Stocks rally, oil prices fall after OPEC+ increases output

Yahoo Finance's Ines Ferré breaks down how the major indices, Treasuries, meme stocks, and oil are performing in early trading.

Video Transcript

AKIKO FUJITA: Oil certainly in focus earlier today on the back of the OPEC decision.

INES FERRE: Yeah, that's right, and there's been some choppy trading when it comes to oil. I'll get to that in just a second. But just to take a look at the overall markets, we are seeing a bit of a rally. We're looking at the NASDAQ that is gaining the most out of the major averages, up 1.6%. Quite a bit of movement also happening in the bond market. We have been watching the 10-year Treasury punching through 2.8%. Yesterday, this was in the range of the 2.5's yesterday morning.

So let's take a look right now at the sector action. We are watching communication services and technology, which is leading to the upside, along with consumer discretionary. Over on the NASDAQ 100, we've been watching Apple, Amazon up more than 2%. Alphabet also. Meta up more than 4%. Taking a look also at the meme stocks, these are seeing gains today. GME and AMC up more than 3% each and over the last three days. You can see the gains there for the memes.

Finally, just also looking at oil. As you had mentioned, oil right now is-- WTI down 2.3%. Brent crude down more than 2%. Now, we did see US crude inventory data. Those rose for the fifth straight week. US crude exports fell 23%. Gasoline demand fell. So that may be why you're seeing some of the price action to the downside.

Also, earlier today, OPEC+ agreed to add some 100,000 barrels a day in production in September. Now, you'll remember that President Biden had gone to Saudi Arabia in an effort to try and cool prices. So that 100,000 barrels a day is seen by analysts as a modest production hike.

AKIKO FUJITA: Yes, certainly a big disappointment for the White House.