Wednesday's session on Wall Street ended with a majority of declines among the main indexes, and investors anxiously watched rising oil prices.
The Dow Jones Industrial dropped 0.61% at the close. and amounted to 47.417.27 points. At the end of the day, the S&P 500 fell by 0.08%. and amounted to 6,775.80 points. The Nasdaq Composite increased by 0.08%. up to 22,716.14 points The Russell 2000 mid-cap index is down 0.21%. and amounts to 2,542.72 points. The VIX index falls by 2.65%. up to 24.27 points
Consumer prices (CPI – consumer price index) in the US increased by 2.4% in February. on a y/y basis, and m/m increased by 0.3%. Expected +2.4%. y/y and +0.3 percent mdm. Core inflation, i.e. an indicator that does not take into account fuel and food prices, increased by 0.2%. mdm and 2.5 percent rdr. Expected +0.2%. mdm and +2.5 percent rdr. A month earlier, CPI increased by 0.2%. mdm, and y/y increased by 2.4%. The core CPI increased by 0.3% a month earlier. mdm and 2.5 percent rdr.
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In the USA, there was an increase in the MBA mortgage application index – the seasonally adjusted index increased by 3.2%. in the week ended March 4 – reported the Mortgage Banks Association (MBA). Previously, the index increased by 11%.
US crude oil inventories last week increased by 3.8 million barrels, or 0.9 percent, to 443.1 million barrels. Gasoline stocks fell by 3.7 million barrels, or 1.4 percent, to 249.5 million barrels during this time. Reserves of distillate fuels, including heating oil, fell by 1.3 million barrels, or 1.1 percent, to 119.4 million barrels.
The International Energy Agency (IEA) agreed on Wednesday to release 400 million barrels of crude oil to deal with supply disruptions caused by the war with Iran. This is the largest action of this type in the history of the organization.
The IEA has not set a timetable for bringing the stocks to market. It indicated that the reserves would be released within a time frame adapted to the situation of each of the 32 Member States.
Goldman Sachs analysts estimated in a report that the release of such large supplies would offset 12 days of supply disruptions from the Persian Gulf, estimated by the investment bank at 15.4 million barrels a day.
– The oil market does not appear to believe that the largest-ever release of strategic reserves will significantly help combat the current crisis. – said SEB analyst Bjarne Schieldrop.
On Wednesday, Reuters reported that three ships were hit by unknown missiles in the Strait of Hormuz. One of the attacks led to a fire on board the ship and forced most of the crew to evacuate.
Due to the US and Israel's war with Iran, Germany is releasing some of its oil reserves. The German Institute for Economic Research (DIW) expects that the increase in fuel prices will increase inflation in Germany in 2026 by 0.4 percentage points.
Japanese Prime Minister Sanae Takaichi announced on Wednesday that due to the blockade of the Strait of Hormuz, her government will start releasing oil reserves on March 16 on its own. A mechanism will also be introduced to keep gasoline prices at around 170 yen ($1.07) per liter.
Wood Mackenzie, an energy consultancy, said the war is now reducing supplies of Gulf crude and petroleum products to the market by about 15 million barrels a day, which could push oil prices up to $150 a barrel.
– Even a quick resolution likely means weeks of disruption to energy markets – Morgan Stanley wrote in the report.
The United States and Israel carried out attacks on Iran on Tuesday in what the Pentagon and Iranians on the ground described as the most intense airstrikes in the history of the war.
“The biggest concern for markets is the extent to which the supply shock will lead to higher inflation, weaker GDP growth, higher-than-expected interest rates and lower corporate profitability,” said Kyle Rodda, senior financial analyst at Capital.com.
Clean energy stocks rose during Wednesday's session. Some of them remained around record levels.
Oracle shares were rewarded with an increase of over 8%. by investors on Wednesday for third-quarter results. Investor Joe Terranova thinks the stock's decline may be over.
Virtus Investment Partners' chief market strategist told CNBC on Wednesday that the report “supports the assumption of stability” at the company. He noted that the stock, which fell more than 58 percent. between September and early February, have stabilized since the lowest level on February 5.
“This report provides confidence that there is actually a cloud execution that allows them to realize this $50 billion of capital,” he said. Oracle has previously acknowledged concerns about rising debt to fund AI development.
On the oil market, WTI contracts for April are up by 5.74%. to USD 88.19 per barrel, and May Brent futures increase by 5.64%. up to USD 92.75/b. (PAP Business)
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