Markets decreased between Sept. 6 and Sept. 11 as elevated oil prices and the possibility of continued rate hikes kept investors spooked.
Markets closed in the red on Tuesday due to a spike in crude oil prices. The Dow Jones Industrial Average lost 0.6%, the S&P 500 lost 0.4% and the technology-heavy Nasdaq composite lost 0.1%.
Crude oil prices shot up following Saudi Arabia’s decision to extend a 1 million barrel per day oil production cut until the end of the year. In addition, Russia has decided to extend a 300,000 barrels per day production cut until the end of the year.
The Materials Select Sector, the Utilities Select Sector, and the Financial Select Sector decreased 1.9%, 1.5% and 1.0%, respectively.
The Chicago Board Options Exchange’s Volatility Index increased 1.4% to $14.01. The CBOE Volatility Index is used as a gauge for investor sentiment concerning equity markets. A value below $20.00 denotes positive sentiment with relation to the state of the market.
The three major indexes decreased on Wednesday as investors remain wary of the Federal Reserve’s decision to continue hiking rates. The Dow fell 0.6%, the S&P 500 fell 0.7% and the Nasdaq fell 1.1%.
The Technology Select Sector and the Consumer Discretionary Select Sector lost 1.1% and 0.9%, and the CBOE Volatility Index rose 3.1% to a value of $14.45.
Investors believed elevated crude oil prices will result in higher inflation readings for September, which may influence the Fed’s decision to continue hikes.
Markets closed mixed on Thursday due to further investor caution regarding a potential September rate hike. The Dow increased 0.2%, the S&P 500 decreased 0.3% and the Nasdaq decreased 0.9%.
The Technology Select Sector fell 1.5% and the Utilities Select Sector rose 1.3%.
The CBOE Volatility Index lost 0.4%.
The Department of Labor announced that jobless claims decreased 13,000 to 216,000 for the week ended Sept. 2.
On Friday, the three indexes increased following a week of mixed advances. The Dow added 0.2%, while both the S&P 500 and the Nasdaq added 0.1%.
The Energy Select Sector, the Utilities Select Sector and the Communication Services Select Sector increased 1.0%, 0.9% and 0.3%, respectively.
The three indexes progressed on Monday ahead of the release of key economic data. The Dow rose 0.3%, the S&P 500 rose 0.7% and the Nasdaq rose 1.1%.
Investors should remain vigilant as readings for the Consumer Price Index and Producer Price Index continue moving markets.
