau.

Hassan Nasrallah, the head of the Iranian-backed Lebanese Hezbollah group, said on Wednesday that the killing of Hamas's deputy leader was “a huge and dangerous crime that cannot be tolerated.”

In the Red Sea, the Iran-aligned Houthi group also continued its attacks on merchant ships, fueling fears of a potential wider conflict in the Middle East that has shut down key routes for transporting crude oil, including the Red Sea. And the Gulf.

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In OPEC member Iran, two blasts killed more than 100 people and injured dozens more in 2020 at a ceremony commemorating Revolutionary Guard chief Qassem Soleimani, who was killed in a US drone strike.

After OPEC member Angola announced its withdrawal from the organization last month, OPEC confirmed that cooperation and dialogue will continue with the organization and its allies, the alliance known as OPEC+.

OPEC+ includes OPEC and its allies, including Russia.

Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

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