PiCK

US Stocks End Mixed as Dow Drops 280 Points on Oil Surge, Big Tech Hopes Limit Losses

Source

Korea Economic Daily

Summary

Concerns that international oil prices could stay elevated amid prolonged energy supply disruptions left major New York stock indexes mixed at the close.
The Federal Reserve (Fed) kept its benchmark rate unchanged, but markets read the decision as hawkish, sending Treasury yields higher.
Optimism over strong results from Big Tech companies including Alphabet and Amazon, along with after-hours gains, helped limit the market's decline.

Forecast Trend Report by Period

The three major U.S. stock indexes ended mixed on April 29 as a jump in oil prices fueled concern that energy supply disruptions could last longer, while optimism over Big Tech earnings helped cap losses.

The Dow Jones Industrial Average fell 280.12 points, or 0.57%, to 48,861.81 on the New York Stock Exchange. The S&P 500 slipped 2.85 points, or 0.04%, to 7,135.95, while the Nasdaq Composite added 9.44 points, or 0.04%, to 24,673.24.

Investor sentiment weakened as international oil prices surged on fears that energy supply disruptions would prove more prolonged than previously expected.

The Wall Street Journal reported a day earlier that President Donald Trump had instructed aides to prepare a long-term naval blockade of Iran to force Tehran to give up its nuclear program.

Axios and other U.S. outlets reported that Trump recently met privately with refining industry executives to discuss the impact of a war with Iran on energy markets and possible responses. The administration told participants that a maritime blockade of Iran could continue for several more months, the reports said.

Brent crude futures, the global benchmark, settled up 6.1% at $118.03 a barrel. During the session, Brent rose as high as $119.76, its highest level since June 2022.

The Federal Reserve left its benchmark interest rate unchanged at 3.50% to 3.75%, in line with expectations. Markets interpreted the decision as hawkish.

According to CME FedWatch, interest-rate futures priced in about a 12% chance that the Fed will raise rates by at least 25 basis points by December. A day earlier, that probability was 0%.

Still, declines were limited as investors remained optimistic about Big Tech earnings due after the closing bell.

Alphabet jumped more than 6% in after-hours trading after posting first-quarter revenue and profit above market expectations. Amazon also rose more than 4% after hours after its cloud business recorded its fastest quarterly growth in three years.

Treasury yields rose as investors weighed the prospect of persistently high oil prices and a hawkish Fed stance. According to electronic trading platform Tradeweb, the yield on the 10-year Treasury stood at 4.42% near the close of New York trading, up 0.06 percentage point from the previous session and the highest level in a month since late March. The policy-sensitive two-year Treasury yield rose 0.09 percentage point to 3.94% at the same time.

Ko Jeong-sam, Hankyung.com reporter jsk@hankyung.com