Energy was the weakest performer among the S&P 500’s 11 sectors. Why? Crude oil futures took a hit after OPEC+ cut its demand forecasts for 2024 and 2025. This kind of news reverberates throughout the market because lower energy demand signals a potential slowdown in global economic activity. It’s no wonder then that energy stocks felt the heat—investors are naturally jittery about reduced profitability in this sector. Companies in the energy industry, such as ExxonMobil and Chevron, saw their stock prices decline as a result.

And if that wasn’t enough, the broader market is already grappling with worries about how the Federal Reserve will handle interest rates in the coming weeks, adding another layer of complexity to the market outlook.

Font: Reuters