US Stock Market: DJIA, S&P500 and Nasdaq turns red in early trade on Monday
Dow Jones Industrial Average fell 123 points, or 0.4%, to 34,741
Tesla jumped 5.4% after it announced that it is considering another stock split
Energy stock saw some of the biggest drops as crude oil prices fell sharply
Stocks swung between small gains and losses in morning trade on Wall Street Monday in a slow start to the week. The S&P 500 slipped 0.1% as of 10:23 am Eastern Time zone. The Dow Jones Industrial Average fell 123 points, or 0.4%, to 34,741 and the Nasdaq slipped 0.1%.
Retailers and other companies that depend on direct consumer spending gained ground. Tesla jumped 5.4% after it announced that it is considering another stock split. Amazon surged 0.7%.
Energy stocks saw some of the biggest drops as crude oil prices fell sharply, Exxon Mobil fell 2.8%. US crude oil fell 7.2%. Brent crude, the international oil benchmark, slumped 6.6%. This comes after the news that China started its most extensive coronavirus lockdown in two years to conduct mass testing and control a growing outbreak in Shanghai. That could put a halt to global demand for energy.
Oil prices remain volatile following the war in Ukraine. UAE's energy minister reiterated Monday his desire for an oil alliance with Russia, saying that nation's 10 million barrels of oil a day make it an important part of the global OPEC+ energy alliance.
Ukraine and Russia are due to hold talks early this week in Turkey.
Oil prices are higher than 40% globally due to tighter supplies and a strong demand environment. Higher oil prices also raise concerns that persistently high inflation could worsen, further threatening global economic growth.
European markets were mostly higher, while markets in Asian markets were mixed.
Russian stocks plunged as its stock market resumed trading after a month-long pause due to the invasion of Ukraine. The previous full trading session in Moscow was on February 25, a day after the index slumped by a third after President Vladimir Putin ordered the invasion.
Bond yields eased back after surging higher this month. The yield on the 10-year Treasury dropped to 2.44% from 2.49% late Friday. Bond yields have been increasing as Wall Street prepares for higher interest rates.
The Federal Reserve has already raised its key benchmark interest rate by 0.25% and is ready to continue hiking rates to help control the impacts of rising inflation.