Stocks oscillated between small gains and losses in morning trading on Wall Street on Monday in a muted start to the week.
The S&P 500 fell 0.1% at 10:23 a.m. Eastern. The Dow Jones Industrial Average fell 123 points, or 0.4%, to 34,741 and the Nasdaq rose 0.2%.
Retailers and other businesses that rely on direct consumer spending have gained ground. Tesla rose 5.4% after announcing it was considering another stock split. Amazon rose 0.7%.
Energy stocks suffered some of the biggest losses as crude oil prices fell sharply. Exxon Mobil fell 2.8%.
US crude oil fell 7.2% and Brent crude, the international standard, fell 6.6%. The drop follows news that China has begun its most extensive coronavirus lockdown in two years to conduct mass testing and control a growing outbreak in Shanghai. This could reduce global energy demand.
Oil prices remain volatile amid Russia’s invasion of Ukraine. The UAE’s energy minister doubled down on an oil alliance with Russia on Monday, saying the country, with its 10 million barrels of oil a day, is an important member of the OPEC+ global energy alliance.
Ukraine and Russia are to meet earlier this week in Turkey.
Oil prices rose more than 40% globally on concerns about tighter supply as demand remains strong. Rising oil prices are also raising fears of a worsening of already high and persistent inflation, further threatening global economic growth.
Markets in Europe were mostly higher, while markets in Asia were mixed.
Russian stocks slumped as its stock market resumed trading of all companies after a month-long halt following the invasion of Ukraine. The last full trading session in Moscow was on February 25, a day after the index fell by a third after President Vladimir Putin ordered the invasion.
Bond yields retreated after soaring this month. The 10-year Treasury yield fell to 2.44% from 2.49% on Friday evening. Bond yields rose as Wall Street braces for higher interest rates. The Federal Reserve has already announced a 0.25% hike in its main benchmark interest rate and is poised to continue raising rates to help mitigate the effects of rising inflation.
Investors will get more updates this week on how much inflation is hurting consumers and businesses. The Conference Board will release its consumer confidence index for March on Tuesday. The Commerce Department will release its February personal income and spending report on Thursday and the Labor Department will release its March jobs report on Friday.