U.S. stocks fall with Dow shed 250 points, S&P 500 shed to start the week as investors eye on surging oil prices, economic worries, and major third-quarter earnings results ahead.
The Dow Jones Industrial Average dropped 250.19 points, or 0.7%, to finish at 34,496.06. The blue-chip average rose more than 200 points at its intraday high. However, the S&P 500 declined 0.7% to 4,361.19. The Nasdaq Composite slipped 0.6% to close at 14,486.20.
The benchmark U.S. oil price jumped $82 a barrel Tuesday morning, hitting the highest level before trading around $80 Monday.
“High or rapid increase in energy costs have triggered recessions in the past and there is a possibility that history could repeat itself if energy prices continue to rise. Higher energy prices result in lower disposable income for consumers,” Bernstein’s Neil Beveridge said.
Eight out of 11 S&P 500 sectors finished lower in Monday’s session.
On Monday, Goldman declined its U.S. economic growth forecast. The firm cut its 2022 growth estimate to 4% from 4.4% and weighted up its 2021 estimate down a tick to 5.6% from 5.7%.
“For activities like going to a movie theater, many individuals don’t anticipate resuming normal spending patterns for at least another 6 months, suggesting a full normalization in economic activity may take some time,” Goldman economist Joseph Briggs said.
JPMorgan reported results Wednesday, with Goldman Sachs, Bank of America, Morgan Stanley, Wells Fargo, and Citigroup later in the week.
Following September’s 4.8% drop, the S&P 500 jumped more than 1% for the month of October and reached about 4% from its record.