Canada markets closed

Stocks - S&P Slumps Despite Rising Oil Fueling Energy Rally - Stocks moved lower overall on Monday in the wake of the drone attacks on Saudi Arabian oil facilities and oil fields.

But energy shares jumped as crude oil saw their biggest one-day jump in nearly 30 years.

The S&P 500 was off 0.31%, closing below 3,000 for the first time in four days.

The Dow industrials were off 0.53%, and the Nasdaq Composite fell 0.28%.

The market pullback came after the major indexes had just enjoyed three-straight weeks of gains in a rally set off on hopes that the U.S.-China trade war could ease. Instead, tension in the Middle East reasserted itself as a concern because Saudi Arabia produces roughly 10% of the world's crude oil.

The Trump Administration blamed the attack on Iran. The Iranians denied the charge. Combatants in Yemen, engaged in a war with the Saudis, claimed responsibility.

Meanwhile, voters in Israel head to the polls Tuesday in an election called by Prime Minister Benjamin Netanyahu, who had been unable to form a government after an earlier election cost him his majority in the Knesset.

The S&P 500 saw large losses for stocks vulnerable to energy price swings, such as American Airlines (NASDAQ:AAL); United Airlines (NASDAQ:UAL) and cruise-line operator Carnival (NYSE:CCL).

But the losses were offset by big gains for Apache (NYSE:APA), Cimarex Energy (NYSE:XEC) and Helmerich and Payne NYSE:HP). In fact, energy shares were by far the S&P 500's best performers.

At the same time, General Motors (NYSE:GM), hit by a labor strike, and News Corp (NASDAQ:NWSA) were lower.

The market's fall came as West Texas Intermediate crude hit nearly $63 a barrel and Brent futures crude settled above $69.

Gold Futures also moved higher as many investors sought shelter from geopolitical risk. Bond yields fell as well, reflecting the flight to safety. The 10-Year Treasury yield fell to 1.849% from Friday's 1.899%.

The Federal Reserve starts a two-day meeting on Tuesday and is expected to cut its key federal funds rate a quarter of a percentage point on Wednesday.

The stock-market slump was pretty much global, with stocks falling in markets in such countries as Germany, France, China, India and Brazil. Japan's stock market was closed.

The dollar moved up against major currencies.

The market tumble left the down about 1% from its all-time high set in July. The Dow ended down 1.17% from its July peak. The Nasdaq is down 2.2% from its peaks this summer.

Apache (NYSE:APA), contract oil and gas driller Helmerich and Payne Inc (NYSE:HP), Devon Energy Corporation (NYSE:DVN) and Cimarex Energy (NYSE:XEC) were among the top S&P 500 gainers.

American Airlines (NASDAQ:AAL), packaging company Amcor (NYSE:AMCR), Sealed Air (NYSE:SEE) and General Motors (NYSE:GM) were among the weakest S&P 500 performers.

Related Articles

U.S. stocks lower at close of trade; Dow Jones Industrial Average down 0.52%

U.S., Chinese trade deputy talks to start on Thursday: USTR

FedEx to increase shipping rates across units in 2020