US stocks mixed, oil halts drop as dollar slips

New York - US stocks fluctuated after the biggest drop in a month as technology shares reasserted leadership to offset renewed selling in energy producers. Crude’s selloff halted and Treasuries fell.

The Nasdaq 100 Index paced gains among major American equity benchmarks, while the two-day drop in energy shares in the S&P 500 Index topped 2%.

Crude fluctuated near $43.50 a barrel after falling into a bear market. The pound rallied after hawkish comments from the Bank of England’s chief economist. Saudi Arabian equities rallied amid a palace reshuffle. Shanghai stocks advanced after MSCI added China’s domestic shares to its emerging-markets gauge.

Weaknesses in crude and other commodities threaten to dent arguments from US central bankers that soft inflation rates will be transitory. That may add to investor concerns of a Fed policy error that could unintentionally crimp the global economic recovery.

Meanwhile, MSCI said it will add 222 China A-share stocks to its developing-nation measure starting in May 2018. The index provider delayed its decision on the status of Argentina’s equities and said it will consult on the possible inclusion of Saudi Arabia in the index.

Here are some of the key events on the agenda:

Still to come on the Fed speaker list: Jerome Powell, James Bullard and Loretta Mester. New Zealand’s central bank is expected to leave its benchmark interest rate at a record low when it meets on Thursday.

And here are the main moves in markets:

Stocks

The S&P 500 Index rose 0.1% to 2 4398.29 as of 16:06. Technology and health-care shares led gains, while energy stocks fell 0.8%. The Nasdaq 100 Index added 0.3%. The Stoxx Europe 600 lost 0.2%, with financial shares leading the way. The MSCI Emerging Markets Index slid 0.3%. Saudi Arabia’s Tadawul All-Share Index jumped 5.5%.

Commodities

West Texas oil rose 0.1% to $43.54. Futures tumbled more than 2% on Tuesday, touching the lowest since August. Gold rose 0.1% to $1 244.13 an ounce after falling for five straight days.

Currencies

The British pound jumped 0.6% to $1.2706. The euro climbed 0.2% to $1.1151 after two days of declines. The yen slipped 0.1% to 111.54 per dollar, after gaining 0.1% on Tuesday. The Bloomberg Dollar Spot Index fell 0.2% after rising 0.3% on Tuesday and 0.4% the previous day.

Bonds

The yield on 10-year Treasuries rose one basis point to 2.17%, after declining three basis points on Tuesday. The yield on UK benchmark bonds rose five basis points.

Asia

Australia’s S&P/ASX 200 Index slumped 1.6% erasing its gain for the year, as energy shares tumbled. BHP Billiton and Rio Tinto slid at least 2.9%.

The Shanghai Composite Index finished with a 0.5% gain, after swinging between gains and losses throughout the day following the MSCI decision. Hong Kong’s Hang Seng Index fell 0.6%.

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