Stocks slide on Powell’s inflation warning, oil hits $112
Nike will report earnings after the bell
U.S. stocks closed lower after Federal Reserve Chairman Jerome Powell gave a fresh warning on inflation.
"The inflation outlook had deteriorated significantly this year even before Russia’s invasion of Ukraine," he said in remarks to the National Association of Business Economics while signaling more aggressive rate hikes may be necessary.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 43944.04 | +535.57 | +1.23% |
| SP500 | S&P 500 | 5954.3 | +37.19 | +0.63% |
| I:COMP | NASDAQ COMPOSITE INDEX | 18983.423091 | +17.28 | +0.09% |
The Dow Jones Industrial Average fell over 300 points or 0.6%, while the S&P 500 and Nasdaq Composite were lower by 0.04% and 0.4%. All three major averages closed above the lows of the day.
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Powell's warning comes a few days after policymakers rolled out the first interest rate hike in three years of 25 basis points and hinted that six more could come this year.
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U.S. stocks were moving downward early Monday morning after gains last week put the market in positive territory for March. (Courtney Crow/New York Stock Exchange via AP / AP Images)
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In deal news, Warren Buffett's Berkshire Hathaway is expanding its insurance portfolio with the purchase of Allegheny for $11.6 billion putting a portion of his $144+ billion in cash to work. The deal will expand Berkshire’s already considerable insurance holdings, including brands like Geico auto insurance.
The Omaha, Nebraska, company revealed last week that it had compiled a 14.6 stake in the oil producer Occidental Petroleum, snapping up an additional $1 billion worth of shares.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| Y | NO DATA AVAILABLE | - | - | - |
| BRK.B | BERKSHIRE HATHAWAY INC. | 474.15 | +4.57 | +0.97% |
| OXY | OCCIDENTAL PETROLEUM CORP. | 51.54 | +0.64 | +1.26% |
Boeing shares fell after a 737 with 132 people on board operated by China Eastern crashed in the southern province of Guangxi on Monday, officials said.
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| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BA | THE BOEING CO. | 143.43 | -2.65 | -1.82% |
| CEA | NO DATA AVAILABLE | - | - | - |
Elsewhere, Disney Co. closed its Shanghai theme park as the city tried to control its biggest coronavirus flareup in two years. The southern business center of Shenzhen allowed shops and offices to reopen after a weeklong closure.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DIS | THE WALT DISNEY CO. | 115.36 | +1.09 | +0.95% |
After the bell, Nike will report earnings.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NKE | NIKE INC. | 75.30 | +1.97 | +2.69% |
Crude prices rose over 7% as U.S. oil hit $112 per barrel, while Brent, the global benchmark, hit $115. Gas prices, per AAA, hovered below $4.30 per gallon.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| USO | UNITED STATES OIL FUND - USD ACC | 73.16 | +1.14 | +1.58% |
| BNO | UNITED STATES BRENT OIL FUND - USD ACC | 29.45 | +0.33 | +1.13% |
| UGA | UNITED STATES GASOLINE FUND - USD ACC | 62.72 | +0.13 | +0.21% |
Steel stocks and SPDR's metal and mining exchange traded fund bucked the downtrend in stocks closing higher.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| X | UNITED STATES STEEL CORP. | 40.72 | +2.34 | +6.10% |
| CLF | CLEVELAND-CLIFFS INC. | 11.88 | +0.21 | +1.84% |
| XME | SPDR® S&P® METALS & MINING ETF - USD DIS | 68.59 | +1.48 | +2.21% |
In cryptocurrencies, Bitcoin traded above the $40,000 level.
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The Associated Press contributed to this report.