The S&P 500 Gains and Losses Today: Uptick in Gold and Oil Lifts Mining and Energy Stocks

Introduction

On Wednesday, March 13, 2024, the S&P 500 experienced a slight decline of 0.2%, pulling back from the previous day’s record close as the tech sector rally showed signs of wavering. Despite this overall dip, certain sectors saw gains thanks to an increase in gold prices and a surge in crude oil futures.

Market Overview

The major U.S. equities indexes displayed mixed results on Wednesday, with the tech sector losing momentum in the midweek trading session. Following a report on higher-than-expected inflation in February, investors are eagerly awaiting retail sales and Producer Price Index (PPI) data for that month, which will provide further insights for the Federal Reserve as it considers potential interest rate adjustments.

S&P 500 Performance

The S&P 500 retreated by 0.2% from its record close on Tuesday, with the tech sector contributing to a 0.5% decline in the Nasdaq. In contrast, the Dow managed to eke out a 0.1% gain despite the overall market pullback.

Gold and Mining Stocks

After a slight drop in gold prices the previous day, the precious metal rallied on Wednesday, boosting mining stocks. Freeport-McMoRan (FCX), which operates the mine with the world’s largest known gold reserve, led the S&P 500 with a 7.6% increase.

Crude Oil Futures

Crude oil futures prices surged by approximately 3% following an unexpected decline in U.S. crude inventories and Ukrainian strikes against Russian refineries. This uptick in prices bolstered companies in the oil and gas sector, with Valero Energy (VLO) seeing a 5.2% increase, while Marathon Petroleum (MPC) and APA Corp. (APA) added 4.2% and 3.6%, respectively.

3M Co. Leadership Shake-Up

Shares of 3M Co. (MMM) rose by 5.4%, building on gains from the previous day after the conglomerate announced a leadership reorganization. Incoming CEO Bill Brown is set to lead the company through a spin-off of its health care division and ongoing legal challenges related to “forever chemicals.”

Dollar Tree’s Decline

Dollar Tree (DLTR) experienced the steepest decline on the S&P 500, plummeting by 14.2% after missing profit and sales estimates for the holiday quarter. The discount retailer also revealed plans to shutter around 1,000 Family Dollar stores due to macroeconomic uncertainties and merchandise stocking issues.

Fair Isaac Corp.’s Troubles

Shares of Fair Isaac Corp. (FICO) tumbled by 6.2% following reports that Senator Josh Hawley (R-Mo.) had requested a Department of Justice investigation into alleged anticompetitive practices by the credit reporting firm. Hawley criticized FICO for holding a “government-granted monopoly” due to its role in determining loan eligibility for government entities.

Tesla’s Stock Downgrade

Tesla (TSLA) shares fell by 4.5% after Wells Fargo downgraded the stock to underweight and slashed its price target. Analysts expressed doubts about Tesla’s ability to achieve sales growth in 2024, particularly as price reductions across various markets impact profitability.

Conclusion

While the S&P 500 experienced a slight decline on Wednesday, specific sectors such as mining and energy saw gains driven by increases in gold and crude oil prices. The market remains dynamic, with various companies facing unique challenges and opportunities that impact their stock performance.

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