Share

US markets tumble on sinking crude prices

New York - Another sharp fall in oil prices pulled down energy stocks on Wall Street on Monday, pushing the main US indices to a loss after last week's record highs.

Meanwhile, Yahoo shares tumbled after Verizon announced it would buy the company's web properties for $4.8 billion.

The Dow Jones Industrial Average finished down 0.4% from Friday's close at 18 493.06.

The broader S&P 500 fell 0.3% at 2 168.48 and the tech-heavy Nasdaq dropped 0.1% at 5 097.63.

US benchmark WTI crude hit a three-month low of $43.13 a barrel after losing 2.4% in New York trade, hitting the shares of oil majors and service companies.

ExxonMobil lost 1.9% and Chevron dropped 2.5%. Schlumberger, the largest services firm, fell 1.1% and Halliburton 2.9%.

Bill Lynch of Hinsdale Associates said buyers were taking a breather after a heady climb.

"We've been up four consecutive weeks, it would be an opportune moment to take some profits," he said.
Yahoo shares fell 2.7% after the long-expected Verizon deal was announced. Verizon lost 0.4%.

The deal will see the Yahoo News, email and other assets integrated into Verizon's recently acquired AOL unit, while Yahoo will be left as a separate investment company holding Yahoo Japan and the company's most valuable asset, a huge stake in China's Alibaba Group.

"Yahoo is a company that has changed the world, and will continue to do so through this combination with Verizon and AOL," chief executive Marissa Mayer said.

Markets were turning their focus to the Federal Reserve meeting on Tuesday and on Wednesday and what the Fed, which is not expected to make any immediate policy shifts, says about the rest of the year.

"Suspicions are building that the Fed may go back to laying the groundwork for another rate hike in the near future," said Patrick O'Hare of Briefing.com

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.95
-0.3%
Rand - Pound
23.96
-0.3%
Rand - Euro
20.46
+0.0%
Rand - Aus dollar
12.36
-0.0%
Rand - Yen
0.13
-0.3%
Platinum
911.00
+1.6%
Palladium
1,012.02
+1.0%
Gold
2,214.22
+0.9%
Silver
24.75
+0.4%
Brent-ruolie
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.9%
Resource 10
57,251
+2.9%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders