Stocks Lose Steam as Demand Weighs on Oil

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All three major benchmarks were confidently higher midday

Stocks finished marginally lower today, after spending most of the session in the black. Despite trading up 400 points at its session highs, the Dow settled 47 points lower, while the S&P 500 and Nasdaq also lost steam later in the day. Federal Reserve Chairman Jerome Powell’s testimony before the Senate Banking Committee today injected some positivity into the markets, but the relief rally ultimately proved short-lived. In other news, U.S. President Joe Biden today urged Congress to suspend the federal gas tax for three months, as consumers continue to face high prices at the pump.

Continue reading for more on today’s market, including:

The Dow Jones Average (DJI –  30,483.13) dropped 47.1 points, or 0.2%, for the day. UnitedHealth Group (UNH) led the gainers, adding 2%. Dow (DOW), meanwhile, paced the laggards with a 4.8% drop.

The S&P 500 Index (SPX – 3,759.89) shed 4.9 points, or 0.1% for the day. Meanwhile, the Nasdaq Composite (IXIC – 11,053.08) fell 16.2 points, or 0.2% for the session.

Lastly, the Cboe Market Volatility Index (VIX – 28.95) lost 1.2 points, or 4.11% for the day.

5 Things to Know Today

  1. Retail holding company Franchise Group is reportedly considering lowering its bid to acquire Kohl’s (KSS) to $50 from about $60 per share, as recession fears swirl. (CNBC)
  2. Retail traders are blasting heavily shorted Revlon (REV) stock, with shares more than quadrupling since the company filed for bankruptcy last week. (MarketWatch)
  3. eBay breaks into NFT market with KnowOrigin buyout.
  4. RBC says this REIT could weather economic turmoil.
  5. Winnebago stock edged higher after an earnings beat.

Potential Gas Tax Holiday Nips Oil

Oil prices settled sharply lower on Wednesday to register their worst close in roughly six weeks. The potential three-month U.S. gas tax holiday and demand concerns weighed on black gold. August-dated crude shed $3.33, or 3%, to settle at $106.19 per barrel.

Meanwhile, gold futures finished modestly lower to log a third-straight loss. August-dated gold lost 40 cents, or about of 0.1%, to close at $1,838.40 an ounce.

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